Jaiz Bank recordsN1.07 billion loss

Jaiz Bank recorded an operating loss of N1.07 billion, Alhaji Umaru Mutallab, the Chairman, Board of Directors of the bank, said in Abuja.

Mutallab, who made this known at the maiden Annual General Meeting (AGM) of the bank, said the bank also realised N3.29 billion as deposits in the period under review.

He attributed the “lackluster performance’’ of the bank to lack of sharia-compliant liquidity management instruments and hiccups experienced in joining the settlement and clearing system.

Mutallab listed other reasons as the challenges of fully implementing the core-banking software and learning curve, among others.

“The bank’s first year of operation was a very challenging one, not only being a startup, but also a pioneer in a new finance service sector.

“This, notwithstanding, Jaiz Bank was able to tap a lot of opportunities in the industry. The bank was able to garner total deposits of N3.29 billion,’’

He said that investments made by the bank in the year amounted to N1.9 billion, while shareholders’ funds rose by 53 percent from N6.45 billion to N10.1billion.

The chairman attributed the increase to the recently concluded private placement exercise conducted by the bank which was successful.

On income, he said that gross earnings during the period under review, amounted to N79.56 million.

Muttallab said that the board had taken all necessary steps to ensure that the bank obtained a national license, which would enable it to operate in all the states of the federation.

This, he said would give Nigerians a feel of “the alternative banking model option’’.

He noted that in the mist of operational challenges, the bank had maintained its drive in developing the nascent sector.

Jaiz Bank Plc, a non-interest bank, is the first of its kind to be established in the country.

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