Annual Report & Accounts

Annual Report & Accounts
2019
www.jaizbankplc.com
”
But if you turn away (from such an
unlawful transaction) then you shall
have your principal (without
interest) back. (Thus) you shall
neither deal unjustly nor be dealt
with unjustly.Quran 2 vs 279
”
PAG E
Contents
Overview 3
A N N U A L R E P O RT A N D A C C O U N T S 2019
Ÿ Corporate Philosophy 4
Ÿ Our Story 5
Ÿ Directors, Officers & Professional Advisers 6
Ÿ Business & Financial Highlights 7
Ÿ Location & Offices 8
Ÿ Chairman's Statement 10
Ÿ Chief Executive's Statement 14
Business Review 19
Ÿ Sustainability Report 20
Ÿ Corporate Social Responsibility Report 24
Ÿ Risk Management Report 27
Governance 39
Ÿ The Board 41
Ÿ Advisory Committee of Experts 49
Ÿ Management Team 50
Ÿ Directors' Report 53
Ÿ Corporate Governance 61
Ÿ Directors Responsibilities 75
Ÿ Board Evaluation Report 76
Ÿ Statutory Audit Committee Report 77
Ÿ Whistleblowing Report 78
Ÿ Advisory Committee of Experts Report 79
Financial Statements 81
Ÿ Report of Independent Auditor 82
Ÿ Statement of Financial Position 87
Ÿ Statement of Comprehensive Income 88
Ÿ Statement of Changes in Equity 89
Ÿ Statement of Cash flows 90
Ÿ Statement of Sources & Uses of Qard Funds 91
Ÿ Statement of Sources and Uses of Charity Fund 92
Ÿ Notes to Financial Statements 93
Ÿ Five Year Financial Summary 133
Ÿ Value Added Statements 135
Stakeholders Information 135

Ÿ Notice of Annual General Meeting 136
Ÿ Notes 139
Ÿ e Dividend Form 141
Ÿ Proxy Form 143
Overview
PAG E
Vision, Mission, Core Values...

Vision
To be the clear leader in Ethical Banking in Sub-Saharan Africa
Mission
Making life Better through Ethical Finance
Core Values
Ÿ Responsibility
Ÿ Entrepreneurship
Ÿ Simplicity
Ÿ Partnership
Ÿ Excellence
Ÿ Customer Focus
Ÿ Trust
Business Philosophy
Our philosophy is to deliver world class Sharia compliant financial services to our
clientele irrespective of class, creed, race or religious belief and to contribute to the
socio-economic development of the society.
PAG E
Our Story
J aiz Bank PLC – the premier Non-Interest Bank in
Nigeria commenced operations on the 6th of
January, 2012 on a foundation of trust,
professionalism and excellence to deliver innovative
financial solutions and exceptional customer
experience.
The Bank started with a Regional License obtained from the Central The difference is that Islamic Banks do not
Bank of Nigeria to operate in the Northern part of the country and its give or receive interest, nor finance
transformation to a National Bank on the 12th of May 2016 with key anything that is harmful to the society like
presence in virtually all the geopolitical zones of the country. alcohol, tobacco, gambling etc. They also
avoid gharar- speculation, extreme
The Bank's core values are built on 7 principles with the acronym uncertainty and deception. A significant
RESPECT; Responsibility, Entrepreneurship, Simplicity, Partnership, portion of Nigerian population is desirous
Excellence, Customer Focus and Trust. These core values are the of ethical banking services which Non-
guiding force that empowers the Bank to project towards its vision to be Interest Banking is poised to deliver.
the clear leader in ethical Banking in Sub-Saharan Africa.
In a nutshell, Non-Interest Banking is real-
Jaiz Bank is a publicly quoted company of the Nigerian Stock Exchange economy oriented where profit and loss
(NSE) with a balance sheet size of N167 billion (as at December 31st sharing arrangement, mark-up, leasing
2019) from N12 billion in 2012. Financing and Investment assets also and partnership are mostly the mode of
grew from over N30 billion in 2012 to N107.7billion (as at December financing .
31st 2019). Other critical parameters such as customer deposits,
branch network and profitability have all been growing year – on – year
since inception.
About Islamic Banking

Non-Interest Banking is a profitable growing global phenomenon
practiced in nearly 70 countries across the world including the United
Kingdom, Canada, the United States of America, the United Arab
Emirates, Malaysia, China, Singapore, South Africa, Kenya etc. Global
Banks like HSBC, Citibank, Barclays Bank, Standard Chartered etc. are
also offering non-interest banking products and services.
It is an alternative financial service offering which is open to all,

irrespective of race or religion. It is based on the ethical principles of
fairness, transparency and objectivity. Non-Interest Banking offers
almost all the services of conventional banks.
PAG E
Directors, Officers & Professional Advisers
Directors
Alh. (Dr.) Umar Abdul Mutallab - Chairman
Prof. Tajudeen Adepemi Adebiyi - Independent Director
Nafiu Baba-Ahmad - Independent Director
Alh. (Dr.) Aminu Alhassan Dantata - Non-Executive Director
Alh. (Dr.) Musbahu Mohammed Bashir - Non-Executive Director
Alh. Mukhtar Danladi Hanga Sani - Non-Executive Director
Alh. (Dr.) Umaru Kwairanga - Non-Executive Director
Mall. Falalu Bello - Non-Executive Director
Dr. Ali Chatti - Non-Executive Director
H.R.H. Engr. Bello Muhammad Sani - Non-Executive Director
Alh. (Dr.) Muhammadu Indimi - Non-Executive Director
Mr. Hassan Usman - Managing Director
Mr. Mahe Abubakar Mahmud - Deputy Managing Director
Mr. Abdulfattah O. Amoo - Executive Director
Company Secretary Registered Office:

Mrs. Rukayat O. Dahiru Jaiz Bank Plc
FRC/2014/NBA/00000009649 Kano House
No 73 Ralph Shodeinde Street, No 73 Ralph Shodeinde Street,
Central Business District, Abuja. Central Business District, Abuja.
Registrar and Transfer Office: Independent Auditor
Africa Prudential Plc. Ahmed Zakari & Co.

(Formerly UBA Registrars Plc.) 222B Oladipo Diya Crescent,
220B Ikorodu Road, 2nd Avenue, Dolphin Estate, Ikoyi, Lagos.
Lagos.
Tax Advisors
Abdulazeez & Co. Oladele Konsulting

No. 26, Cotonou Street, Wuze Zone 6, (Chartered Tax Practitioner & Management Consultants)
Abuja Suite C11 Othini Plaza, Plot 1528, Nouakchott Street
Wuse Zone 1, Abuja.
PAG E
Business & Financial Highlights
Statement of Financial Position 31-Dec-2019 31-Dec-2018 Changes
N'Million N'Million (%)
Total Assets 167,273 108,462 54%
Financing & Investment Assets 107,775 71,816 50%
Deposits 127,193 85,033 50%
Share Capital 14,732 14,732 0%
Total Equity 15,552 13,109 19%
Income Statement 31-Dec-2019 31-Dec-2018 Changes
N'Million N'Million (%)
Gross Earnings 14,715 8,744 68%
Profit Before Taxation (PBT) 2,110 898 135%
Taxation 333 (63) 625%
Profit After Taxation (PAT) 2,443 834 193%
Ratios 31-Dec-2019 31-Dec-2018 Changes

Cost to Income 80.21% 87.28% 8%
Return on Assets 1.26% 0.83% 52%
Return on Equity 13.57% 6.85% 98%
Capital Adequacy 16.44% 21.13% -22%
Liquidity 33.60% 27.94% 20%
Others 31-Dec-2019 31-Dec-2018 Changes
Number Number (%)
Earnings Per Share 8.29 kobo 2.83 kobo
Proposed Dividend 3kobo -
Number of Branches/Offices 38 33 15%
Number of Staff 1,054 808 30%
Number of Shares in Issue (Million) 29,464 29,464 0%
180000
160000
140000
Millions
120000
100000
80000
60000
40000
20000
0
Total Assets Financing & Deposits Share Capital Total Equity

Investment
Assets
160000
140000
Millions
120000
100000
80000
60000
40000 2018
20000
0
-20000
Gross Earnings Profit Before Taxation Taxation Profit AfterTaxation
(PBT) (PAT)
2019
PAG E
Our Branches
Head Office:
Kano House,
73 Ralph Shodeinde Street,
Central Business District, Abuja.
P. M. 31Garki, Abuja, Nigeria.
Tel: +234 9 460 (JAIZ) 5249
e-mail: [email protected],
website: www.jaizbankplc.com
Abuja Branch Gombe Branch Iwo Road Branch

Ground Floor, Kano House, No. 8 New Market Road, S7/264, Iwo Road,
73 Ralph Shodeinde Street Commercial Area Ibadan – Oyo State.
CBD, FCT- Abuja. Gombe State.
Jos Branch
Apapa Gusau Branch No 25, Ahmadu Bello Way,
No. 17 Wharf Road, No. 21 Canteen Road, Jos, Plateau State.
Apapa, Lagos State. Opposite CBN Gusau,
Zamfara State. Kano 1 Branch
ATBU Branch No. 55 Tafawa Balewa Way,
Abubakar Tafawa Balewa University, Gwarimpa Branch Off Murtala Muhammad Way,
Bauchi State. 1st Avenue, DBB Plaza, Kano, Kano State.
Gwarimpa, FCT - Abuja.
Banex Branch Kaduna 1 Branch
Bannex Plaza, Wuse, Ikeja Branch 11A Ali Akilu Road,
FCT Abuja. De Plazaville Shopping Complex, Kaduna, Kaduna State.
119 Awolowo Way,
Kaduna 2 Branch
Bauchi (Allen Round About)
Farida Ventures Building,
No. 2 Mohammed Bello Kirfi Road, Ikeja, Lagos State.
Kano Road, Kaduna,
Off Ahmadu Bello Way, Bauchi State.
Kaduna State.
Ikoyi Branch
Dugbe Branch 39, Awolowo Road, Kano 2 Branch
No.3 Fajuyi Road, Dugbe Ikoyi, Lagos State. No. 13E Bello Road
Ibadan, Oyo State. Kano, Kano State.
Ilorin Branch
Funtua Branch No.11 Unity Road, Kano 3
No. 69, Sokoto Road, (beside Kasmag Transport) Kabuga Shopping Complex,
Funtua, Katsina State. Ilorin, Kwara State. Along BUK/ Gwarzo Road,
Kano, Kano State.
PAG E
Our Branches
Kano 4 Branch Marina Branch Samaru Branch
Opposite Trade Fair Complex, No. 2/4 Davies Street, Ahmadu Bello University Road,
Zoo Road, Kano, Kano State. Kingsway Building, Opposite Main Gate, Samaru,
Marina, Lagos, Zaria,Kaduna State.
Kano 5 Branch Lagos State.
Plot 140, Opposite NNPC Depot, Shaki Branch
Maiduguri Road, Hotoro, NASS Branch Oke-Dio Junction,
Kano, Kano State. National Assembly Complex, Secretariat Road,
3 Arms Zone Shaki, Oyo State.
Katsina Branch Abuja.
No 109B IBB Way, Kofar Kaura, Sokoto Branch
Katsina, Katsina State. NNPC Branch No 5 Ahmadu Bello Way,
Ground Floor, Former Finbank Building,
Kebbi Branch Block B Room 16, Sokoto, Sokoto State.
Plot 20 Ahmadu Bello Way, NNPC Towers, Abuja.
Birnin-Kebbi, Kebbi State. Unilorin Branch
Osogbo Branch Main Campus
Lokoja Branch No. 4, Gbongan Road, University of Ilorin,
No. 4 John Holt Road, Osogbo, Osun State. Ilorin, Kwara State.
Along Paparanda Square,
Lokoja, Kogi State. Port Harcourt Branch Wuse Branch
186 Abba Road, No 36 Douala Street
Maiduguri Branch (Opposite Water Line) Off Herbert Macaulay Way,
No. 18 Shehu Laminu Way, Port Harcourt, Erisco Bompet Plaza,
Maiduguri, Borno State. River State. Zone 5 Abuja.
Mararaba Branch PZ-Zaria Branch Yola Branch

Plot 664 Cadastral Zone A11, No. 2 Crescent Road, No 14, Mohammed Mustapha Way
Mararaba Gurku, Karu, Sabon Gari, Zaria, Opposite Jimeta Modern Market
Nasarawa State Kaduna State. Yola, Adamawa State.
PAG E
10
Chairman’s Statement
The Bank has a long and

remarkable history in its
journey towards
licensing and has made a
significant contribution
to the banking landscape:
history of banking in
Nigeria cannot be
complete without the
mention of Jaiz Bank as
the pioneer of Non-
Interest Banking.
11
PAG E
12
A N N U A L R E P O RT A N D A C C O U N T S 2019 PAG E
...the Code
in the comfort of your homes
Funds Airtime
Transfer Top-up
Enquiry
Services
Buy Bills
Data Payment
PAG E
14
Managing Director’s
Statement
The Bank's Profit Before

Tax (PBT) exceeded
N2billion mark for the
first time in eight years
of our existence as a
bank.The PBT grew from
N898million in 2018 to
the N2.11billion in 2019
(representing a growth
of 138%), which made
the outgoing year a
resounding one for the
Bank. Profit After Tax
(PAT) grew by 196%
from N834million
(2018) to N2.472(2019).
PAG E
15
Managing Director’s Statement
Overview Domestic Economy
Nigeria's real Gross Domestic Product
All gratitude due to the Almighty for (RGDP) expanded by 2.3% in the third
sparing our lives to witness yet another quarter of 2019 representing the 10th
back-to-back increment and the 2nd
financial year and for all the blessings in highest growth rate recorded since Q2-
2017 when the economy bounced back
the outgoing year. The year 2019 has from recession.
been another strong outing for the Inflationary pressures were tamed for the
larger part of 2019, with a high Consumer
Bank with appreciable progress being Price Index (CPI) base in H1 2018 and
made in the advancement of our slower economic activity (GDP averaged
2.1% in 9M'19). In Q3 2019, CPI
mission of creating value for customers, movement was more visible on a month-
by-month measure as the high base of
while at the same time delivering 2018 largely muted year-on-year
inflation. The land border closure in
significant returns to Shareholders. September, 2019 lifted headline inflation
by 36bps to 11.61% in October and this
Operating Environment effect on inflation is expected to persist in
Global Economy 2020.
Trade wars among developed nations slowed the global economic
growth. Trade tensions between UK and EU (Brexit); US and China; US Following a downtrend, the capital
and Iran led to a slowdown in global economic growth and dragged market lost over 14% since December
down China's GDP growth which negatively influenced global oil 2018, this also wallowed as the ASI
demand and oil prices. declined for most of 2019. Average daily
turnover of ₦3.6 billion was recorded
US Fed cut benchmark rate three times consecutively in a spate of four within the period.
months to the range 1.5% - 1.75%. This also contributed to the
reduction in Nigeria's Treasury Auction rates. The President and Vice President were
sworn in for the second term of four
The European Central Bank (ECB) unveiled a batch of stimulus by years on May 29, 2019. Their re-election
loosening policy for the first time since 2016, as it tries to revive growth usher in continuity of economic progress
and inflation. The ECB decided to cut interest rate by 10bps to -0.5%; and policies.
restart quantitative easing; open-up its forward guidance; among others.
The Nigerian government signed the
Descending trajectory was noted, and this reflected negative surprises African Continental Free Trade Area
to monetary action in a couple of few emerging market economies, (AfCFTA) agreement designed to create
remarkably India, which led to a reassessment of prospects in the next a single market in Africa. Signing the
two proceeding years. agreement flagged commitment of
Nigeria to the agenda of a united Africa.
Global growth is projected to decline from an estimated 2.9 percent in
2019 to -3 percent in 2020 and 5.8 percent for 2021 according to the Tranches of FGN Bonds of various
IMF April 2020 World Economic Outlook. maturities were offered for sale in the Q3
2019. From an offer of N400billion,
PAG E
16
N557billion was subscribed but only 3% fee. The policy took effect in FCT and Lagos, Ogun, Kano, Abia,
N200billion allotted. Additionally, Anambra as well as Rivers states.

