Jaiz Bank lists share worth N36.8bn

The Nigerian Stock Exchange (NSE) on Thursday admitted through Listing by Introduction of 29,464, 249,300 Ordinary Shares of Jaiz Bank Plc at N1.25 per share. The listing has added N36.8 billion to NSE market capitalisation.

The Managing Director, Jaiz Bank Plc, Mr. Hassan Usman, at the listing presentation, said the non-interest bank is targeting 50 per cent shareholders return on their investment by 2018.

Usman at the Fact behind the Listing  today on The Nigerian Stock Exchange (NSE) explained to investing public and market stakeholders that the bank is focused at growing its profit to N5.56 billion by 2021 with reinvention of the banking landscape across the country.

The bank has anticipated dividend payout ratio of not less than 50 per cent.

According to him, “We have set out on a path of reinvention of the banking landscape in the country. This journey over the next few years will focus on changing how banks should operate to better improve the lots of the community, while delivering on their commitments to the investors.

“We are focused on building on our culture of ethics and taking the necessary business decisions to align our perspective with client experience,” he said.

The Chairman, Jaiz Bank plc, Dr. Umar Mutallab, at the presentation, said the non-interest bank has overcome its struggles.

He noted that the bank would bring domestic investors across the country.

According to him, “jaiz Bank struggled over listing on NSE. The bank is to bring Nigerians together. Our shareholders cut-across all members of the society”.

Jaiz Bank is not Muslim oriented bank but a non-interest bank that operates through partnership. The Chief Executive Officer, NSE, Mr. Oscar Onyema, at the listing said.

With large un-banked populations as well as established middle class across the continent, which is home to numerous member nations of Organization of Islamic Countries, Africa has been openly touted as a target Islamic finance market.

Traditionally the size of the Islamic finance industry is  measured as hard assets held by institutions considered part of the Islamic finance industry.

According to the World Bank, the estimate of current size of the industry ranges from $1.88 trillion to $2.1 irillion with expectations of market size to be $3.4 trillion by end of 2018.

In January 2012, the Central Bank of Nigeria (CBN) granted Jaiz Bank an approval to operate as a regional non-interest bank in northern Nigeria. As a result, Jaiz bank became the first and only full-fledged Islamic bank in Nigeria, and recently obtained a National Operating License from CBN.

“We are pleased that Jaiz Bank has taken this strategic step to join the Main Board of the Exchange and in so doing, the prestigious club of quoted companies in Nigeria.

“This step indicates the firm’s belief that in spite of the economic challenges facing the nation, our platform remains veritable avenue for _raising capital and enabling sustainable national growth. I commend Jaiz Bank for this bold and strategic step.

“Your listing on the NSE today will not only showcase Jaiz Bank as an African champion, but will enable the Bank position itself towards the actualization of its strategic vision of serving the Sub-Saharan Markets.

“As you are aware, Islamic finance has grown rapidly over the past decade, and this banking segment has become systemically important across many regions.

“Jaiz Bank has gone through a rigorous process to meet the listing standards of the NSE.

“With this listing, the company is showing its commitment to living a culture of strong corporate governance, excellent corporate citizenship and efficient services to its clients.

“As a listed company, we also believe that Jaiz Bank intends to provide increased returns to its shareholders,” NSE CEO said.