JAIZ Bank returns on equity investment to grow by 350% in 5 years.
Jaiz Bank Nigeria plc has, disclosed that the Sharia compliant financial institution, is set to return value to shareholders’ funds, by maintain a world-class corporate governance standard and rewarding dividend policy.
Managing Director, Jaiz nigeria Plc, Hassan Usman, disclosed recently in Lagos, adding that irrespective of expected growth in the bank’s equity price, the institution, through its projections, anticipates a payout dividend ratio of not less than 50 per cent.
He said that the five-year projected earnings and plans showed that Jaiz Bank’s returns on Equity of Investment Account Holders, expected to close at N1.42 billion in 2017, is however, projected by the bank to close 2021 at N3.48 billion.
Hassan said that operating profit of the bank is structured to grow organically over the next five years.
Operating Profit, according to Usman, is expected to close 2017 at N1.92 billion, and balloon to N7.94 billion in 2017.
According to the CEO, the bank’s share as a Mudarib/Equity investor projected to close 2017 at N5.91 billion, the chairman said, is forecast to close 20121 at N14.43 billion.
Income from Financing Investments is expected to grow from N6.01 billion in 2017 to N14.67 billion in 20121, income from Sukuk, which is aimed at N1.3 billion in 2017, is projected to grow to N3.23 billion in the 2021 financial year, while Gross Income from Islamic financing transactions projected to close 2017 at N7.33 billion, the CEO said is expected to peak at N17.91 billion in 2021.
The bank chief noted that, the 5 –year financial projections, rest upon seven 7 strategic pillars, as the drivers of the strategic initiatives under the 5-year medium term plan of the Bank.
“We have a dividend policy that tries to strike a balance between retaining sufficient cash in the business to finance our organic growth strategy and rewarding our shareholders, who have come a long way supporting the Bank’s vision since our first IPO in 2003. Based on our projection, we anticipate to have a payout Ratio of not less than 50% over our current plan period” the CEO said.
The CEO, Jaiz bank revealed that the bank’s corporate plan outlines the way forward, with the strategies, priorities and activities “we will focus on to achieve our financial goals”.
He said that Jaiz bank is positioned to reinvent 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/shareholders.”
He said,”We are focused on building on our culture of ethics and taking the necessary business decisions to align our perspective with client expectations.”