N91billion was allotted on a non- The Apex Bank equally introduced a framework for PSBs in order to
competitive basis. promote financial inclusion and enhance access to financial services for
the unbanked and underserved segments of the population. PSBs
The Nigerian economy is forecasted to operate on an asset-light premise via digital platforms and physical
grow at 2.3% according to AfDB. access points (agents) which tremendously reduces customer
acquisition and servicing costs.
Banking Industry
In 2019, the Central Bank of Nigeria Revised guide to banks charges was released towards the end of 2019 to
(CBN) continued to support the take effect on January 1, 2020. A downward review of electronic
currency through its intervention in the banking transactions charges is one of the drastic changes. The review is
foreign exchange market in order to aimed to align with market developments, inclusion of new sections on
maintain exchange rate and price stability, Accountability/Responsibility and a sanction regime to directly address
and to a large degree, promote economic instances of excess, unapproved and/or arbitrary charges.
growth.
Performance Review
In October 2019, the Central Bank of The Gross Earnings leaped from N8.744billion in 2018 to
Nigeria (CBN) excluded individuals and N14.714billion in 2019, representing a 68% growth. The Bank's Profit
non-bank corporates from participating Before Tax (PBT) exceeded the N2billion mark for the first time in eight
in the Open Market Operation while years of our existence as a bank. The PBT grew from N898million in
restricting participation to commercial 2018 to the N2.11billion in 2019 (representing a growth of 138%),
banks and foreign investor. This policy led which made 2019 a resounding year for the Bank. Profit After Tax (PAT)
to increased system liquidity and a grew by 196% from N834million (2018) to N2.443billion (2019).
subsequent fall in interest rates of
government securities. During the reporting period (2019), we grew the Total Assets of the
Bank from N108.4billion to N167.3billion representing an annual
The CBN in July 2019 set the LDR increase of about 54%. The Financing and Investment Assets of the Bank
requirements for Deposit Money Banks equally witnessed an upward nudge from N71.5billion (2018) to
at 60% and subsequently increased it to N109.6billion (2019).As at 31st December 2018, Total Deposit of the
65% with a deadline of December 30, Bank was N85billion, but we raised this to N127billion over a 12-month
2019. This led to growth in risk assets in period ending 31st December 2019 (representing an annual growth of
the banking sector by N1.16 trillion about 50%).
within a period of five months (October
2019). The manufacturing sector The progress we recorded in 2019 is broad-base, apart from stronger
recorded highest growth with a total of Income Statement and Balance Sheet, we have equally tackled our
N459billion. efficiency base, with the consequent reduction in our cost-income-ratio
(CIR) from 87.28% in 2018 to 80.21% in 2019. We have equally delivered
In a bid to improve effectiveness of stronger Return On Equity (ROE) of 13.57% during the year (a
monetary policy and payment system, the significant increase of over 100% when compared with that of 2018).
CBN introduced a new policy on cash-
based transactions which provides; cash Notwithstanding, the remarkable performance of the Bank remain
deposits above N500,000 for individuals strongly committed to sustaining the performance and creating
to attract 2% fee while cash deposits optimum value to all its stakeholders.
above N3million for corporates to attract
PAG E
17
Customers
one-year on-the-job-training recruitment
Our customers are the fulcrum of our existence and we continue to programme. A total of 232 applicants sat
focus on providing them with quality and affordable non-interest for the selection test into the programme
(Islamic) banking products and services. During the reporting period, we of which 64 passed representing a success
supported the aspirations of 2,321(two thousand three and twenty- factor of 8 in every 29 individuals.
one) SME customers through the provision of working capital and
machinery worth N3.79 billion. Our retail customers continue to see I sincerely appreciate the dedication and
Jaiz Bank as the preferred place to bank, that was why during the year hard work of all our staff, without them
they came to us with financing requests worth N18.07 billion that would the remarkable result of 2019 would not
better their lives. We placed 480 families on the housing ladder through have been possible.
our Ijarah Mortgage financing worth N14.69 billion which supported
their dreams of home ownership. Our Corporate and Structured Conclusion
Finance customers remain delighted at the variety of innovative ways we We are seeing visible proof of the added
support their businesses. We provided 4,675 financing deals totalling value of our continuous strive towards
N69.35 billion to this category of customers during the year of which making the Bank the preferred institution
N4.92 billion was to manufacturing, N14.11 billion to real estate, for all our stakeholders. This was
N10.31 billion to downstream oil and gas, N11.06 billion to trading and supported by the outcome of the Bank's
N28.95 billion to a variety of other sectors of the economy. maiden external credit rating conducted
by the International Islamic Rating Agency.
Staff An investment-grade rating of A+ (short
We want Jaiz Bank to continue to remain a great place to work for all of term) was assigned to the Bank which is a
our staff, and to make it easier for them to do what they do best – resounding corroboration of the Bank's
delighting our numerous customers. During the year, the Board sound financial health.
sanctioned the implementation of an earlier approved performance-
based incentive to boost employee productivity. In retrospect, one can In the years ahead, we shall continue to
see that the correlation between the performance-based incentive and deepen our engagement with the MSME,
overall performance of the Bank in 2019 is positive. We shall leverage on agri-businesses across all value chains and
this to ensure employees sustain this high performance in 2020 and focus on unserved markets and the
beyond. financially excluded segments of our
society. This we believe within the current
As part of our commitment to offering opportunities for our staff to context of our society, shall create an
pursue a career in the Bank, in 2019 over 409 staff benefited from institution that will pass the test of time.
promotions or step-wise notch increment. As part of plans towards
securing a vibrant workforce of the future for the Bank, a total of 64 Thank you
candidates participated during the year in our two-month intensive
Executive Traineeship programme at the Umaru Mutallab Training
Academy in Zaria, of which 63 of them were successful and have since Hassan Usman, FCA
joined the Jaiz Family. The Bank continuously attracts millennials to its Managing Director/Chief Executive
Do
with your
#JaizMobile Plus
Funds Transfer Bill Payments Buy Airtime Buy Data
Business
Review
PAG E
20
Sustainability Report
T
he Bank recognizes that its success is not only measured in terms

of profits and growth, it is also how it engages with and supports
its customers, communities, employees, and how the Bank
monitors their impact on the environment.
The Bank defines sustainability as operating its business in a way that
meets the needs of its stakeholders, preserving the environment and
ensuring social well-being today, and in the future in a Shari'ah compliant
way.
Sustainability Priorities
Ÿ Sustainable business practices – sustainability is integrated
throughout the business, both in terms of Bank's operations and
governance systems in line with its NIFI mandate, and relationships
with key stakeholders.
Ÿ Community – for well being of the communities we live in, the Bank
invests in a diverse range of activities to help them flourish.
Ÿ Environment – the Bank has a responsibility to use resources wisely
and to minimize the environmental impact of our business
operations and activities. It also has responsibility of efficient and
conservative use of resources in order to ensure Bank's business
operations and activities do not impact negatively on the
environment.
Ÿ Employees – employees are the most valuable resource; the Bank
strives to create an engaged workforce by providing a supportive,
safe and professional workplace environment for employees to
attain their full potentials.
Ÿ Social welfare Banking - The Bank with its mandate as a Non-
Interest Financial Institution (NIFI), has one of its basic principles as
being more than for-profit, but welfare in an ethical way that can
benefit the society at large.
Sustainable Business Practices

Ÿ This is embedded in the Bank’s policies, procedures and practices in
line with Shari'ah principles. Strong Shari'ah governance and ethics
are the fundamental foundations upon which the Bank offers
competitive compliant products and services to its customers. This
also helps the Bank in aiming at long term sustainability of its
operations for the benefit of all its stakeholders. Therefore, it focuses
to maintain sustainable growth while ensuring that it provides
competitive Shari'ah-compliant products and services that enable
our customers and the society to secure their financial future.
General Commitments
Ÿ Based on the Nigeria Sustainability Banking Principles (NSBP), the
Bank is committed to the following general principles:
PAG E
21
Principle 1 ( Business Activities) Principle 7 | Capacity Building:
Ÿ Environmental and Social Risk Management: The Bank shall integrate Ÿ The Bank shall develop individual /
environmental and social considerations into decision making institutional and sector capacity
processes relating to its Business activities to avoid, minimize or necessary to identify, assess and
offset negative impacts. manage the environmental and social
risks and opportunities associated
Principle 2 ( Business Operations)
with its Business Activities and
Ÿ Environmental and Social Footprint: The Bank shall avoid, minimise
Business Operations in tandem with
or offset the negative impacts of its Business Operations on the
Shariah principles.
environment and local communities in which it operates and, where
possible, promote positive impacts within the boundary of Shariah Principle 8 | Collaborative
jurisdictions. Partnerships:
Ÿ The Bank shall collaborate across
Principle 3 ( Human Rights)
sectors and leverage international
Ÿ The Bank shall respect human rights in its Business Operations and
partnerships to accelerate the
Business Activities as per mandate of Shariah principles.
collective progress and move the
Principle 4 | Women's Economic Empowerment: sector as one, ensuring its approach is
Ÿ The Bank shall promote women's economic empowerment co n s i s te n t w i t h i n te r n a t i o n a l
through a gender inclusive workplace culture in its Business standards and Nigerian
Operations and seek to provide products and services developmental needs within its
designed specifically for women through its Business Activities mandate as a Non- Interest Financial
within the purview of Shariah. Institution (NIFI)
Principle 5 | Financial Inclusion: Principle 9 | Reporting:

Ÿ The Bank shall promote financial inclusion, seeking to provide Ÿ The Bank shall regularly review and
financial services to individuals and communities that traditionally report on its progress in meeting
have had limited or no access to the formal financial sector. these Principles at the individual
institution and sector level.
Principle 6 | E&S Governance:
Ÿ It shall implement robust and transparent E&S governance practices
and assess the E&S governance practices of customers within its
mandate.
Assessment against the Nigeria Sustainable Banking Principles (NSBP):

The table below shows the NSBP and our application of each principle to our daily activities.
NSBP Meaning Performance
Principle 1 Our Business Activities: We modified the checklist and scoring template used to
Enviromental & Social as sess the Environmental and Social risks inherent in the
Risk Management Oil & Gas, Power and Agriculture sector.
There is a generic impact assessment checklist to assess the

risks inherent in other sectors
Our staff pay visits to the field to interact with the community
and to confirm human rights are not tampered with.
PAG E
22
Principle 2 Our Business Operations: The Jaiz Green Account is a savings account variant
Enviromental & Social Footprint. conceived essentially to drive waste recycling and
environmental stewardship in the society; The Green
Account promotes the culture of recycling of wastes through
a process whereby recyclable items submitted at dedicated
recycling locations are weighed, and awarded points. Points
earned are saved into the Recycler’s Green Wallet, and then
automatically converted into cash in the Jaiz Green Account
The bank presently has its 3 existing Financial Inclusion Centers

powered by alternative sources of energy.
Principle 3 Human Rights The Bank’s recruitment process/policy provides an

opportunity for all qualified physically challenged applicants
to apply to be considered as part of the Bank’s workforce.
Chapter 6.4 of the Human Capital Management Department
policy Handbook laid down the grievance procedures
and mechanism for grievance resolution.
The Bank ensures that lending activities are screened

against exclusion list and ventures that can be injurious or
harmful to people and environment by our Sharia’h Audit
Department such as brewery, gambling, trafficking both
humans and drugs, etcetera.
Our business philosophy is to deliver world class sharia’h

compliant financial services to our clientele irrespective of
class, creed, race, or religious belief and to contribute to the
socio-economic development of the society.
Principle 4 Women Economic We have a Jaiz Financial Inclusion Center in Mai adua in
Empowerment: Katsina state, mainly for women economic empowerment.
We avail them facilities to support their petty trading
activities and add them on health insurance scheme. We
have provided funds ranging from N10, 000 to N25, 000 to
over 1,000 women.
We opened two other centers at Baure and Zango both in
Katsina State; same financial support to empower low
income but economically active women is being extended
in the first quarter of the year 2020.
Principle 5 E&S Governance: The bank has E & S governance structure that supports
its strategy.
We have a policy on sustainability , environmental and
social risk management.
PAG E
23
Principle 6 Capacity Building 1. Jaiz Kids Can Code: The Bank conducted a 3 week
program tagged “Jaiz Kids can Code” for both existing and
prospective customers’ children. The curriculum of the
training included:
- Designing of computer games and animations using
Scratch, web- page design using HTML/CSS and
building of computer applications using Python under
the following topics:
Computer Programming with Scratch
HTML / CSS
Front End Web Development (UI/UX)
Physical Computing with Python
Introduction to Cloud Computing
Introduction to Robotics
- Developing soft skills in the following areas:
collaboration, presentation, communication, time
management and project management.
2. Spark up your business: The training exposed participants
comprising both existing and prospective Micro, Small
and Medium Enterprises (MSME) customers of Jaiz Bank to
“Social Media Marketing”. They were trained on the
advantages of internet marketing through the social media
to grow their businesses and achieve their dreams.
3. E-Mails are being sent to Staff on a Monthly basis on the
need for them to be aware of the General Sustainability
Banking Principles and play their part towards achieving a
sustainable Banking Industry.
Principle 7 Collaborative The bank is a member of the CBN/NSBP Team.

Partnerships:
Member of the Global Reporting Institute (GRI)
Principle 8 Reporting: The Bank reports twice a year to CBN on the implementation
of the NSBP
PAG E
24
Environmental and Social Risk (iv) Sector guidelines: Legislation, E&S impacts and risks, best practices
Management and mitigation measures

In order to manage E&S risks and (v) Standard documentation: Investment procedure forms
opportunities, a structured management (identification, evaluation, mitigation, monitoring)
approach is adopted by the Bank. Such a (vi) E&S reporting: Periodic reporting on E&S risks in the investment
management approach termed portfolio (internally and externally)
'Environmental and Social Management
System' (EMS) is detailed below. Corporate Social Responsibility (CSR) Report
The objective of the EMS are aimed at CSR is an integral part of our Bank’s culture. As a responsible Bank, we
supporting the Bank to: respect the interests of our stakeholders—our shareholders,
(i) B e t t e r u n d e r s t a n d t h e employees, customers, suppliers, teeming partners, and the wider
environmental and social risks in its community—and we actively seek opportunities both to improve the
portfolio environment and to contribute to the well-being of the communities in
(ii) Understand the environmental and which we operate.
social risks in our operations
(iii) Evaluate, mitigate and monitor Jaiz Bank recognizes society's increasing expectations of our industry
these risks on a structural basis and our company. We are committed to living up to stakeholder
(iv) Maximizing opportunities in the expectations as we endeavour to increase the positive social impact we
area of environmental and social have on our stakeholders. Our purpose is to improve people's lives thus
benefits our Mission – Making life better through ethical finance. We are strongly
(v) Comply with national standards committed to growing the Non-Interest Banking business and extending
and applicable international the reach to all and sundry.
covenants
(vi) Establish a good reputation among Building trust with our stakeholders is critical to our ability to deliver on
clients, investors and other relevant our purpose, as well as our long-term financial performance. We have a
stakeholders clear strategic path that we believe will further accelerate our journey to
build trust with key stakeholders and society.
The EMS is applied at all stages of the
Bank's investment (credit) cycle:
As a full-fledged Non-Interest (Islamic) Bank established to bridge the
The EMS is to be applied in all phases of
identified gaps in the society, we have been able to establish a robust
the investment process. It is integrated
approach that ensures that the Bank gives back to the society through
into the Bank’s core operations and
effective social economic initiatives in terms of reaching their need
firmly supported by top management.
through the basic provision of needs in clear cut areas.
The EMS is supported by a number of
policies and procedures namely: As one of the core principles of sustainability, we have provided
(i) Exclusion list :Selection of activities donations to corporate entities and other individuals as a blueprint in
that are excluded from financing our value creation agenda.
(ii) Environmental & Social Policy
:General declaration on the Bank's CSR Focus Areas
position regarding environmental Because CSR is also rooted in the concept that the impacts of our
and social issues business operations and services fall into and affect different
(iii) Risk categorization model (A, B, C): stakeholders, Jaiz Bank has developed a multidimensional approach to
Risk estimation based on achieve its vision.
international standards
PAG E
25
CSR Governance
The categories shown below represent our four areas of CSR and the
key activities associated with them: Jaiz Bank Corporate Communications
team champions our bank-wide
Environment - The effects our Bank and our employees commitment to CSR performance and
have on our surroundings. transparency. This team engages with
internal and external stakeholders to
Workplace - How our Bank provides a work environment assess, prioritize, and monitor CSR issues.
that promotes health, safety, security, The team establishes corporate CSR
inclusion and diversity, and professional strategy, drives processes for CSR
development opportunities. governance, and provides guidance and
coordination across business functions.
Marketplace - How our Bank interacts with our external CSR priorities are owned by the business
stakeholders (customers, business partners, functions, including Corporate
and suppliers) by demons trating our Communications, and are integrated into
responsibility through leadership in quality, ongoing business strategy and planning.
ethics, and transparency. Business functions set CSR goals,
implement plans, and measure
Society - The positive impacts our Bank and our performance. Where a CSR priority
employees have on the communities in which requires multiple functions to engage, we
we live and work. establish cross-functional teams to
implement our strategy and plans.
We are committed to taking real, measurable and reportable action in
these key areas, and making sure that we communicate about them
clearly and transparently.
Business Corporate
functions Communications
Performance
CSR reporting
measurement
CSR
Stakeholder
Implementation Business engagement
and analysis
Process
Prioritization, Stakeholder
goal setting, feedback to
and initiatives the business
PAG E
26
Respecting Human Rights In a extend the reach of our CSR programs, including governments, non
Digital Age profits, multilateral organizations, and peers.

