Jaiz Bank Plc has submitted a request to Nigerian Exchange Limited for the approval and listing of a rights issue of 5.4 billion ordinary shares of N0.50 each at N1.00 per share.
According to Nairametrics, this was stated in the NGX weekly report.
Trading License Holders were informed, according the statement, that Jaiz Bank Plc. had submitted an application to Nigerian Exchange Limited for the approval and listing of a rights issue of five billion, four hundred and eight million, three hundred and fifty-six thousand, five hundred and thirty-six (N5,408,356,536) ordinary shares of N0.50 each at N1.00 per share through its joint stockbrokers, Finmal Finance Services Limited and Kundila Finance Services Limited.
This was calculated using the ratio of 250 existing ordinary shares to 87 newly issued shares as of Friday, October 6, 2023, the last day of business.
The announcement stated that the Qualification Date for the Rights Issue is October 6, 2023.
Jaiz Bank Plc reported a profit before tax of N6.6 billion for the 2022 fiscal year, up N2.4 billion, or 53%, from the N4.2 billion realized during the same time in 2021.
The Islamic bank also reported a 29% rise in gross profits from N25.8 billion in 2021 to N33.43 billion in 2022. When compared to N16.9 billion in 2021, its net income increased by 33% from N16.9 billion in 2021 to N22.5 billion in the 2022 financial year.
According to an audited financial report presented at the bank’s recent 11th Annual General Meeting in Kano, assets increased by 36% to N379.6 billion as of December 31, 2022, from N279.3 billion the year before.
The bank’s operating costs decreased despite its operating expenses rising by 23.8% to N15.9 billion, showing a favourable cost-to-income ratio of 70.5% as opposed to 74.5% from the previous year.
Similar to this, as of December 31, 2022, the bank’s net income margin was 8.29%, and its capital adequacy ratio was 19.5%, indicating managed capital that was significantly higher than the minimal regulatory standards.
Jaiz Bank’s total balance sheet size increased by 36% to N379.8 billion from N279.3 billion in 2021 due to a massive surge of 39% in customers’ deposit liabilities at N291.5 billion in 2022 compared to N209.1 billion in 2021.
The shareholders also approved a regular resolution at the AGM authorizing a rights issue of 5,410,589,668 shares and a private placement of 10,048,237,955 common shares.
The directors were given permission to “take all necessary actions to implement the resolution”.
Speaking to reporters outside of the AGM, the chairman of the board of directors, Alhaji Mohamad Mustapha Bintube, said that strategic investments in digital and fintech transformations were the cause of the outstanding accomplishments shown in the year under review.
Bintube also stated that Jaiz would maintain the momentum of its strategic expansion and support, particularly in the area of innovation through new products, Medium and Small Entrepreneurs, and digitization.
The bank’s managing director, Dr. Sirajo Salisu, reaffirmed the bank’s intention to increase the number of its branches from the current 47 to 60 by adding 13 new branches.
He continued by saying that the management is well-positioned strategically to increase its customer base to four million in the next five years.
A shareholder, Patric Ajujua, praised the bank’s professional and efficient management and the regular payment of dividends to shareholders.
