Nigerian bank speaks on meeting new capital requirement by CBN

• Jaiz Bank Plc said it is set to meet the Central Bank of Nigeria new capital base required by banks in Nigeria
• According to the Managing Director of the bank, with just N1.3 billion, the bank will be able to meet the new target
• Musa declared that he was positive that an IPO would be used to raise the remaining funds

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Jaiz Bank Plc has expressed hope regarding reaching the N20 billion recapitalisation deadline set by the Central Bank of Nigeria (CBN).

Jaiz Bank's total assets rose from N279 billion in 2022 to N580 billion in 2023, a 108% rise. Photo Credit: Jaiz Bank
Source: UGC

The bank is only N1.3 billion short of the goal, according to Managing Director Haruna Musa, who made this announcement at the bank's Annual General Meeting (AGM) on Tuesday, July 16.

Prior to the CBN's announcement, the bank had proactively raised N10.4 billion through a private placement, increasing its total capital to N18.7 billion.

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Musa stated that he was certain that the remaining amount would be raised via an IPO, making Jaiz Bank the first to finish the recapitalisation process.

In the fiscal year 2023, the bank had equally remarkable financial performance. The year before, gross earnings increased by 42% to N47.2 billion from N33.2 billion. Compared to N6.6 billion in 2022, Profit Before Tax (PBT) increased by 67% to N11.1 billion.

The Nation reported that by 2023, customer deposits had increased from N209 billion in 2022 to N466 billion, a 123% increase. Total assets also increased by 108% from N279 billion in 2022 to N580 billion in 2023.

The bank's chairman, Mohammed Mustapha Bintube, expressed delight at the organisation's accomplishments and emphasised that the earnings for the first half of 2024 had already surpassed the profit for the previous year.

Jaiz Bank, Nigeria's largest Islamic bank

Legit.ng reported that Jaiz Bank, the largest Islamic bank in Nigeria, has reported its highest profit in five years, according to its 2022 financial statement submitted to the Nigerian exchange.

According to the statement, the bank's profit after tax in 2022 rose to N6.9 billion, 69% from N4.1 billion recorded in 2021.

Jaiz Bank also reported that its pre-tax profit accelerated by 59.5% to N6.6 billion.

Source: Legit.ng