As we enable our customers to embrace
and capture new opportunities driven by Wellness Benefits
digital transformation, we also recognize Creating a safe, supportive, and healthy work environment is part of
our responsibility to ensure that Our People Deal. This includes giving employees the resources they
transformation does not come at a need to stay well and care for others at home. We do this through a
societal cost. For this reason, we believe focus on safety in the workplace; health benefits that address physical,
innovation must advance hand-in-hand social and emotional needs; and flexible hours and technology that
with thoughtful policies and practices that enable people to integrate work and home life.
respect the human rights of all people.
At Jaiz Bank, we care deeply for one another and the world around us.
We look out for each other as part of our day-to-day, even—and
Stakeholder Engagement and especially—amid the buzz of business. We know balancing life's
Management responsibilities and joys are personal to every individual. Our approach
Bridging what is possible means building is not “one size fits all,” but rather “one size fits one.” We want to support
connections and trust with our key our employees and their loved ones during life's triumphs and
stakeholders through regular dialogue. challenges, and we design our global benefits to do just that.
Outside views help us identify and Comprehensive benefits, including medical, dental, and vision plans;
prioritize emerging issues, better align our disability coverage; and life insurance help employees stay healthy and
business to the society's needs, share the secure their families' well-being.
findings of our research, and evolve our
CSR strategy and programs. We also However, we do not stop there— we meet employees where they are.
encourage our stakeholders to provide Our Life-Connections health and fitness centers make it convenient for
feedback on our performance and people to prioritize health and wellness. The centers feature health
transparency. We partner with a wide clinics, fitness areas, and personal coaches to assist employees and their
range of organizations to shape and families deal with stress, weight management, and more.
PAG E
27
Risk Management Report
A t Jaiz Bank Plc we consider Enterprise Risk Management as VI. For better appreciation all functions
effective and fundamental to our entire business activities and and responsibilities of business
opportunities. We always encourage and promote a culture development officers are separated
where risk management and it's related capacity building is inculcated in from risk management functions.
all staff up to the board level. It's our belief that risk management is VII. Shari'a compliance always guides
critical to the attainment of both short and long term objectives of the the business activities of the bank.
bank through which we can identify, measure and explore daily-
increasing opportunities for our growth. 3. Risk Management Process
The risk management process leverages
Our strategic approach to all risks associated with business on a sound management framework
opportunities is guided by our risk culture, appetite and analysis as which was broke down into operational
contained in our Enterprise Risk Management framework. It has always manuals that closely adhere to the bank's
been part of our risk culture to ensure compliance with regulatory policy regarding all the major categories
guidelines and corporate governance standards at all levels. of risk that the bank faces when carrying
As expected of any Non-Interest Financial Institution (NIFI), at Jaiz Bank out its business. These are: Investment
we strongly pay particular attention to Shari'ah non-compliance risk, (Credit), Liquidity, Market (including
Credit risk, Market and Liquidity risks. Similarly, there are other risks that Equity Price, Profit Rate and Foreign
are relevant and material to our business including: Legal risk, Exchange risk), Operational (including
Operational risk, Information Security risk and Displaced Commercial Fraud Risk and Information Security Risk),
risk.wh and Documentation & Shari'ah Non-
Compliance risks. The Chief Risk Officer,
However, at Jaiz Bank Plc we have systematically put in place policies and who heads the Risk Management Division
processes in our Enterprise Risk Management framework to enable us reports directly to the Board Risk
identify, measure and manage such risks professionally, although in most Committee, with a dotted line to the
of the policies of the bank regarding Enterprise Risk Management and MD/CEO. He is responsible for the
Risk Management structure have not significantly changed during the establishment and maintenance of a
period under review. f r a m e w o r k g e a re d t o w a rd s t h e
enhancement of capacity to provide
2. Risk Management Philosophy greater value to
Generally, Jaiz Bank Enterprise Risk Management framework is largely a s h a re h o l d e r s / s t a ke h o l d e r s w h i l e
product of the bank's philosophy towards Corporate Governance, effectively dealing with the risks and
Compliance and Risk. The bank believes that a sound and robust risk uncertainties associated with business to
management framework will continue to serve as a solid foundation for protect the Bank from losses, thereby
its’ success. To this end, the bank considers the following while enhancing its competitive advantage. The
formulating the risk management framework; whole risk management processes of the
i. Risk assessment officers at all levels are encouraged to carry out Bank are guided by the Central Bank of
their duties independently, holistically and professionally. Nigeria (CBN), the Nigeria Deposit
ii. All new recruits of the bank irrespective of their backgrounds or Insurance Corporation (NDIC) and
proposed departments of deployment are to a rigorous training other relevant regulatory authorities, the
on risk management. Islamic Financial Services Board (IFSB), the
iii. The bank will continue to understand new challenges and Accounting and Auditing Organization of
innovations in the Industry with the view to unmasking treats and Islamic Financial Institution (AAOIFI), as
associated risks. well as the best practice.
iv. Any identified risk is promptly reported to the appropriate
decision making authority for necessary action. Th e b a n k h a s s t a n d a rd i ze d r i s k
v. All associated/potential risks to the bank are treated on a collective management policies Bank-wide in
responsibility basis. agreement with Shari'ah principles which
PAG E
28

give a clear and consistent direction for Appropriate and timely disclosure of information to Investment
the creation of risk exposures across all Account Holders (IAH) is maintained so that the investors are able to
asset creating business units. The bank has assess the potential risks and rewards of their investments and to
continued to maintain momentum protect their interest in their decision making process.
towards achieving optimal risk
management policies, practices and 4. Risk Management Culture
procedures, pursuing the following key In line with the Bank's risk management philosophy, the risk culture not
objectives: Continuous improvement in only describes but also explains the Bank's outlook to risk taking. The
investment and risk management management of the Bank considers risk management philosophy and
practices, escalating, monitoring and culture as the set of shared beliefs, values, attitudes and practices
collections, recoveries and settlement of characterizing how the Bank considers risk in everything it does, from
outstanding debts to bring about resilient strategy development and implementation to its day-to-day activities.
asset quality in the face of increased The Bank undertakes all profitable transactions that it considers prudent
challenges in its markets and meets its risk appetite and profile. The Bank continuously evaluates
the risk and rewards inherent in our business transactions, from strategy
Provision for a comprehensive guide and
development and implementation to our day-to-day activities.
framework in creating and managing risk
assets is in place; this ensures prompt
i. Minimization of potential risks that can jeopardize its fiduciary
identification of problems through risk
responsibility as a Non-Interest Financial Institution (NIFI)
management and prudent management
operating under Islamic financial principles while expanding the
when there is a decline in risk asset quality.
Bank's market share.
A sound process is in place for executing
ii. The responsibility for risk management in the Bank is fully vested in
all elements of risk management including
the Board of Directors, which in turn delegates such to senior
risk identification, measurement,
management.
mitigation, monitoring and reporting of
iii. The Bank pays attention to both quantifiable and unquantifiable
individual exposures and the overall risk
risks with special treatment for shari'ah non-compliance risk.
asset portfolio. When asset quality
iv. The Bank's management promotes awareness of risk and risk
declines, a system of adequate controls
management across the Bank.
over investment collection & recovery,
v. The Bank avoids products, markets and businesses where it cannot
with appropriate checks and balances, is
objectively assess and manage the associated risks in line with both
in place.
the shari'ah, and country perspectives.
A framework is in place to manage the
Bank's risk management policies and 5 Risk Management Goals
processes, including an income Jaiz Bank defines risk as the internal or external uncertainty that the bank
smoothing plan to manage Displaced faces in achieving its objectives, as well as the probability that an actual
Commercial Risk (DCR) by smoothing return on an investment will be lower than the expected return due to
the profits payout to Investment Account the different categories of risk that are inherent in its business model or
Holders (IAH) through the Profit the environment. Jaiz Bank maintains the following objectives:
Equalization Reserve (PER) and the i. Full compliance with all Shari'ah, regulatory and legal
Investment Risk Reserve (IRR). requirements, which are reflected in all the documented
frameworks and policies of the bank, specifically in the Enterprise
The quality and timeliness of risk Risk Management framework, and Investment Policy manual.
reporting to regulatory authorities and ii. Developing a professional risk management culture bank-wide via
provision of additional and voluntary a disciplined approach to risk-taking based on comprehensive
information needed to identify emerging bank-wide policies, processes and limits, professionally qualified
problems possibly giving rise to systemic staff, and ongoing technical development.
risk issues, is enshrined.
PAG E
29
iii. Investing and utilizing technology and systems that enable iii. Financial and Prudential ratio targets
enterprise-wide access to information for best practice risk are peg ged at a level more
management. conservative than regulator y
iv. Delineation of reporting lines and segregation of duties control requirements and better than the
between staff that are frontline relationship officers/managers average of benchmark banks. These
and, staff processing the business mandates. include, but not limited to, liquidity
v. Ensuring the Bank's financing and investments are geared towards ratios, deposit concentration limits,
contribution to the real economy in an ethical manner that open-position limits and
transcends business profits. provisioning policies.
vi. Risk related issues are taken into consideration in all business iv. Primary Shari'ah screening
decisions. The Bank will always strive to maintain a conservative mechanisms are put in place in
balance between risk and revenue considerations and in Investment Appraisal Memos
consonance with the import of Islamic Jurisprudence. (IAMs) and careful checks
vii. Risks are reported openly and fully to the appropriate levels once conducted in the pre-disbursement
they are identified. phase by screening contracts and
invoices; due process in the
6 Jaiz Risk Appetite purchase and sale stage; and finally,
The Bank's risk appetite is set by the Board of Directors annually at a proper documentation to avoid any
level that minimizes erosion of earnings or capital due to avoidable losses Shari'ah violations.
- including income loss from non-compliance with Shari'ah, in its overall v. Periodic visitation, monitoring of sale
asset and liability portfolio in the banking and trading books, or from proceeds (receivables), account
frauds or operational inefficiencies. The Bank's appetite for risk is turnover monitoring and vigilance in
governed by investing in high quality risk assets measured by five Key the maturity diary is exercised by
Performance Indicators: relationship management as well as
supervised by risk officers to avoid
i. Ratio of Non-Performing Investment (NPI) to Total Investment ; past dues in sale transactions which
ii. Ratio of investment loss expenses to profit returns; are prone to investment income
iii. Ratio of investment loss provision to gross non-performing loss. Penalties have to be strictly
investments. realized from customers without
iv. Ratio of investment income loss (Balance sheet risk) due to any favor unless the reason for
Shari'ah violation to total investment income. lateness is not willful.
v. Ratio of penalty against sale based investments (Murabaha etc) to vi. The Bank aims at minimizing the
total Investment income following independent indicators of
excessive appetite for risk:
The broad objective is to be among the industry leaders with respect to a) Exception reporting by internal
(i) and (ii) above, and for (iii) to maintain a ratio that ensures that there control officers, auditors, shari'ah
are adequate provisions for all non-performing assets based on their auditors, regulators and external
levels of classification. In the case of (iv), due care is enshrined to make rating agencies.
transactions Shari'ah compliant before disbursement and (v), b) Adverse publicity in both local and
monitoring and investment supervision mechanisms shall be strictly international press.
followed in a post-disbursement environment, up to recovery. c) Frequent litigations.
d) Pay m e nt of f i n e s a n d ot h e r
i. Diversification targets are set for the investment portfolio and
regulatory penalties.
limits are also set for aggregate large exposures.
e) Above average level of staff and
ii. Losses due to frauds and operational lapses are pegged at a
customer attrition.
maximum of a specified percentage of gross earnings and in any
case must be lower than the industry average.
PAG E
30
7 Jaiz Risk Governance

In addition to the BRC, the following Board committees are also directly
Structure or indirectly responsible for reviewing and guiding risk management
7.1 Board of Directors functions.
The Board of Directors is ultimately
responsible for overall risk management i. Statutory Board Audit Committee (BAC)
of the Bank and for establishing and ii. Board Investment Committee (BIC)
monitoring the effectiveness of its Risk iv. Board Governance/Remunerations Committee
Management and Corporate
Governance frameworks. The following senior management committees are also directly or
indirectly responsible for examining and providing support to:
7.2 (Shari'ah) Advisory
Committee of Experts (ACE) Ÿ Executive Management Committee (EXCO)
The independent committee sits Ÿ Asset & Liability Committee (ALCO)
quarterly, endorses risk management Ÿ Management Investment Committee (MIC)
processes and reviews accounts, validates Ÿ Criticized Assets Committee (CAC)
products and services in line with shari'ah
principles, and their decision is final, 7.5 Risk Management Department
subject to the Financial and Regulatory The Chief Risk Officer, who heads the Risk Management Division
Advisory Committee of Experts (FRACE) reports directly to the Board Risk Committee, with a dotted line to the
of the CBN. MD/CEO. He is responsible for the establishment and maintenance of a
framework geared towards the enhancement of capacity to provide
7.3 Board Risk Committee (BRC) greater value to shareholders/stakeholders while effectively dealing with
The Board Risk Committee (BRC) is the risks and uncertainties associated with business to protect the Bank
responsible for all Material Risk, other from losses, thereby enhancing its competitive advantage.
than credit risk, which is managed by the The Risk Management Division of the bank is broadly arranged into the
Board Investment Committee. The following units -
purpose of the committee is to assist the
i. Investment (Credit) Risk Unit,
BOD in formulating strategies for
ii. Investment Monitoring Unit
Enterprise-Wide risk management,
iii. Market and Liquidity Risk Unit
evaluating overall risk faced by the bank,
iv. Operational Risk
aligning risk policies with business
v. Documentation and Other Unique Risks Unit (including Shari'ah
strategies, determining the level of risk
Non-Compliance)
which will be in the best interest of the
bank, and capital planning.
7.5a Credit Risk
Credit Risk is the risk of economic loss from default or changes in ratings
7.4 Board Investment Committee
or other credit events. In a typical NIFI, it is defined as 'the potential that a
(BIC)
The Board Investment Committee (BIC) counterparty fails to meet its obligations in accordance with agreed
is responsible for Credit Risk and is terms under a financial contract'. It arises principally from (i) Financing in
established as a standing committee with Bai' (sale) e.g. Murabaha, promise to buy, or deliver in Istisna' and Salam;
Primary role to effectively manage Credit (ii) leasing in Ijarah for rentals and leasing-to-own in Ijarah wa Iqtina' (iii)
Risk faced by the Bank and report to the Investing in business performance on PLS (profit & loss sharing) in the
BOD at regular intervals and effectively Musharakah and Mudarabah contracts. Credit risk can also arise as a
implement the BOD's strategy for Credit result of the crystallization of any off-balance sheet transaction.
Risk Management.
PAG E
31
The role of the Bank can be that of financier, supplier, Mudarib (fund The Bank actively uses in addition to
manager to Investment Account Holders) and Musharakah partners collateral Kafala (Guarantee from third
(customers). The bank principally concerns itself with the risk of party) and cash deposits to reduce its
counterparties' failure to meet their obligations in terms of receiving a credit risks.
deferred payment and making or taking delivery of an asset. A failure
could relate to a delay or default in payment, or in delivery of the In order to guard against liquidity risk,
goods/assets of Salam or Parallel Istisna`, entailing a potential loss of management has diversified funding
income and even capital. sources and assets are managed with a
view on overall liquidity in consideration
I. Due to the unique characteristics of each financing instrument,
of maintaining a healthy balance of liquid
such as the non-binding nature of some contracts, the
assets (i.e. cash and cash equivalents). The
commencement stage involving credit risk varies. Therefore,
market risks are managed on the basis of
credit risk is assessed separately for each financing instrument to
predetermined asset allocation across
facilitate appropriate internal controls and risk management
various asset categories and continuous
systems.
appraisal of market conditions for
ii. The Bank also considers other types of risks that give rise to credit
movement and expectation of foreign
risk. For example, during the contract life, the risk inherent in a
currency rates, bench mark profit rates
Murabaha contract is transformed from market risk to credit risk;
and equity exposures. To manage all
the invested capital in a Mudarabah or Musharakah contract will
other risks, the Bank has developed a
be transformed to debt in case of proven negligence or
detailed risk management framework to
misconduct of the Mudarib or the Musharakah's managing
identify and apply resources to mitigate
partner.
the risks.
iii. Adequate collateral with minimum coverage is taken in line with
the peculiarities of each transaction, as well as adequate We have carefully selec ted and
covenants and protections embedded in the applicable and accredited some professional valuers that
transaction-specific agreements. assist us in determining values of the
iv.. The Bank's Credit Risk unit verifies and manages the credit collateral we accept. We take into
process from origination to collection and recovery; monitoring consideration the Open Market Value
and controlling all such risks by adhering to sound policies and (OMV), Forced Sale Value (FSV) and
processes that have been laid down to guard against their (risk) Rental Value.
manifestation in compliance with the Shari'ah contracts' specific
risk as per best practice. In general, collateral types for our
consideration are as shown below;
7.5a(i) Collateral Policy to Mitigate Credit Risk Ÿ Cash-backed transactions
In an attempt to mitigate all credit risks associated with our Investment Ÿ Guarantees from other Financial
activities, at Jaiz Bank we employ series of policies to cushion those risks. Institutions.
One of the most common of these policies that is also Shari'ah Ÿ Legal Mortgage over properties and
compliant is accepting collateral in respect of financing to our customers. Mortgage Debentures
Ÿ Equitable Mortgage
As part of its overall risk management, the Bank uses various methods to Ÿ Inventory/Stock Hypothecation
manage exposures resulting from changes in credit risks, liquidity risks, Ÿ Corporate Guarantee/Negative
market risks (including profit rate risk, foreign exchange risk, and equity Pledge
price risk), and operational risks. The Bank seeks to manage its credit risk Ÿ Domiciliation of Receivables (at the
exposures through diversification of financing and investing activities to bank's discretion)
avoid undue concentration of risk with individuals and groups of
customers in specific locations or businesses.
PAG E
32
7.5b Market and Liquidity Risks 7.5c Operational Risk

