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Thursday, March 30, 2023

Jaiz Bank Exposure to Directors, Related Parties Jumps 165% to N2.36bn

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Jaiz Bank Plc which has just released its audited results for the period ending December 2020 has some related party exposures to its Directors, and significant shareholders totaling a sum of N2.36 billion, which is up by 165 percent compared to the earlier period.

This includes an off balance sheet facility to the tune of N401.15 million granted to Dangote Cement Plc, whose parent company Dangote Industries Limited is a significant shareholder (owning 8.48%) in Jaiz Bank.

Jaiz Bank says all the loans are performing, although net impairment charges surged by 180 percent to N3.2 billion in 2020 from N1.14 billion in 2019.

Total impairment charges stood at N8.56 billion as at 31 December 2020.

Other directors/related parties benefiting from loans from Jaiz Bank include: Noble Hall Limited related to Jaiz Bank’s chairman Umaru Abdulmutallab in the amount of N265.73 million, Hassan Usman a Managing Director in Jaiz in the amount of N12.29 million, Fursa foods in which Dangote Industries is a significant shareholder in the amount of N538.68 million, Ahmad Rufai Sani a non-executive director to which Jaiz Bank is exposed to in the amount of N238.13 million and Abdulfattah Olarenwaju Amoo an Executive director in the bank owing N49.4 million.

Jaiz Bank says it follows a strict process before granting such credits to its Directors.

Parties are considered to be related if one party has the ability to control the other party or exercise influence over the other party in making financial and operational decisions.

The Bank’s key management personnel, and persons connected with them, are also considered related parties.

The definition of key management includes the close family members of key personnel and any entity over which key management exercise control.

Jaiz Bank shares are listed on the Nigerian Stock Exchange and have returned -1.52 percent this year, compared to a -4.03 percent return for the broader market.

The stock closed at N0.65 per share on Friday.

Profit after tax for the 2020 period for the bank rose by 2.66 percent to N2.5 billion in 2020.

Jaiz Bank Plc, is a bank in Nigeria operating under Islamic banking principles and is a non-interest bank. It is the first non-interest bank established in Nigeria and is headquartered in Abuja.

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