The Market & Liquidity Risk unit monitors Operational Risk is defined as a risk of loss arising from failure in internal
disciplined risk taking within a framework processes, people, systems or external events. This includes legal risk but
of the well-defined risk appetite that excludes reputational and strategic risks.
enables the Bank to enhance
shareholders' wealth while retaining its The responsibility of Operational Risk in Jaiz Bank is to prevent the
competitive advantage. occurrence and /or crystallization of such losses and/or to reduce the
impact and severity when they occur. The unit achieves this by creating
As a NIFI, the Bank is exposed to rate of
appropriate policies and platforms to reduce the occurrence of such
return risk in the context of its overall
incidences. Some of the objectives of operational risk are attained by
balance sheet exposures. An increase in
ensuring that trained and competent people – and appropriate
industry benchmark rates may result in
infrastructure, controls and systems – are in place to ensure the
Investment Account Holders' (IAHs)
identification, assessment and management of all substantial risks. An
having expectations of a higher rate of
operational risk framework is in place to guide the governance and
return on their deposits, failure of which
implementation of operational risk. The objectives of the framework
can turn to a Displaced Commercial Risk
are:
(DCR). In consideration, the Bank
i. minimize or eliminate losses attributable to operational and ensure
analyses the Rate of Return Risk and has
operational risk awareness and effective control of operations
developed a reporting format to the
ii. improve performance measurement and feedback
ALCO to identify, measure and mitigate
iii. embed early warning signals when exceptions occur.
the risk of DCR to protect the interest of
Investment Account Holders. The Bank
The bank is also exposed to risks relating to its fiduciary responsibilities
has also developed a policy on income
towards fund providers. Fiduciary risk arises from the failure to perform
smoothing plan through a Profit
in accordance with explicit and implicit standards applicable to an Islamic
Equalization Reserve (PER) to treat the
bank's fiduciary responsibilities, leading to losses in investments or failure
interest of shareholders and IAHs, as well
to safeguard the interests of the investment account holders. The
as approved the setting up of an
appropriate mechanisms are in place to safeguard the interests of all
Investment Risk Reserve (IRR) exclusively
fund providers. Where investment account holders' funds are
to subsidize potential future losses.
commingled with the bank's own funds, it is ensured that the basis for
Liquidity Risk is the risk that the Bank does asset, revenue, expense and profit allocations are established, applied
not have sufficient financial resources to and reported in a manner consistent with the bank's fiduciary
meet its obligations as they fall due, or will responsibilities as approved by the regulatory authorities.
have to meet the obligation at excessive
cost. This risk arises from mis-matches in The basic tools of operational risk management i.e. the Risk Register;
the timing of cash flows. Funding risk (a Risk Control Self-Assessment (RCSA); Key Risk Indicator (KRI), Issues &
form of liquidity risk) arises when the Action Plan reporting and Loss Trend reporting have been
liquidity needed to fund illiquid asset incorporated to engender seamless reporting, analysis, mitigation and
positions cannot be obtained at the eventual prevention of operational risk losses that may be inherent in
expected terms and when required. the system. The Bank is ISO-certified for business continuity;
information security; and payment card security as follows.
As a protective measure against liquidity
risk, the Bank solicits and attracts various Ÿ ISO27001
sources of funds to channel to its Ÿ ISO22301
financing and investment activities in Ÿ ISO20000
Shari'ah compliant instruments from the Ÿ Payment Card Industry Data Security Standard – (PCIDSS)
money and capital markets, where
available.
PAG E
33
7.5d Documentation and Other Unique Risks
Some progress have been achieved in the
Shari'ah Non-Compliance risk is the risk that arises from failure to availability of a Shariah-compliant lender-
comply with the rules of Shari'ah and its principles as determined by the of-last-resort facility that is provided by
Bank's Advisory Committee of Experts (ACE) and the Central Bank's the Central Bank/monetary authorities
Financial Regulatory Advisory Council of Experts (FRACE). Shari'ah (the CBN Non-Interest Note). Equally
compliance is critical for NIFIs' operations and such compliance important is the limited coverage of the
requirements must permeate the organization's products and activities. Nigerian Deposit Insurance Scheme for
The Bank is strictly determined to comply with Islamic commercial Profit-Sharing Investment Accounts
jurisprudence in all its activities. (PSIA). The Federal Government issued
the 1st sovereign Sukuk in the 4th quarter
Other unique risks are exclusively associated with NIFIs which the Bank
of 2017, the second issued in December,
manages through effective monitoring and complying with pre- and
2018 and the third Sukuk in May 2020,
post-disbursement modalities.
These sukuk issuance have greatly aided
i. Risk of continuity of usufruct in Ijarah since a fundamental ethical
the bank in placing its idle funds in a
axiom in Ijarah is that “rent is a price of usufruct; it is due as long as
shari'ah-compliant instrument. The bank
usufruct exists”.
actively anticipates the development of an
ii. Reputational risk due to breach of Shari'ah compliance which may
active secondary capital market to serve
result to loss of shareholders and IAHs' confidence.
as additional window for managing
iii. Ownership Risk which is that risk associated with owning a
liquidity.
property, asset or commodity especially in Murabaha and Ijarah
modes. The unavailability or limited supply of the
iv. Legal, fiduciary, regulatory and strategic risks are also managed aforementioned instruments or market
appropriately. mechanisms in many jurisdictions impacts
on a NIFI's liquidity management and
7.5e Rate of Return Risk leaves a huge idle fund which generates
A greater portion of investment funds raised by NIFIs is based on the no income. This may result, at times, in
Mudarabah contract, which is a partnership between 'work' and 'capital' the returns earned on its IAH funds being
in which the capital provider (Rabb-ul-Mal) is exposed to losses of their uncompetitive compared to those being
capital, while the provider of work (Mudarib) is exposed to losing its offered by its competitors. This leads to
time and effort. The contract thus involves profit-sharing for both the Rate of Return Risk, which is a
partners and loss-bearing for the provider of capital. Under the particular problem with respect to funds
Mudarabah contract, the IAHs agree to participate as Rabb-ul-Mal in the of Unrestricted Investment Account
financial activities undertaken by the NIFI as Mudarib, and to share the Holders (UIAH), who typically may
profits generated from financing and investment activities based on a withdraw their funds at short notice
contractually predetermined profit-sharing ratio. subject to loss of profit share. In such a
As capital owners, IAHs are liable to bear the losses arising from the scenario, rate of return risk exposes the
assets funded by their deposits, except in the case of fraud, misconduct, NIFI to withdrawal risk – namely, the risk
negligence, or breach of contracted terms and conditions by the NIFI. that their UIAH may withdraw their
funds at short notice and place them with
Under the Mudarabah contract, the IAHs therefore bear the other Banks that offer better expected or
commercial risk associated with the investment financed by the funds actual rates of return. If unmitigated,
provided by them. Concurrently, the Bank is responsible for managing UIAH withdrawals can reach systemic
the investment of assets and is under a fiduciary obligation to safeguard proportions and become a cause for
the interests of the IAHs through the establishment of sound and concern on the part of both the NIFI and
prudent policies in the management of the investments funded by IAHs. supervisory authorities.
However, NIFIs are faced with a number of limitations while managing
funds provided by the IAHs.
PAG E
34

Displaced Commercial Risk(DCR) refers Investment Accounts (UIA) and Restricted Investment Accounts
to the risk (i.e. volatility of the stream of (RIA). In managing UIAs, a NIFI has full discretion to utilize the funds
profits) arising from assets managed on for the provision of finance and/or investments as UIAHs provide
behalf of IAHs which is effectively funds without specifying any restrictions as to where, how or for
transferred to the NIFI's own capital what purpose the funds should be invested, provided that they are
because the NIFI may follow the practice Shari'ah compliant and are within the standards of banking
of forgoing part, or all of its Mudarib's prudential and due diligence guidelines.
share of the profit on such funds, and/or
making a transfer to UIAHs out of the A common practice in NIFIs is to hold UIAs on Mudarabah basis and
shareholders' investment profit as a hibah RIAs on Wakalah basis, which is off-balance sheet by its nature and
(gift), when it considers this necessary. known as Wakalah Investment Deposit (WID). Qard-based current
deposits which are by nature demand deposits, do not concern profit
In the absence of smoothing mechanisms, pay-outs, thus are excluded from the income smoothing group.
the rate of return paid to the UIAHs may
In principle, smoothing applies to both UIAs and shareholders' equities,
thus be “smoothed” at the expense of the
but in practice, it is generally found in connection with UIAs since they
profits attributable to the NIFI's
are considered a Shari'ah-compliant substitute for conventional
shareholders.
deposits.
In addition to the effects on profitability
8 Risk Concentration (users/providers of fund)
and the limitations on liquidity
Concentrations arise when a number of counter parties are engaged in
management, a major cause of DCR is the
similar business activities, or activities in the same geographical location,
Rate-of-Return risk. The Rate-of-Return
or have similar economic features that would cause their ability to meet
risk is the risk of facing a lower rate of
contractual obligations to be similarly affected by changes in economic,
return on assets than that currently
political or other conditions. Concentrations indicate the relative
expected by depositors from other
sensitivity of the Bank's performance to developments affecting a
competitors. For instance, NIFIs may have
particular industry, geographical location or financing products.
invested UIAH funds into relatively long
maturity assets such as long-maturity
9 Jaiz SmoothingTechniques
Murabaha or other fixed sale products As per industry practices and guidance note on the practice of
and thereby have locked in lower rates of smoothing the profit pay-outs to IAHs in order to mitigate withdrawal
return on assets than those currently on risk, NIFIs resort to various smoothing techniques, each taking different
offer in the market. DCR results when forms and therefore entailing different legal and governance
there is pressure on the NIFI to match the consequences for the NIFI. The basic purpose of smoothing is to give
market expectations of UIAHs. better rates of payout to UIAHs in periods when assets financed from
Non Interest Financial Institutions (NIFIs) UIAH funds fail to generate competitive returns vis-à-vis competitors'
have three main types of fundings as distributable return. In addition, some NIFIs are also involved in the
summarized below; practice of building separate reserves for covering losses on the UIAHs'
i. Equity investment.
ii. Demand deposits based on “Qard
hassan” which receives no return, and The smoothing methods used by NIFIs in various jurisdictions entail
are repayable in full on demand, and mitigation of DCR by the use of reserves. DCR occurs when NIFI
iii. Investment accounts which are effectively transfer risk (i.e. volatility of the income stream) arising from:
mainly based on Mudarabah
principles. Investment accounts are i. A NIFI may forgo or give up part or the entire Mudarib's share of
divided into two types: Unrestricted profit earned on UIAH funds. Normally, in this case, the contractual
PAG E
35
Portfolio Segmentation
percentage of the Mudarib's share is established at a high level, so as
to provide flexibility in setting the percentage share for any Based on shared credit risk
particular year. characteristics, exposures in the Bank's
ii. Alternatively, even when the contractual distribution of profit credit portfolio were grouped into 3
between the Mudarib and the UIAH is set at a moderate level, the segments for which separate models
directors may decide to give up a part of the profit due to the Bank were developed: Corporate, Retail and
to the UIAH, in order to avoid withdrawal risk. Off-balance sheet.
In both cases, a NIFI may make a transfer from the shareholders' current Stage transfer criteria
or retained profits to the UIAH on the basis of Hibah. This of course Assumptions for assessing Significant
requires an authorization from the general assembly in its annual Increase in Credit Risk were developed
meeting while at the same time; it may not require any amendment or and utilized in classifying different
change in the contractual relationships with the UIAH. exposures into Stage 1, Stage 2 and Stage
3 buckets.
Methods by which DCR is mitigated by the Bank may include the
following: Estimation of Probability of Default
i. Establish a reserve called a Profit Equalization Reserve (PER) by A robust model for the estimation of
setting aside amounts from the investment profits before allocation Lifetime PDs was developed by assessing
between the shareholders and the UIAH i.e. before the calculation rating transition using historical data of
of the NIFI's Mudarib share of profits. Funds from this PER are used five (5) years per investment product
in bad years to supplement the return which is distributed to the type. Forward looking information was
UIAH. incorporated using a regression model
ii. Maintain a reserve called an Investment Risk Reserve (IRR) by that simulates the expected PD term
setting aside amounts from the investment profits attributable to struc ture under three distinc t
the UIAH, after deducting the NIFI's Mudarib's share of profits. The macroeconomic scenarios.
IRR can be used only to cover losses on the capital or principal of
UIAH deposits. The use of the IRR mitigates withdrawal risk and Estimation of Exposure at Default
reinforces the effect of the PER. The EAD model estimates the expected
outstanding balance at each point in time
Jaiz Bank has a framework in place to adopt these two mechanisms i.e., based on the outstanding balance as at
Profit Equalization Reserve (PER) and Investment Risk Reserve (IRR) to the reporting date, nature of the
protect both shareholders and investment depositors (UIAHs). produc ts, contrac tual repayment
structures, foreign currency, prepayment
10 IFRS 9 Implementation rates, and moratorium concessions. For
Jaiz Bank has adopted IFRS9 for the computation of Expected Credit revolving facilities such as Murabahah
Loss on its financial instruments. The impact assessment has been products and similar products, the
undertaken and reviewed and all necessary adjustments to the system undrawn portion is treated under the off-
are being implemented. Model documentation has been approved and balance sheet portfolio.
appropriate credit models and financial policies have been developed. In
developing the ECL models, we adopted the following steps: Estimation of Recoverable Amount
The recoverable amount per exposure
Data Preparation
was obtained at each point in time by
The first step was to prepare the provided data based on IFRS 9
segmenting the collaterals by type (with
requirements. Activities in this step included but not limited to the
mortgages further segmented based on
exclusion of bank charges from the loan book and allocation of shared
location), and projecting future values per
collateral values for the same obligor based on exposure amounts.
collateral type based on historical growth
rates, forced sale haircuts, perfection
status, expected time to recovery and
PAG E
36

direct costs of recovery (including internally-defined thresholds for turnover and balance sheet size.
add i t i o n a l co s t fo r u n p e r fe c te d II. Retail: This segment of the portfolio contains loans and advances to
collaterals). The model also includes individuals and entities classified by the Bank as non-corporate.
unsecured recoveries based on estimated III. Off-balance sheet: This segment of the portfolio contains
historical recovery rates investments in resulting from Guarantees, Letters of Credits and
Undrawn Commitments under Murabahah facilities
Estimation of Loss Given Default
The LGD at each point was estimated as a 10.3 Default Definition
In accordance with IFRS 9 standard, the Bank considers default for the
function of the EAD and the recoverable
purpose of stage classification. Facilities that are more than 90 days past
amount. Assumptions were made for the
due are classified as being in default. The implication of this is that, if there
LGD for unsecured exposures based on
is at least one default event for a client on one of his exposures, all other
the BASEL convention and peculiarities of
exposures to the client are considered to be in default.
the Nigerian operating environment.
10.4 Development of staging criteria
Estimation of ECL Probability-Weights In applying IFRS 9, it is critical to ascertain whether the credit risk of a
The probability weights of each loan or receivable has increased significantly relative to the credit risk at
macroeconomic scenario was the date of initial recognition. This is the basis with which an entity may
determined by analyzing the NSE All change its calculation of impairment from 12 month ECLs to Lifetime
Share Index volume over a select period. ECLs. To determine whether such an increase has occurred, an entity
The probability of the upturn and must consider reasonable and supportable information that is available
downturn scenarios were determined by without undue cost or effort, including information about the past and
considering periods of outlying index forward-looking information.
values outside of a specified base Additionally, the CBN Guidance note on IFRS 9 implementation advises
threshold. banks to consider quantitative, qualitative and 'backstop' indicators in
assessing significant increase in credit risk. Four different indicators are
10.1 Final ECL Computation implemented in this model, and they are based on:
The resultant ECL is a product of the a) Days past due
EAD, LGD and PD calculated based on b) Prudential classification
the probability weight s of each c) Forbearance (Restructured) Credit rating migration
macroeconomic scenario. To account for
the time value of money, the ECL was also While IFRS 9 allows the assessment of significant increase in credit risk to
discounted to present value using the be carried out individually or collectively for financial assets with
Effective Rate of Return of each homogeneous risk characteristics, this model adopts an individual
exposure. assessment method to enable a granular view of the loss allowance
across the portfolio. Each indicator is explained in detail below.
10.2 Portfolio Segmentation
In measuring impairment under the IFRS
Days Past Due (DPD): This classification is based on the number of days
9 Standard, facilities with shared credit
from a contractual repayment date after which the obligor has not paid
characteristics may be grouped and
the contractual repayment amount. In deriving this classification, the
assessed in distinct portfolios. To achieve
following thresholds were applied:
this, all the Bank's financial assets under
the scope of IFRS 9 have been segmented Stage Classification Days Past Due
into three categories namely: Stage 1 Less than 30 days
I. Corporate: This segment of the Stage 2 Between 30–90 days
p o r t fo l i o c o n t a i n s l o a n s t o Stage 3 Above 90 days
Corporate, Commercial and Public
Sector entities grouped based on
PAG E
37
There are instances where expired investments are classified as classification value is determined to be the
performing. The model has been adjusted to map to stage 3, all model classification of each obligor.
investments that expired 90days before the reporting date. Going
forward, the Bank shall put in place adequate system to accurately e. Classification override:
compute days past due of investments. There are specific instances where the
Bank may possess alternate information
a) Prudential Classification: that defines an exposure's stage
In staging its financial assets, the Bank also considers CBN prudential classification, despite the resultant model
classification as shown below: classification. For such instances, an
option has been provided in the model to
Stage Classification Prudential Classification provide a stage classification based on the
Stage 1 PERFORMING Bank's expert judgement that will be
assigned to the exposure irrespective of
Stage 2 WATCHLIST
the classification based on the model's
Stage 3 SUBSTANDARD, indicators.
DOUBTFUL, LOST
f. Final Stage Classification:
b) Forbearance Flag: In instances where the Bank provides a
The stage classification is also defined based on whether or not a facility classification override, that becomes the
has been restructured due to forbearance at any point since initial final stage classification. Otherwise, the
recognition. In deriving this classification, the following was applied: model classification is the final stage
classification.
Stage Classification Forbearance Flag
Stage 1 No Forbearance
Stage 2 Forbearance 11 Capital Management
granted The Bank maintains sufficient capital
resources to support its investment
c. Credit Rating: credit business and general business
This classification indicates the obligor's credit rating and it takes into growth. Capital adequacy is reviewed
consideration the initial credit rating and the credit rating as at the periodically alongside the monitoring and
reporting date. reporting of changes to the capital
forecasts. The Board will consider the
Stage Classification Credit need to change its capital forecasts and
Rating Migration capital plans based on these reviews.
Stage 1 Rating downgrade The Bank holds capital at a level that the
of not more than2 Board considers necessary, and the
notches since initial a s s e s s m e n t of m i n i m u m c a p i t a l
recognition requirements is a combination of
Stage 2 Rating downgrade regulatory requirement, and sound
of more than 2 judgment exercised by the Board. In
notches since initial assessing the adequacy of its capital, the
recognition Bank considers its risk appetite, the
Stage 3 Default material risks to which the Bank is
exposed, and the appropriate
d. Model Classification: management strategies for each of the
The model classification, is the resultant stage classification based on the material risks, including whether or not
four indicators outlined above (a, b, c and d). The maximum stage capital provides an appropriate buffer.
PAG E
38
12 StressTesting 13 Write-off and Recoveries

The Bank conducts stress test on its After full evaluation of a non-performing exposure, in the event that
capital adequacy and liquidity position on either one or all of the following conditions apply, such exposure shall be
quarterly basis under a range of scenarios. recommended for write-off:
The scenarios are agreed by the ALCO
i. continued contact with customer is impossible;
and reviewed by the EXCO, and regularly
ii. recovery cost is expected to be higher than the outstanding debt;
updated to reflect the Bank's risk profile
iii. amount obtained from realisation of investment collateral security
and external risks, including risks
leaves a balance of the debt; or
associated with the economic cycle.
iv. it is reasonably determined that no further recovery on the facility
is possible.
Where applicable, the stress tests cover
all relevant risks to which the Bank is All investment facility write-offs require endorsement at the
exposed, for example, capital adequacy appropriate level as defined by the Bank. Similarly, Investment write-off
stress tests based on macro-economic approval shall be documented in writing and properly signed by the
scenarios would be geared towards approving authority. Whenever amounts are recovered on previously
analysing the impact on both credit and written-off investment exposures, such amount recovered is recognized
market risk exposures. as income on a cash basis only.
Sirajo Salisu (Ph.D)

Chief Risk Officer
Governance
PAG E
40
Board of Directors
The Board of the Bank is made up of veteran professionals who

possess the requisite skills, knowledge and experience to bring to
bear independent judgment on the deliberations and decisions of
the Board. The Board headed by the Chairman consists of 15
members made up of 12 Non-Executive Directors and 3
Executive Directors as set out below.
Two of the Non-Executive Directors are Independent Directors appointed based on
criteria laid down by the Central Bank of Nigeria's Guideline on Independent
Directors of Banks in Nigeria. The position of the Managing Director and Chairman
are held by separate persons with clearly defined roles.
Alhaji (Dr.) Umaru Abdul Mutallab, CON - Chairman
Prominent business leader and former Minister of the Federal Republic of Nigeria,
Chartered Accountant and Banker; former Executive Vice Chairman and Managing
Director of United Bank for Africa (UBA). Also former Chairman of First Bank of
Nigeria Plc, the oldest and biggest bank in Nigeria.
He is a holder of one of the highest national awards in Nigeria –

Commander of the Order of the Niger (CON). Abdul Mutallab has also
been conferred with the Fellowship of both the Association of Chartered
Certified Accountants (ACCA) of UK and the Institute of International
Bankers Association (FIBA) of the United States of America.
PAG E
41
Board of Directors
Hassan Usman FCA. - Managing Director/CEO
A trained Accountant, Mr. Hassan Usman graduated with a first class degree in
Accounting in 1985 from Ahmadu Bello University, Zaria, Nigeria and became an
associate Member of ICAN in 1989. He obtained a Post Graduate Diploma in
Management in 1995 from Maastricht School of Management, Netherlands.
Mr. Usman also attended the Oxford University Advanced Management

Programme in 2002. He worked as the Financial Controller of New Nigerian
Development Company Limited, Kaduna until he joined NAL Merchant Bank
PLC where he served as the Financial Controller and Treasurer respectively
between1996-2001.
Mr. Usman had a stint with Inland Bank where he served as General Manager, Banking Services before re-joining NAL
Bank as Deputy General Manager and Head, Business and Financial Advisory Group. He is a Fellow of the Institute of
Chartered Accountants of Nigeria (ICAN). He was appointed as the Managing Director of Jaiz Bank Plc by the Board of
Directors in May 2016.
Mahe Abubakar - Deputy Managing Director

A seasoned banker of standing repute with over 20 years cognate banking experience,
Abubakar Mahe currently steers the business development drive of Jaiz Bank Plc. Prior to
joining Jaiz Bank, Mahe was the Group Zonal Head of Zenith Bank Plc in charge of the
Northwest region.
Before joining the banking sector in 1994, Mahe worked with the Nigerian
International Securities Limited (NISEL), a member of Nigerian Stock Exchange
and a subsidiary of Continental Merchant Bank Plc from 1991 to 1994 having
qualified as a dealing clerk of the Nigerian Stock Exchange. Between 1990 and
1991, he worked as the dealing clerk/branch head of the Lagos office of the
Gidauniya Investment & Securities Limited.
Born in the ancient city of Kano, Mahe obtained both Bachelor and Master's of Science Degrees in Business
Administration from Ahmadu Bello University in 1984 and1987 respectively.
He attended several trainings in and outside Nigeria including Wharton School, Pennsylvania, USA; London Business
School; and Lagos Business School. He was appointed as the Deputy Managing Director by the Board of Directors in
May 2016
Abdulfattah O. Amoo - Executive Director Operations/CFO

AbdulFattah Amoo is a shrewd professional banker, astute strategic planner and executor.
He is well versed in both Islamic and Conventional banking business models.
He possesses almost 3 decades cognate experience which cuts across professional

Accounting practice, Banking and Finance, out of which almost 17 years has been
spent at senior management/executive positions.
AbdulFattah was instrumental to setting up of the Financial Control function of

CSL Group; managed the Operations, of the South-South/South-East regions,
e-Business Group, Retail Banking and Non-Interest Banking (Sales) business
group of Sterling Bank PLC. He is skilled in Talent Management, Strategic
PAG E
42
Board of Directors
Networking and People Management, among others. AbdulFattah is a Fellow of the Institute of Chartered Accountants
of Nigeria (ICAN) and an Associate member of the Chartered Institute of Taxation (CITN).
He holds a B.Sc. in Economics and Masters in Business Administration from Edo State University (now Ambrose Alli
University) and has attended several local and international courses in strategic management, leadership, etc.
AbdulFattah joined Jaiz Bank on 6th November 2017.
Alh. (Dr.) Aminu Alhassan Dantata, CON - Non-Executive Director

A renowned business man, he began his career as produce buyer in 1949 in the family
business of Alhassan Dantata and Sons Limited. He became the Chairman and
Managing Director of the Company, in 1960, a position he holds till date.
Dr. Dantata was a member of the Steering Committee of the Nigerian Industrial
Development Bank (now Bank of Industry, BOI), and served as a Director of
the Bank between 1962 and 1966. He has led several trade missions to
several countries across the world. He is a holder of one of the highest
national awards in Nigeria – Commander of the Order of the Niger
(CON).
Alhaji (Dr.) Muhammadu Indimi, OFR - Non-Executive Director
He is a distinguished and highly successful businessman. Dr. Indimi is the sole Founder
and Chairman of Oriental Energy Resources Limited. He has over 20 years
experience in the Nigerian Upstream Oil and Gas sector. Dr. Indimi is an astute
business man with notable presence in the international business arena. He also
serves as the Chairman of M & W Pump Nigeria Limited; which has partnered with
MWI Corp of Deerfield Beach, Florida. He also sits on the Boards of Arab
Contractors (OAO) Nigeria Ltd and Julius Berger Nigeria PLC.
He is a founder of many successful indigenous companies and sits on the

board of several privately owned companies encompassing all sectors of
the economy. Dr. Indimi is a humanitarian and a philanthropist and has received numerous awards as well as honorary
doctorate degrees from notable Universities in Nigeria, Ireland and the United States.
Alhaji Mukthar Sani Hanga - Non-Executive Director
He is a renowned business man and an administrator.
He was one time:

Ÿ Managing Director of Hanga Line Limited,
Ÿ Special Adviser to Governor Kabiru Gaya of Kano State on Sports and
Youth Development
Ÿ Member Board of Directors NISER Ibadan
Ÿ Chairman NYSC Committee, Kano, Chairman
Ÿ Kano State Export Actualization Committee
Ÿ Director, Northern Nigeria Investment Limited, Kaduna.
PAG E
43
Board of Directors
Alhaji (Dr.) Musbahu Mohammad Bashir - Non-Executive Director
He is the Chairman of Althani Group of Companies, and Cobalt International Services

Limited since 2004. He is also a Director in Bento Drill Nigeria Limited, Offshore
Technologies International Limited, and Resource capital group.
Cobalt International Services Limited is a pre-shipment inspection agent for dry

goods and bulk liquid cargoes. They are currently inspection agents for oil
and gas exports in the country.
Earlier on, Alhaji Bashir worked with Hammad Development Facilities in

1987 and Jadai Diversified Services in 1989.
He obtained a BBA in Business Management from the American University in 2002 , an Advanced Diploma in Business
Management in 1998 from Tafawa Balewa University, Abuja campus, and a National Diploma in Irrigation Engineering
from the Kaduna Polytechnic 1987. He was recently conferred with a Honourary Doctorate Degree by the Igbinedion
University, Okada, Edo State, Nigeria.
HRH, (Engr.) Bello Muhammad Sani, OON - Non-Executive Director
He is a holder of Bachelor's Degree in Engineering from the prestigious Ahmadu Bello

University, Zaria, Nigeria. He is also a holder of M.Sc (Civil Engineering) from the
University of Dundee Scotland – 1977.
HRH is a fellow of Nigerian Society of Engineers (FNSE), Council for the

Regulation of Engineers in Nigeria (COREN) and an Officer of the Order of
the Niger (OON) conferred upon him by the former President Olusegun
Obasanjo on the 10th of December 2003 in recognition of his
achievements.
He is currently the Emir of Bakura, Zamfara State, Nigeria.
Prior to becoming the Emir, HRH held several notable positions such as;
Ÿ Public Engineer in the defunct North Western State Ministry of Works, Transport and Housing, Sokoto in 1974 –
1975,
Ÿ Principal Engineer of Ministry of Works and Transport Sokoto in 1979-1980
Ÿ Acting Permanent Secretary of Ministry of Works and Housing, Sokoto in 1981.
Ÿ Chief Civil Engineer and the Chief Building Engineer in 1981-1983 Ministry of Works and Transport Sokoto.
He held positions in some of the most prestigious corporate, private and public organizations in Nigeria, including
Director, Building and Engineering Services, Central Bank of Nigeria (CBN) between 1989 -1996, Senior Assistant
General Manager, Union Bank of Nigeria (formerly Barclays Bank).
PAG E
44
Board of Directors
Mallam Falalu Bello, FCIB, OFR - Non-Executive Director

A 1 97 8 la w g rad u ate fro m A h m ad u B e llo U n ive rsity, Z a ria , N ig e ria . H e s ta r te d h is le g a l

c a re e r w ith th e K ad u n a S tate G o ve rn m e n t a s M a g istrate II a n d su b se q u e n tly m o ve d to
N o r th e rn N ig e ria In ve stm e n t C o m p a n y L im ite d a s S e n io r E x e c u tive /A c tin g C o m p a n y
S e c re ta r y. H e w a s late r a p p o in te d K ad u n a S tate G o ve rn m e n t C o m m issio n e r fo r Trad e
a n d In d u str y.
H e w a s a p p o in te d M a n a g in g D ire c to r /C E O o f H a b ib N ig e ria B a n k L im ite d in

1 9 9 4 u n til 1 9 9 8 w h e n h e w a s a p p o in te d M a n a g in g D ire c to r/C E O o f In te rc ity
B a n k P lc . H e re sig n e d a s Vice C h a irm a n /M a n a g in g D ire c to r in 2 0 0 1 .
In 2001, he was appointed as Managing Director of Nigerian Agricultural Development Bank Limited and subsequently,
Managing Director of Unity Bank. He also served as the Chairman of Mainstreet Bank. Mallam Bello holds the National
honour of the Officer of the Federal Republic (OFR).
Alhaji (Dr.) Umaru Kwairanga - Non-Executive Director
Umaru Kwairanga (Sarkin Fulanin Gombe) holds a B. Sc. (Hons) in Business

Administration, MBA from the University of Maiduguri, M. Sc. Finance & Governance from
Liverpool John Moores University U. K. (LTMU) Liverpool United Kingdom and an
Honorary Doctorate Degree by IgbinedionUniversity, Okada, Edo State Nigeria.
He is a fellow of the Institute of Directors (IoD), Certified Pension Institute of

Nigeria (CPIN) and Chartered Institute of Stockbrokers of Nigeria. He is a
well travelled executive with vast knowledge of corporate governance
practices with over 20 years cognate experience in banking, corporate
finance, as well as an active player in the Capital Market.
He is Chairman of the Board of Axa Mansard Pensions and serves a director on the boards of Microfinance Bank Ltd,
Waila, Kano Electricity Distribution Company (KEDCO) and the Nigeria Exchange Group Plc. He is currently the
MD/CEO of Finmal Finance Services Limited.
He is also on the Council of the Certified Pension Institute of Nigeria (President); and Chartered Institute of
Stockbrokers. He was a former Chairman of Ashaka Cement Plc; and former Director of Central Securities Clearing
System Plc.
Alhaji Kwairanga has attended several courses and training programs in fields relating to Finance, Investment and Money
Market in reputable institutions including Harvard Business School, New York, Institute of Finance and Euro Money. He is
a Professional Certificate holder of the Chartered Institute of Stockbrokers, Certified Pension Institute of Nigeria and the
Abuja Securities and Commodity Exchange. He has been Managing Director of a top notch stockbroking firms for over a
decade and a Director in several blue-chip organisations.
He was a member of the Nigerian Vision 20:2020, National Technical Working Group (NTWG) on Public sector
Thematic Area. He has an extensive senior level management experience and impeccable ethics and integrity.
PAG E
45
Board of Directors
Mr. Seedy Mohammed Njie - Non-Executive Director
Mr. Seedy Mohammed Njie holds a Masters' degree in Business Administration
from the School of Oriental & African Studies, University of London. He is a fellow
of the Association of Chartered Certified Accountant – UK as well as an Associate
Professional Risk Manager amongst other professional certifications.
Mr. Njie started his career in 1999 as an Assistant Audit Manager at

Deloitte & Touche, the Gambia. He continued his career with Islamic
Development Bank, Jeddah, Saudi Arabia in 2005, where he had
served in different capacities of the Bank till date
He has had 20 years work experience in Audit & Advisory services

as well as Banking services. He also had versed knowledge of Islamic Finance having worked with the Islamic
Development Bank for a period not less than 15 years.
Mallam Nafiu Baba-Ahmed, mni - Independent/Non-Executive Director
He is a 1978 law graduate from Ahmadu Bello University, Zaria, Nigeria. He started his
banking career as a legal officer with United Bank for Africa Plc in 1980 from where he
proceeded to Nigeria Merchant Bank in 1982. He was an Assistant General
Manager/Company Secretary & Legal Adviser with First Interstate Merchant Bank
Limited and subsequently, became a Director/Legal Adviser & Board Secretary at
Nigerian Deposit Insurance Corporation (NDIC).
He was also, a Director representing CBN/NDIC on several banks that were taken
over by both the Central Bank of Nigeria/NDIC for turn-around. He has attended
several professional courses abroad including those of Queen Mary College,
University of London, in International Commercial Law, Institute of Management Development (IMD), Switzerland, as
well as Senior Executive Development Program in Kuala Lumpur, Malaysia.
ProfessorTajudeen A.Adebiyi - Independent/Non-Executive Director
He was the Treasurer and Investment Consultant to OPEC Fund (Vienna, Austria)
between 2003 and 2005, where he managed approximately, US $5 billion investment
portfolio. He is a holder of MBA (Finance, Accounting and Quantitative Analysis) and, a
Ph.D. in Banking & Finance from the University of Maryland, USA.
Prof. Adebiyi spent 20 years (1983-2003) at the Islamic Development Bank,

Jeddah, serving at different levels in project management, treasury, financial
analysis and portfolio management.
He is a visiting Professor of portfolio investment management and

quantitative analysis to the Bowie State University, Maryland, USA..
PAG E
46
Board of Directors
Alhaji Ibrahim Mamun Maude - Non Executive Director

Alhaji Maude holds a Master's degree in Banking and Finance from the Bayero
University Kano. He started his career after NYSC in 1979 as a Principal
Accountant at the Kaduna State Water Board. In 1985, he worked as the
Chief Accountant and Company Secretary of Funtua Cottonseed Crushing
Co. Ltd, Funtua.
Between 1989 and 2008. He served in various capacities at the Central Bank
of Nigeria, including Banking Services and Banking Supervision.
He is currently the Special Adviser to the Chairman of Oriental Energy

Resources Limited. He has had over 40 years work experience in Public Civil
Service, Banking & Insurance, and Oil & Gas sectors. He also has appreciable knowledge of Islamic Finance having
travelled locally and internationally to deliver lectures and papers on the subject.
“ Islamic finance is about ethics, integrity, accountability,

and social responsibility, it encourages business and
entrepreneurship purely on profit and loss sharing basis
and completely prohibits fixed income.
Sharing of risk and returns by Investors and
“
Entrepreneurs is an integral crux of Islamic finance
- Dr. Sheikh Ziyaad Muhammad

(Director, Islamic Finance Institute of South Africa).
PAG E
47
Advisory Committee of Experts (ACE)
Professor Monzer Kahf - Chairman,
He is a leading scholar, Professor and a Consultant in Islamic banking and finance. He has been
drafting and reviewing Shari'ah contents of finance agreements, by-laws and operational systems
for Islamic financial institutions in many countries around the world including USA, Canada,
Switzerland, Saudi Arabia and Trinidad. Prof. Kahf is currently a professor of Islamic Finance and
Economics at Qatar Faculty of Islamic Finance, Hamad University.
He served as a senior research economist at the Islamic Research and Training Institute of the
Islamic Development Bank (IDB), in Jeddah from 1985 to 1999.
He has written 38 books and published over 91 articles in English and Arabic on Trusts,
Awqaf, Zakah, Islamic Finance and Banking and other areas of Islamic economics. He
speaks English, Arabic and a little of French.
Dr. Muhammad Alhaji Abubakar - Member

Dr. Muhammad Alhaji Abubakar has over 20 years' experience in Islamic Scholarship. He obtained his
degree, M.A and Ph.D (in Islamic jurisprudence) from Islamic University of Madinah, Saudi Arabia.
He has published articles on Islamic commercial jurisprudence and other areas of Islamic law in
academic journals (local and international). He also published articles in some local dailies in Hausa
language. He attended conferences within and outside Nigeria, and actively engage in propagating Islam.
Dr. Muhammad speaks Arabic, English, Kanuri and Hausa. He is currently a lecturer at the
Department of Sharia, Faculty of Law, University of Maiduguri.
Sheikh Abdulwahab - Member

Sheikh Abdulwahab is a renowned Islamic Scholar and Preacher who has spent major part of his life in
teaching and preaching about Islam. Together with Late Sheikh Ja'afar Mahmud Adam, they have
contributed immensely in creating Islamic awareness within and outside the country.
He is a graduate of Darul Hadith in Makkah and Islamic University of Madinah, Kulliyatul Hadith Wa
Darasat al Islamiyya (Faculty of Hadith and Islamic Knowledge). He is the Chairman of Bin Baz
Foundation, Member, Shari'ah Commission of Zamfara State and member, National Supreme
Council for Islamic Affairs (NSCIA).
As part of his efforts towards propagation and development of Islam, Sheikh Abdulwahab has
written several books on various topics including but not limited to Fatwa on Marriage and
Divorce.
Dr. Ahmad Bello Dogarawa - Member

Dr. Ahmad Bello Dogarawa is an Associate Professor with the Department of Accounting,
Ahmadu Bello University, Zaria, Nigeria. He is an alumnus of Al-Azhar University, Cairo and
belongs to several professional bodies.
He has published more than 35 articles in academic journals (local and international),
presented over 50 papers at local and international conferences and published 6 Islamic
books in Hausa and English Languages.
He is a member, ABUTH Health Research Ethics Committee; and Member, League of

Imams, Scholars and preachers in the Sahel with headquarters at Algiers, Algeria.
48
Management Team
Management Team
49
PAG E
50
Management Team
Management Team
51
PAG E
52
Management Team
PAG E
53
Directors' Report
The Directors present their report together with the audited financial statements and auditors' report for the year
ended 31 December 2019.
1. Legal Form And Principal Activity

Jaiz Bank Plc was incorporated as a public limited liability company in 2003 and obtained a regional licence to operate as a
non-interest commercial bank on 10th November, 2011. The Bank subsequently commenced operation on January 6,
2012. The Bank was issued a National Banking licence by the Central Bank of Nigeria in May 2016.
2. Financial Summary
31st Dec. 2019 31st Dec. 2018
N’M N’M
Paid-up Share Capital 14,732.13 14,732.12
Risk Regulatory Reserve 2,155.15 1,619.34
Retained Earnings (4,081) (4,574)
Share Premium 627.37 627.36
Shareholders’ Funds 15,551.95 13,109.16
3. Business Review and Future Development

The Company carried on as a non-interest commercial bank in the year under review in accordance with its
Memorandum and Articles of Association. A comprehensive review of the business for the year and prospects for the
ensuing year is contained in the Managing Director's Report.
a. Changes on the Board

Two new Directors were appointed in the last quarter of 2019. Mr. Seedy Muhammed Njie was appointed to fill the
casual vacancy that was created by the resignation of Dr. Mohamed Ali Chatti who was representing the Islamic
Development Bank on the Board. The Islamic Development Bank had during the course of the year, informed the Board
that Dr. Mohamed Ali Chatti assumed higher responsibilities in their organization and therefore would be substituted by
Mr. Seedy Muhammed Njie.
Mr. Seedy Mohammed Njie holds a Masters' degree in Business Administration from the School of Oriental & African
Studies, University of London. He is a fellow of the Association of Chartered Certified Accountant – UK as well as an
Associate Professional Risk Manager amongst other professional certifications. Mr. Njie started his career in 1999 as an
Assistant Audit Manager at Deloitte & Touche, the Gambia. He continued his career with Islamic Development Bank,
Jeddah, Saudi Arabia in 2005, where he had served in different capacities of the Bank till date.
He has had 20 years work experience in Audit & Advisory services as well as Banking services. He also has vast
knowledge of Islamic Finance having worked with the Islamic Development Bank for a period not less than 15 years.
In line with the Bank's Board Members' Selection and Appointment Policy, the Board granted Alhaji (Dr.) Muhammadu
Indimi, OFR request for an additional seat. The Director subsequently nominated Alhaji Ibrahim Mamun Maude for
appointment as a Director. Alhaji Maude holds a Master's degree in Banking and Finance from Bayero University Kano.
He started his career after NYSC in 1979 as a Principal Accountant at the Kaduna State Water Board. In 1985, he
worked as the Chief Accountant and Company Secretary of Funtua Cottonseed Crushing Co. Ltd, Funtua. Between
1989 and 2008. He served in various capacities at the Central Bank of Nigeria, including Banking Services and Banking
Supervision.
PAG E
54
Directors' Report
He is currently the Special Adviser to the Chairman of Oriental Energy Resources Limited. He has had over 40 years
work experience in Public Civil Service, Banking & Insurance, and Oil & Gas sectors. He also has appreciable knowledge
of Islamic Finance having travelled locally and internationally to deliver lectures and papers on the subject.
Both Mr. Seedy Muhammed Njie and Alhaji Ibrahim Mamun Maude are now being presented for election.
b. Directors Retiring by Rotation

In accordance with the provisions of the Companies & Allied Matters Act, Alhaji (Dr.) Muhammadu Indimi, Prof.
Tajudeen Adebiyi and Nafiu Baba-Ahmed hereby retire by rotation. Being eligible, Alhaji (Dr.) Muhammadu Indimi
hereby presents himself for re-election. In the course of the period under review, the Director attended the Board and
Board Committee meetings where applicable. A record of his attendance is contained in the Corporate Governance
section of this Report. The profile of Alhaji (Dr.) Muhammadu Indimi is contained at page 42 of this Report. On the other
hand, Prof. Tajudeen Adebiyi and Nafiu Baba-Ahmed having successfully completed their full Nine (9) years term as
Independent Directors will not be presented for re-election.
c. Notification of Attainment of Seventy (70)Years of Age

In accordance with the provisions of the Companies & Allied Matters Act, the Directors hereby announce that Alhaji
(Dr.) Umaru Abdul Mutallab, CON; HRH. E ngr. Bello Muhammad Sani, OON; Alhaji (Dr.) Muhammadu Indimi, OFR and
Alhaji (Dr.) Aminu Alhassan Dantata, CON have attained the age of seventy (70) years and the approval of members for
Alhaji (Dr.) Umaru Abdul Mutallab, CON; HRH. Engr. Bello Muhammad Sani, OON; Alhaji (Dr.) Muhammadu Indimi,
OFR; and Alhaji (Dr.) Aminu Alhassan Dantata, CON to continue in office is hereby sought.
d. Directors Fees
The Board of Directors hereby retains their fees as approved at the last General Meeting.
e. Directors' Interest
The direct and indirect interests of directors in the issued share capital of the Bank as recorded in the register of
directors' shareholding and/or as notified by the directors for the purposes of sections 275 and 276 of the Companies
and Allied Matters Act and the listing requirements of the Nigerian Stock Exchange are stated below:
PAG E
55
Directors' Report
Number of Shareholdings
Dec. 31, 2019 Dec. 31, 2018
S/N Directors Direct Indirect Direct Indirect
1 Alh. Dr. Umaru Abdul Mutallab, CON 4,000,000,000 N/A 4,000,000,000 N/A
2 Alh. (Dr.) Aminu Alhassan Dantata, CON 1,565,310,516 3,904,369,327 1,567,310,516 3,904,369,327
(Dantata Invest.
& Sec. Co. Ltd)
3 Alhaji (Dr.) Muhammadu Indimi, OFR 3,233,813,044 N/A 2,733,813,044 N/A
4 Prof. Tajudeen A. Adebiyi 3,083,686 N/A 3,083,686 N/A
5 Mallam Falalu Bello, FCIB, OFR 12,496,750 40,000,000 12,496,750 40,000,000
(MBS Merchants
Ltd)
6 HRH (Engr.) Bello Mohammed Sani, OON, 12,500,000 N/A 12,500,000 N/A
7 Nafiu Baba-Ahmed, mni 2,300,000 N/A 2,300,000 N/A
8. Alh. (Dr.) Umaru Kwairanga 34,770,000 629,429,413 34,770,000 629,420,413
(Finmal Finance
Services Ltd)
9. Alh. Muktar Sani Hanga N/A 2,500,000,000 N/A 2,500,000,000
(Dangote Ind.Ltd)
10. Alh.(Dr.) Musbahu Muhammad Bashir N/A 2,200,000,000 N/A 2,200,000,000
(Althani Invest. Ltd)
11. Mr. Seedy Njie N/A 2,506,666,588 N/A 2,506,666,588
(Islamic Dev. Bank)
12. Mallam Hassan Usman, FCA 1,250,000 N/A 1,250,000 N/A
13. Mahe Mahmud Abubakar 3,441,526 N/A 200,000 N/A
14. AbdulFattah O. Amoo, FCA NIL N/A Nil N/A
15. Ibrahim Mamun Maude NIL 3,233,813,004 N/A N/A
Alhaji M. Indimi OFR
4. Employment and Employees

a. Employee Involvement and Training
It is the Bank’s policy to equip all employees with the skills and knowledge required for successful performance of their
jobs. This entails identifying the training needs of our employees and prioritising implementation of plans to address such
needs. In line with this, in the year under review, the Learning and Development interventions focused on both
Functional and Leaderships skills. In order to maintain a shared perception of our goals, we are committed to
communicating information to employees in a fast and effective manner. We consider this critical to the maintenance of
team spirit and high employee morale.
b. Employment Policy
The Company's recruitment policy, which is based solely on merit, does not discriminate against any person on the
grounds of Religion, Tribe, or Physical Disability.
PAG E
56
Directors' Report
c. Health Safety and Welfare at Work

Health and safety regulations are in force within the Bank's premises and employees are aware of existing regulations.
The Bank provides subsidy to all levels of employees for medical, transportation, lunch, as well as access to recreational
facilities to enhance their welfare and improve productivity. In response to the COVID 19 pandemic the Bank identified
Health and Safety Officers in all its branches and Head Office to educate staff on the COVID 19 guidance and
precautions.
The Bank operates a crèche facility at its Head Office for its staff with plans to extend to other locations in due course.
We actively promote wellness of our employees and have provided a gymnasium at our Head Office for use by all staff.
Fire prevention and fire-fighting equipment are installed in strategic locations within the Bank' premises. The Bank
operates a contributory pension plan in line with the Pension Reform Act for its employees.
d. Covid 19 Response
The novel Corona Virus Disease also known as COVID-19, is a pandemic that threatens to become one of the most
difficult tests faced by humanity in modern history. As confirmed cases of COVID-19 spread, it has the potential to take
lives, overwhelm health systems and trigger lasting geopolitical changes. The crisis pervades health, financial and social
realms of the entire world. The International Monetary Fund (IMF) says the global economy now faces its worst
downturn since the Great Depression.
As part of its robust operation risk management system, the Bank has taken adequate measures to paddle through the
pandemic. The measures and impact areas are detailed below:
Directors' Report
57
PAG E
PAG E
58
Directors' Report
a.)
from
b.)
scientists,
e. Gender Analysis
The average number and percentage of male and female employees during the year ended 31st December 2019 vis-à-
vis total workforce is provided below. The Board is however committed to gender balance and has thus resolved to take
the issue into cognizance in filling future vacancies.
Male Female Total Male Female
Number Percentage
Employees 418 134 552 76% 24%
Male Female Total Male Female
Number Percentage
Board 14 0 14 100% 0
Top Management 8 2 10 80% 20%
Total 22 2 24 90% 10%
5. Post Balance Sheet Events
There were no post balance sheet events which could have a material effect on the state of affairs of the Company as at
31 December 2019 or the profit for the year ended on that date that have not been adequately provided for or
disclosed.
6. Equity Range Analysis
Range Analysis as at December 31st, 2019
Range No of Holders Holder % Holders Cum Units Units % Units Cum
1 - 1,000 394 1.40 394 179,822 0.00 179,822

1,001 - 5,000 11,140 39.57 11,534 30,644,200 0.10 30,824,022
5,001 - 10,000 5,321 18.90 16,855 48,176,501 0.16 79,000,523
10,001 - 50,000 4,811 17.09 21,666 121,897,742 0.41 200,898,265
50,001 - 100,000 2,592 9.21 24,258 244,764,242 0.83 445,662,507
100,001 - 500,000 2,738 9.73 26,996 690,327,705 2.34 1,135,990,212
500,001 - 1,000,000 527 1.87 27,523 431,847,918 1.47 1,567,838,130
1,000,000 - 9,999,999,999 628 2.23 28,151 27,896,411,170 94.68 29,464,249,300
28,151 100.00 29,464,249,300 100.00
PAG E
59
Directors' Report
7. Substantial Shareholders
According to the register of members at 31st December, 2019, the following shareholders held more than 5.0% of
the issued share capital of the Bank:
S/N Name Holdings %

1. Mutallab Umaru Abdul 4,000,000,000 13.58%
2 Dantata Investment & Securities Limited 3,904,369,327 13.25%
3. Indimi Muhammadu 3,233,813,044 10.98%
4. Islamic Development Bank 2,506,666,588 8.51%
5. Dangote Industries Ltd 2,500,000,000 8.48%
6. Altani Investment Limited 2,200,000,000 7.47%
7. Dantata Aminu Alhassan 1,565,210,516 5.31%
8. Shareholding History
Authorized Share Capital Increase Issued & Fully Paid Capital Increase
Year Units From To Units From To Consideration
2003 2,500,000,000 - 2,500,000,000 2,500,000,000 - 2,500,000,000 Cash

2004 - - - - - - -
2005 - - - - - - -
2006 13,000,000,000 2,500,000,000 13,000,000,00 - - - Cash
2007 - - - - - - -
2008 - - - 1,514,429,720 2,500,000,000 4,014,429,720 Cash
2012 - - - 7,732,867,330 4,014,429,7201 1,829,699,720 Cash
2014 15,000,000,000 13,000,000,000 15,000,000,000 - - - Cash
2016 - - - 2,902,424,930 11,829,699,72 14,732,124,650 Cash
2017 25,000,000,000* - 15,000,000,000 25,000,000,000 29,464,249,300 14,732,124,650
2018 25,000,000,000 - 25,000,000,000 29,464,249,300 - 14,732,124,650
2019 25,000,000,000 - 25,000,000,000 29,464,249,300 - 14,732,124,650
* Share Split
10. Donations and Sponsorship
The Bank’s donation and sponsorship contributions during the year ended 31st December, 2019 is as listed below:
1. Corporate Social Responsibility to Suleja Prison 500,000.00
2. Partnership in organizing financial literacy week with Bayero University, Kano 250,000.00
3. Donation to Sokoto State Zakat and Waqt Commission 100,000.00
4. Giving back to Society through Jaiz Kids Can Code project 1,400,000.00
5. Sponsoring the ignite Africa Challenge finals 1,800,000.00
6. Sponsorship of 5th African Islamic Forum, Abuja 3,000,000.00
7. Sponsorship of 3rd Daily Trust Agric Summit 1,000,000.00
8,050,000.00
PAG E
60
Directors' Report
11. Asset Values

Information relating to the Company's Assets is detailed in the Notes to the Financial Statements.
12. Audit Committee

Pursuant to Section 359(3) of the Companies and Allied Matters Act, Cap C20 LFN 2004, the Company has in place an
Audit Committee comprising three shareholders and three directors as follows:
Alhaji Shehu Mohammed, FCA - Shareholder Representative -Chairman

Alhaji Lawal Ibrahim Ozomata - Shareholder Representative
Alhaji Mohammed Gulani Shuaibu FCA - Shareholder Representative
Alhaji (Dr.) Umaru Kwairanga - Non-Executive Director
Alhaji (Dr.) Aminu Alhassan Dantata - Non-Executive Director
Alhaji (Dr.) Musbahu Mohammed Bashir - Non-Executive Director
The functions of the Audit Committee are as laid down in Section 359(6) of the Companies and Allied Matters Act, Cap
C20 LFN 2004.
13. Auditors
Messrs. Ahmed Zakari & Co. having indicated their willingness to continue in office will do so in accordance with Section
357(2) of the Companies and Allied Matters Act, CAP C20 LFN 2004.
A resolution will be proposed at the Annual General Meeting to Authorize the Directors to determine their
remuneration.
By Order of the Board
Mrs. Rukayat O. Dahiru

FRC/2014/NBA/00000009649
Company Secretary /Legal Adviser
Jaiz Bank Plc.
Kano House
No. 73 Ralph Shodeinde Street
Central Business District
Abuja
Federal Capital Territory
May 27, 2020.

PAG E
61
Corporate Governance Report
aiz Bank Plc recognizes the significance of Corporate Governance in building a sustainable organization. We believe
that effective governance is achieved through a culture of transparency and openness between Management and the
Board as well as the shareholders. The Board ensures on-going compliance with the requirements of the Code of
Corporate Governance for Banks and Discount Houses in Nigeria issued by the Central Bank of Nigeria (“the CBN
Code”), the Securities and Exchange Commission's Code of Corporate Governance for Public Companies, Financial
Reporting Council of Nigeria (FRCN) as well as the Post-Listing Requirements of the Nigeria Stock Exchange.
The Bank conducts an Annual Board Appraisal covering the Board's responsibilities, processes, relationships, structure
and composition through self evaluation and external evaluation though both processes are ultimately guided by an
independent consultant.
Basically, the Board seeks to evaluate directors behaviours inter-se, contributions at meetings, emotional quotient,
business development drive and generally assess the strength of each individual Board member thereby identifying issues
or areas that require more improvement/attention in the Board. This year and in the past few years, Nextzon Business
Services Limited was appointed to guide the process. Their review and recommendations are contained in the Annual
Report and would be presented to shareholders at the Annual General Meeting.
Board Structure
The Board of the Bank is made up of veteran professionals who possess the requisite skills, knowledge and experience to
bring to bear independent judgment on the deliberations and decisions of the Board. The Board headed by the
Chairman consists of 15 members made up of 12 Non-Executive Directors and 3 Executive Directors as set out below.
Two of the Non-Executive Directors are Independent Directors appointed based on criteria laid down by the Central
Bank of Nigeria's Guideline on Independent Directors of Banks in Nigeria. The position of the Managing Director and
Chairman are held by separate persons with clearly defined roles.
S/N Names Designation

1 Alh. (Dr.) Umar Abdul Mutallab Chairman
2. Prof. Tajudeen Adepemi Adebiyi Independent Director
3 Nafiu Baba-Ahmad Independent Director
4. Alh. (Dr.) Aminu Alhassan Dantata Non-Executive Director
5. Alh. Musbahu Muhammed Bashir Non-Executive Director
6. Alh. Mukhtar Danladi Hanga Non-Executive Director
7. H.R.H. Engr. Bello Muhammad Sani Non-Executive Director
8. Mall. Falalu Bello Non-Executive Director
9. Mr. Seedy Njie Non-Executive Director
10. Alh. (Dr.) Umaru Kwairanga Non-Executive Director
11. Alh. (Dr.) Muhammadu Indimi Non-Executive Director
12 Mallam Hassan Usman Managing Director
13. Mahe Mahmud Abubakar Deputy Managing Director
14. Mr. AbdulFattah Olanrewaju Amoo Executive Director/Chief Financial Officer
15. Alhaji Ibrahim Mamun Maude Non-Executive Director
PAG E
62
Board Changes
Two new Directors were appointed in the last quarter of 2019. Mr. Seedy Muhammed Njie was appointed to fill the
casual vacancy that was created by the resignation of Dr. Mohamed Ali Chatti who was representing the Islamic
Development Bank on the Board. The Islamic Development Bank had during the course of the year, informed the Board
that Dr. Mohamed Ali Chatti had assumed higher responsibilities in their organization and therefore would be
substituted with Mr. Seedy Muhammed Njie. Mr. Seedy’s profile has been slated in the directors report.
In line with the Bank's Board Members' Selection and Appointment Policy, the Board granted Alhaji Muhammadu
Indimi’s request for an additional seat. The Director subsequently nominated Alhaji Ibrahim Mamun Maude for
appointment as a Director. Alhaji Maude’s profile has been stated in the directors report.
Both candidates are now being presented for election.
Matters Reserved for the Board

The Board leads and provides directions for the management by determining the strategic objectives and policies of the
Bank and overseeing its implementation. The Board has delegated to the Managing Director its powers which relate to
the day to day running of the Bank.
Specific matters have been reserved for Board’s approval and include but not limited to the following:
Ÿ Defining the Bank's Strategies and Objectives
Ÿ Ensuring integrity of financial reports.
Ÿ Approval of annual budget.
Ÿ Approval of major changes to the Bank's accounting policies.
Ÿ Appointment and removal of Directors and the Company Secretary.
Ÿ Approval of charter and membership of Board Committees.
Ÿ Establishing effective internal control systems.
Ÿ Instilling a culture of compliance with rules and regulations.
Ÿ Formulating risk policies.
Ÿ Approval of quarterly, half yearly and full year financial statements.
Ÿ Ensuring planned Management succession.
Ÿ Effective communication with shareholders.
Ÿ Performance appraisal and compensation of Board members and Senior Executives.
Director's Appointment Process, Induction andTraining

The Board has developed a policy on Board appointments with the Board Governance, Remuneration and Nominations
Committee leading the process for identifying and recommending suitable candidates for the approval of the Board. In
making Board appointments, the Board takes cognizance of the knowledge, skill, experience and other qualities
considered necessary for the role. The appointment of Directors is subject to the approval of the shareholders and the
Central Bank of Nigeria.
In line with best practice, a personalized induction programme on the Bank's operational processes and expected duties
and responsibilities is conducted for new members of the Board. The member also receives an induction pack which
comprises the Board's charter, charter of the various Board Committees, significant reports, memorandum and articles
of association of the Bank, Board/Board Committee resolutions, important legislations/policies and a calendar of Board
activities.
The Board ensures that members are trained on issues relating to their oversight functions. Directors are required to
partake in periodic relevant continuing professional development programmes to update their knowledge and skills to
keep them abreast of new developments in the industry and operating environment. The table below provides the
details of continuous education and programmes undertaken by directors in 2019.
PAG E
63
S/N Names Of Director Training Organiser Location Date
1. Alh. (Dr.) Umaru Abdul Mutallab International Islamic Economics Jeddah - 29th April
HRH Engr Bello Muhammad Sani Executive Program Institute – King Saudi to 2nd May,
Nafiu Baba-Ahmad in Islamic Finance Abdulazeez University Arabia 2019
Alh. Mukhtar Danladi Sani – Saudi Arabia
AbdulFattah O. Amoo
Prof. Tajudeen A. Adebiyi
2. Alh. (Dr.) Umaru Kwairanga Strategy for Institute of Directors London 29th-31st
Directors July, 2019
3. Alh. Mahe Mahmud Abubakar Digital Leadership Interswitch Dubai 5th to 9th
Transformation August,
Bootcamp 2019
4. Amb. Mustafa Sam Effective Risk Mangt. Euromoney Learning London 9th -11th
Oversight for Board Solution September
members and , 2019
Executives
5. AbdulFattah O. Amoo CBN/FITC Continuous Education (LAGOS) 17th -18th
Mahe M. Abubakar Training Programme CBN/FITC September
Alh. Mukhtar Hanga Sani for Directors Lagos. , 2019
Alh. (Dr.) Musbahu M. Bashir
6 Mallam Hassan Usman Leading through Oxford Management Dubai 6th - 10th
VUCA Consulting Oct. 2019
7. Mallam Falalu Bello Enterprise Risk Euromoney Learning Dubai 20th - 23rd
Management Solution Oct., 2019
8. Alh. (Dr.) Musbahu M. Bashir Asset & Liability Euromoney Learning New York 21st- 24th
Management Course Solution Oct., 2019
9. All Board Members Training on Fem-Link Consult In-Plant December

AML/CFT and 12 2019
Information Security
(In-Plant)
PAG E
64
Tenure of Directors
In order to ensure both continuity and injection of fresh ideas, the tenure for Non-Executive Directors is limited to a
maximum of three (3) terms of four (4) years each, i.e. twelve (12) years while the maximum tenure for Executive
Directors is limited to a maximum of two (2) terms of five (5) years each, i.e. ten (10) years.
This is in compliance with the provisions of the CBN Code.
Board Meetings
The Board meets quarterly and additional meetings are convened as the need arises. The Board has the authority to
delegate matters to Board Committees and the Executive Management.
Attendance of Meetings
In its bid to continuously improve its corporate governance processes, as well as enhance attendance of Board meetings
by Board members, the Company Secretary prepares an annual calendar of meetings which is subsequently reviewed
and adopted by the Board prior to the commencement of a new financial year.
The table below is the record of attendance for the Board of Directors meetings for the 2019 financial year.
S/N Names of Directors March 5 June 25 July 24 Sept 30 Dec. 12

(Emergency) (Emergency)
1 Alhaji (Dr.) Umaru Mutallab, CON √ √ √ √ √
2 Hassan Usman √ √ √ √ √
3. Mahe Abubakar Mahmud √ √ √ √ √
4. AbdulFattah O. Amoo √ √ √ √ √
Exempted from
5. * Alhaji (Dr.) Aminu Dantata, CON X √ the Meeting √ √
Exempted from
6. * * Mallam Falalu Bello, FCIB, OFR √ √ the Meeting √ √
7. Alhaji (Dr.) Umaru Kwairanga √ √ √ √ √
8. Nafiu Baba-Ahmad, mni. √ √ √ √ √
9. Dr. Mohamed Ali Chatti X √ X √ √
10. Alhaji (Dr.) Muhammadu Indimi, OFR √ √ √ √ X
11 HRH (Engr.) Bello Muhammad Sani, OON √ √ √ √ √
12. Prof. Tajudeen Adebiyi √ √ √ √ √
13. Alhaji Mukhtar Sani Hanga √ √ √ √ √
14. Alhaji Musbahu M. Bashir √ √ √ √ √
PAG E
65
** Note : Mal Falalu Bello, OFR and the representative of Alh. (Dr.) Aminu Dantata, CON were exempted from the July
24th Emergency Board meeting because the agenda for the meeting concerned them.
Board Committees
The Board has established various Committees with well-defined Terms of Reference defining their scope of
responsibilities. The Committees meet quarterly but may hold additional meetings as the need arises. The Board has five
standing Committees and they include:
1. Board Risk Management Committee.
2. Board Investment Committee.
3. Board Finance & General Purpose Committee.
4. Board Governance Remuneration and Nomination Committee.
5. Board Audit Committee.
In addition to the above committees, and in line with the provisions of the Companies and Allied Matters Act, the Board
also established the Statutory Audit Committee with six (6) members drawn from among the shareholders and the
Board.
Board Governance, Remunerations & Nominations Committee (BGRNC)

Membership
1. Alh. (Dr.) Muhammadu Indimi (Chairman)
2. Alh Mukhtar S. Hanga
3. Alh. (Dr.) Aminu A. Dantata
4. Nafiu Baba Ahmad
5. Alh. (Dr.) Musbahu M. Bashir
The Committee's major responsibilities include:

Ÿ Considering matters relating to Board's remunerations and Appointment;
Ÿ Recommending any proposed change(s) to the Board;
Ÿ Keeping under review the need for appointments;
Ÿ Preparing a description of the specific experience and abilities needed for each Board appointment,
Ÿ Considering candidates for appointment as either Executive or Non-Executive Directors and recommending
such appointments to the Board;
Ÿ Advising the Board on succession planning regarding the roles of the Chairman, Chief Executive Officer and
Executive Directors;
Ÿ Advising the Board on the contents of the Directors Annual Remuneration Report to shareholders;
Ÿ Revising personnel policies for Board approval, reviewing job descriptions, establishing or periodically reviewing
the staff salary structure and staff benefits package.
The Committee met two (2) times during the 2019 financial year
Names 16 July 5th December
Alh. (Dr.) Muhammadu Indimi √ √
Alh. (Dr.) Aminu A. Dantata √ √
Nafiu Baba-Ahmad √ √
Alh. Mukhtar S. Hanga √ √
Alh. (Dr.) Musbahu M. Bashir √ √
PAG E
66
Board Investment Committee (BIC)

Membership
1. Alh (Dr.) Musbahu M. Bashir (Chairman)
2. Alh (Dr.) Umaru Kwairanga
3. Prof. Tajudeen A. Adebiyi
4. HRH Engr. Bello Muhammad Sani
5. Hassan Usman (Managing Director)
6. Mahe Mahmud Abubakar (Deputy Managing Director)

Ÿ Evaluating and approving all investments within its powers delegated by the Board;
Ÿ Evaluating and recommending all investments beyond its powers to the Board;
Ÿ Reviewing investments portfolio in line with set objectives.
Ÿ Reviewing classification of investments of the Bank based on prudential guidelines on quarterly basis;
Ÿ Approving the restructuring and rescheduling of investments within its powers;
Ÿ Writing-off and granting of waivers within powers delegated by the Board; and
Ÿ Periodic review of Investment Manuals and Guidelines.
The Committee met five (5) times during the 2019 financial year.
Names of Directors 28th March 8th April(Emergency) 14th May 25th July 4th Dec
Alh (Dr.) Musbahu M. Bashir √ √ √ √ √
Hassan Usman x x √ √ √
Prof. Tajudeen A. Adebiyi √ √ √ √ x
HRH Engr. Bello Muhammad Sani √ √ √ √ √
Alh (Dr.) Umaru Kwairanga √ √ √ √ √
Mahe Mahmud Abubakar √ √ √ √ √
Board Finance & General Purpose Committee (BFGPC)

Membership
1. HRH Engr. Bello Muhammad Sani - (Chairman)
2. Alh (Dr.) Umaru Kwairanga
3. Mall Falalu Bello,
4. Alh (Dr.) Aminu A. Dantata
5. Nafiu Baba-Ahmad
7. AbdulFattah O. Amoo (Executive Director/CFO)
The Committee's major responsibilities are to:

Ÿ Consider and advise the Board of Directors on all aspects of the Bank's finances;
Ÿ Consider and make recommendations to the Bank on the annual estimates of income and expenditure, other
budgets and the financial forecasts for the Bank;
Ÿ Consider and make recommendations to the Board of Directors for its approval, the framework for
expenditure on capital items and to review the list of priorities within the framework;
Ÿ Consider, review and report on the periodic management accounts of the Bank, and to also advise the Board of
Directors on the year-end accounts.
PAG E
67
Ÿ Consider and make representations to the Board of Directors on the solvency of the Bank and the safeguarding
of its assets;
Ÿ Consider and advise the Board of Directors on any relevant taxation issues;
The Committee met three (3) times during the 2019 financial year.
Names of Directors 17th July 11th Sept. 30th Nov.
BFGPC Meeting Attendance
HRH Engr. Bello Muhammad Sani √ √ √
Alh. (Dr.) Umaru Kwairanga √ √ √
Mall. Falalu Bello √ √ √
Alh. (Dr.) Aminu A. Dantata √ √ √
Nafiu Baba-Ahmad √ √ √
Hassan Usman √ √ √
AbdulFattah O. Amoo √ √ √
Board Risk Management Committee (BRMC)
Membership
1. Mall. Falalu Bello, FCIB, OFR (Chairman)
2. Alh. (Dr.) Muhammadu Indimi
3. Alh. Mukhtar S. Hanga
5. Mahe Abubakar Mahmud (Deputy Managing Director)
6. AbdulFattah O. Amoo (Executive Director/CFO)
The Committee's major responsibilities includes:

Ÿ Overseeing the overall Risk Management of the Bank;
Ÿ Reviewing periodically, Risk Management objectives and Policies for consideration of the full Board;
Ÿ Approving the Risk Rating Agencies, Credit Bureau and other related services providers to be engaged by the Bank;
Ÿ Approving the Internal Risk Rating Mechanism;
Ÿ Reviewing the Risk compliance reports for regulatory authorities;
Ÿ Reviewing and approving exceptions to the Bank's Risk policies;
Ÿ Reviewing policy violations on Risk issues at Senior Management level;
Ÿ Certifying Risk reports for investments, operations, market/liquidity subject to limits set by the Board.
Ÿ Consider the appointment, resignation or dismissal of the Bank's Chief Risk Officer;
The Committee met four (4) times during the 2019 financial year.
Names of Directors 27th March 17th June 23rd Sept. 21st Nov.
Mall. Falalu Belo √ √ √ √
Alh. (Dr.) Muhammadu Indimi √ √ X √
Alh. Mukhtar S. Hanga √ √ √ √
Hassan Usman √ √ √ √
Mahe Mahmud Abubakar √ √ √ √
AbdulFattah O. Amoo √ √ √ √
PAG E
68
Board Audit Committee

Membership
1. Prof. Tajudeen A. Adebiyi (Chairman)
2. Alh. (Dr.) Umaru Kwairanga
3. Alh. (Dr.) Muhammadu Indimi

Ÿ To develop and keep under review the Bank's accounting policies in order to ensure that they are in consonance with the
applicable Accounting Standards;
Ÿ To review the effectiveness of the Bank's system of accounting, reporting, and internal control and ensure compliance with
legal and ethical requirements of the Bank;
Ÿ To review the integrity of the bank's financial reporting and the independence of the external auditors;
Ÿ To review the appropriateness and completeness of the Bank's statutory accounts and other published financial
statements, and thus;
Ÿ Consider, review and report on the periodic Management Accounts of the Bank; and also advise the Board of Directors on
the year-end accounts;
Ÿ Ensuring that the Bank complies with all relevant internal policies and procedures as well as regulations governing the Bank;
Ÿ To review the summaries of the whistleblowing cases reported and the result of the investigation from the Head of Internal
Audit.
Ÿ Review the internal audit reports and assess the adequacy of the internal controls.
Ÿ Review the Compliance Reports for each quarter.
Ÿ Ensuring full and prompt implementation of recommendations of Internal Auditors, Examiners and External Auditors.
The Committee met four (4) times during the 2019 financial year.
Names of Directors 4th March 18th June 23rd July. 23rd Oct.
(Emergency)
Prof. Tajudeen A. Adebiyi √ √ √ √
Alh. (Dr.) Muhammadu Indimi √ √ √ √
Alh. (Dr.) Umaru Kwairanga √ √ √ √
Statutory Audit Committee

Membership Term of Reference
Alh. Shehu Mohammed, FCA The Committee is saddled with the following responsibilities amongst
(Chairman/Shareholder) others:
Alh. Lawal Ibrahim Ozomata Ÿ To ascertain whether the accounting and reporting policies of the
(Shareholder) Bank are in accordance with legal requirements and agreed ethical
Alh. Mohammed Gulani Shuaibu, FCA practices;
(Shareholder) Ÿ Review and approve the scope and planning of audit requirements;
Alh. (Dr.) Aminu Alhassan Dantata, CON Ÿ Review the findings on management matters in conjunction with
(Non-Executive Director) the External Auditors and Management's responses thereon;
Alh. (Dr.) Musbahu M. Bashir Ÿ Oversee the independence of the external auditors;
(Non-Executive Director) Ÿ Keep under review the effectiveness of the Bank's system of
Alhaji (Dr.) Umaru Kwairanga (Non- accounting and internal control systems;
Executive Director) Ÿ Oversee management's process for the identification of significant
fraud risks across the Bank and ensure that adequate prevention,
detection and reporting mechanisms were in place;
Ÿ At least on an annual basis, obtain and review a report by the
internal auditor describing the strength and quality of internal
PAG E
69
Term of Reference
Ÿ controls including any issues or recommendations for improvement

raised by the most recent internal control review of the company;
Ÿ Discuss the annual audited financial statements and half yearly
unaudited statements with management and external auditors.
The Statutory Audit Committee met four times in 2019 and the record of attendance is provided below:
Names of Directors 4th March 18th June 17th June. 25th Nov.
Alh. Shehu Mohammed, FCA √ √ √ √
Alh. Mohammed Gulani Shuaibu, FCA √ √ √ √
Alh. Muhammad Rabiu El-Yakub X √ No longer a No longer a
member member
Alh. Lawal Ibrahim Ozomata Noyetlonger a √ √
Not yet elected Not member
elected
Alh. (Dr.) Aminu A. Dantata √ √ √ √
Alh. (Dr.) Umaru Kwairanga √ √ √ √
Alh. (Dr.) Musbahu M. Bashir √ √ √ √
Management Committees
The Board Committees are supported by Management Committees of the Bank, comprising senior officers who are
responsible for the day-to-day operation of the Bank as a going concern. They ensure that laid down policies are
followed and that the Bank abides by all relevant regulatory and legal requirements.
Executive Management Committee is the highest Management Committee comprising the Executive Directors and Top
Management Staff of the Bank. Other Management Committees include; Assets and Liability Committee (ALCO),
Management Investment Committee (MIC); Branch Development Committee; Procurement Committee; IT Steering
Committee; Disciplinary Committee; Criticized Asset Committee (CAC), and Operational Risk Management
Committee. These Committees review and formulate strategies to implement the Board's broad strategic direction in
various areas including business and financial performance, strategic planning, manpower planning, operations, customer
service, investor relations, external relations, and organizational efficiency amongst others.
Ownership Structure
The ownership structure of the Bank is as follows:
S/N Category No Units

1. Individual 27,378 12,297,335,191
2. Government 119 2,496,038,790
3. Corporate 282 14,249,904,315
4. Joint 168 76,231,603
5. Institution 195 338,877,519
6. Foreign 8 2,619,359
Pension 1 3,242,523
Total 28,151 29,464,249,300
PAG E
70
Sustainability Banking
We at Jaiz Bank Plc strive to do business in an ethical and socially impactful manner. We are therefore mindful of business
decisions on the environment, as a result of which we are constantly developing and implementing policies with the
ultimate objective of enhancing the quality of life of our people and other stakeholders within our community, protecting
our environment, whilst ensuring the growth of our business. We have consequently adopted significantly, the Nigerian
Sustainable Banking Principles (NSBP). The detailed Sustainability Banking Report is provided on page 20 to 26 of this
document.
Code of Ethics
The Bank has an Ethical Conduct and Integrity Policy in place and all employees are required to abide by it. All employees
are expected to maintain high ethical standards in all aspects of their professional life. The Policy also provides sample
offences and appropriate disciplinary measures to be adopted.
The Bank also has a Code of Conduct & Ethics for its Directors in line with good Corporate Governance practices.
Dealing in Company Securities and price sensitive information

The Bank has adopted a policy on insider trading and market abuse regarding all transactions in the Bank's securities
which is applicable to its Directors, Officers, employees, contractors and consultants who have access to material public
information. In line with the policy, affected persons are prohibited from trading on the Bank's security during a closed
period.
Whistle Blowing Procedure

The Bank has established a robust whistle blowing procedure which covers internal whistle blowers and extends to the
conduct of the stakeholder. The Bank has a direct link on its website and intranet to enable stakeholders to report any
allegations they want the Bank to investigate. Apart from the direct link, unethical practices can be reported via the email
address [email protected].
A team comprising selected members of Top Management are responsible for reviewing reported cases and
recommending appropriate action to the Board through the Audit Committee depending on the severity of the issues
involved. In any case however, a quarterly report of all whistleblowing cases are forwarded to the Board.
The Chief Compliance Officer of the Bank similarly renders quarterly whistle blowing report to the Central Bank of
Nigeria.
Remuneration Policy
In line with corporate governance best practices, the Board had developed a robust policy on Remuneration for the
Bank. The Policy takes into account the environment in which the Bank operates and the results it achieves at the end of
each financial Year. The bank's remuneration comprises of the following elements:
Ÿ Fixed remuneration: This is primarily based on the level of responsibility and constitutes a relevant part of total
compensation. It entails the base salary and allowances payable monthly, in arrears or annually. A wage benchmark is
established for each position/level.
Ÿ Variable remuneration: This is primarily linked to the achievement of previously established targets and prudent risk
management. It comprises profit sharing/productivity bonus payable annually.
The combination of these elements serves as the basis for a balanced remuneration system reflecting the bank's strategy,
its values as well as the interests of its shareholders.
PAG E
71
I. Remuneration to Non-Executive Directors:
The Non-executive Directors of the Bank are paid remuneration by way of sitting fees for attending the meetings of the
Board of Directors and its Committees. Beside the sitting fees they are also entitled to Directors fees, reimbursement of
travel, hotel, and other out-of-pocket expenses incurred in the course of discharging their responsibilities. The Non-
executive Directors of the Company are not paid any other remuneration or commission.
The sitting fees of the Non-executive Directors for attending meetings of Board of Directors and the Committees of
Board of Directors may be modified or implemented from time to time only with the approval of the Board.
ii. Remuneration to Executive Directors:

The remuneration for Executives comprises fixed remuneration, benefits & perquisites, retirement/exit benefit and
performance based remuneration (short term incentives and long term incentives).
Contingency Planning Framework

The framework for contingency planning consists of a set of identified policies, actions and processes necessary for the
prevention, management and containment of banking systemic distress and crisis.
The Board has put in place various contingency plans for capital and liquidity restoration, amongst others which would
enhance the Bank's ability to withstand both temporary or long term disruptions in its ability to fund its activities in a
timely manner.
Shareholders' Interest
The Bank in its bid to protect the interest of its shareholders including particularly, its minority shareholders, ensures that
Shareholders meetings are convened in a transparent and fair manner. Adequate notice of general meeting is provided to
shareholders and their rights are protected at all times. Attendance of general meeting is open to all shareholders or their
proxies. The proceedings are usually monitored by the representatives of the Central Bank of Nigeria, Corporate Affairs
Commission, Nigerian Deposit Insurance Commission and the Securities and Exchange of Commission.
The Bank has an Investor Relations Unit, which deals with communications among the Bank; the shareholders; as well as
the capital market. The Bank also has an Investor Relations Portal on its website where the Bank's annual reports and
accounts and other relevant information are made accessible to its shareholders. The Bank has a dedicated e-mail
address through which shareholders and prospective investors can channel their enquiries for prompt response. The
email address is [email protected].
Communication Policy
The main objective of the Policy is to support the Bank in achieving its objectives in pursuit of best corporate governance
practices. The Executive Management ensures that communication and dissemination of information is done in English
Language which must be clear, relevant, objective, easy to understand and useful. The Policy also ensures that the Bank
delivers prompt, courteous and responsive service that is sensitive to the needs and concerns of the customers and
other stakeholders.
Advisory Committee of Experts (ACE)

The independent Committee of Shari’ah Experts reviews the Bank’s operations to confirm that activities are carried out
in accordance with the Shariah. The ACE has the responsibility of providing assurances that the Bank’s funds is not
invested in prohibited activities or transactions, and also certifying that all the Bank's products and services are compliant
with the Shari’ah. The members of the ACE are a mixture of Islamic scholars well versed in Islamic laws, principles and
traditions relating to trade, finance and economics, as well as financial experts.
PAG E
72
Internal Control
Various aspects of the internal control of the bank are the responsibilities of key officers. The Chief Audit Executive, the
Chief Compliance Officer, the Chief Risk Officer, the Chief Finance Officer, and the Company Secretary/Legal Adviser
are all responsible for managing the internal control of the Bank.
The System of the Bank provides adequate assurance that the Bank will not be adversely affected by any event that could
be reasonably foreseen.
Company Secretary
The Company Secretary is responsible for assisting the Board and Management in the implementation of the applicable
Codes of Corporate Governance. The Company Secretary serves as a point of reference and support for all Directors.
The appointment of the Company Secretary is done through a rigorous process that is similar to those of directors. The
Company Secretary is fully empowered to discharge these responsibilities and the position reports directly to the Board,
with dotted line to the MD/CEO.
Statement of Compliance
The Bank complies with the relevant provisions of the SEC, FRCN and CBN Codes of Corporate Governance. In the
event of any conflict between the two Codes regarding any matter, the Bank would defer to the provision of the CBN
Code as its primary Regulator.
Monitoring Compliance with Corporate Governance

The Chief Compliance Officer monitors compliance and implementation of the Central Bank of Nigeria (CBN) Code of
Corporate Governance as well as the Securities and Exchange Commission (SEC)'s Code of Corporate Governance.
Compliance with the Nigerian Code of Corporate Governance 2018

In furtherance of the ease of doing business objective of the Federal Government of Nigeria (FGN) and international
best practice, the Financial Reporting Council of Nigeria (“FRCN”) issued the Nigerian Code of Corporate Governance
2018 (the “Code”) which was unveiled on 15th January 2019.
The Code is aimed primarily at institutionalizing corporate governance best practices in Nigerian companies in order to
boost the integrity of and positively redefine public perception of the Nigerian business environment, thereby facilitating
increased trade and investment.
The Code specifies principles denoting minimum standards to be adopted by companies and adopts an “Apply and
Explain” philosophy in order to be flexible (applicable in diverse circumstances) and scalable (applicable to companies of
varying sizes).
Salient Provisions of the Code

The Code introduces standards which will foster an improved corporate governance regime if adopted by companies. It
consists of seven (7) parts and twenty-eight (28) principles together with practices recommended for the
implementation of each principle
1. Board Structure: The Board is required to have a charter stipulating its responsibilities. In addition, diversity
(including knowledge, skill, experience, age, culture and gender) should be an important consideration in the
composition of the board.
Also, prospective and serving directors of a company are required to disclose membership/appointments on
other board(s). The number of such other directorships and attendant responsibilities should be taken into
PAG E
73
consideration by the board. This is to determine whether the director in question can effectively undertake
his responsibilities before recommending the director for appointment or continued service as the case may
be.
The Bank has complied with this provision save for the gender bit. The Board has however renewed its
commitment to select female candidates to fill subsequent casual vacancies on the Board.
2. Independent Non-Executive Director: In order to foster objectivity, the Code requires the Board to
comprise of Independent Non-Executive Directors (“INED”) who will hold office for a maximum of three (3)
terms of three (3) years each, and provide a non-exhaustive list of factors for measuring “independence”,
including a proviso that the INEDs should not hold more than 0.01% of the company’s paid up share capital at
every given time (which is less than the 0.1% set out in the SEC Code). In addition, a Non Executive Director
(NED) is precluded from being re-designated as an INED. This requirement is aimed at inclusion of unbiased
and objective directors on the Board for the purpose of checks and balances in the decision making process,
and sustaining investors’ trust and confidence in the Board.
The Bank has complied with this provision. Accordingly, our INEDs (Nafiu Baba-Ahmad and Prof. Tajudeen
Adebiyi) that had spent 9 years on the Board subsequently retired effective from June 10, 2020.
3. Board Committee Structure

The Board is currently in compliance with the requirement for composition of Board and Statutory Audit
Committees. The Code recognizes that the functions of the Audit and Risk Management Committees are
interconnected and thus prescribes that where these functions are vested in separate committees, one or
more members of these Committees should have dual membership in both Committees. The Code
recognizes the two Audit Committees (Statutory Audit and Board Audit) and stipulates that both
Committees should meet at least once every quarter. The Committee is responsible for nomination,
governance and remuneration to the extent that it does not comprise of Executive Directors.
The above provision is currently being complied with.
4. Information Technology (IT)

The Code stipulates that the Board Risk Management Committee (BRMC) should be responsible for reviewing
the company’s IT governance framework on an annual basis. The reviewed framework is to be approved by
the Board.
By virtue of this provision, the oversight of IT which was hitherto performed by the Board Finance & General
Purpose Committee (BFGPC) was promptly transferred to the Board Risk Management Committee (BRMC)
and the BFGPC was accordingly disbanded.
5. External Audit Firm & Audit Partner Rotation

The Code prescribe that in order to preserve independence, there should be rotation of the Audit Firm
Partner every 5 years. This was done during the year under review.
6. Claw Back/Exempted Payments

The Code advocates for the implementation of a claw back policy to recover excess or undeserved reward,
such as bonuses, etc. from directors and senior employees. Furthermore, it excludes Executive Directors from
earning sitting allowances at the Board and Committee meetings (including subsidiaries). NEDs are also
exempted from earning performance-based pay to minimize bias in their decision making. The policy was
drafted and approved by the Board during the period under review.
PAG E
74
7. Stakeholder Communication
The Bank’s Communication Policy was reviewed during the year to comply with the requirement of the Code. The
Policy was accordingly hoisted on the Investors’ portal on the Bank’s website.
InsiderTrading & Market Abuse Prohibition

The Bank has in place a policy which in general terms prohibits the unauthorized disclosure of any price-sensitive non-
public information (Insider Information) acquired in the Bank by its Directors, employees and members of their
immediate family and household and the misuse of such information with regard to securities trading. The policy sets
standard terms and conditions similar to the standards set out by the Nigerian Stock Exchange on Insider Trading. The
Bank ensures that all Directors and Staff are kept informed about the policy as it is periodically circulated to Directors
and Staff to serve as a reminder of their obligations under it.
Directors, insiders and related parties are therefore prohibited from disposing, selling, buying or transferring their shares
in the Bank during a “lock up” period commencing from the date of receipt of such insider information until such a period
when the information is released to the public or any other period as defined by the Bank from time to time.
In addition to the above, the Bank commits itself to making necessary disclosure in compliance with Rule 111 of the
Securities and Exchange Commission (“SEC”) Rules and Regulations which stipulates that Directors and top
Management employees and other insiders of public companies shall notify the SEC of any sale or purchase of shares in
the company, not later than forty-eight (48) hours after such activity.
Complaints Management Policy

The Bank has put in place a Complaints Management Policy to resolve complaints arising from issues covered under the
Investments and Securities Act, 2007 (ISA).
Customer' Complaints Report for theYear Ended December 31, 2019

The Bank complied with the provision of the CBN Circular on handling of customer complaints. Various channels such
as, 24 hour contact centre; customer service desks and contacts through the Bank's website have been provided to
facilitate seamless complaint and feedback process. The report below details the customer complaints for the Year
ended December 31, 2019.
S/N Description Number Amount Claimed Amount Refunded

(Naira) (Naira)
2018 2019 2018 2019 2018 2019
1 Pending Complaints B/F 114 105 179,800.00 344,780.00
2. Received Complaints 33,898 72,156 42,644,411.24 21,846,663.00 42,299,631.24 21,099,291.00
3. Resolved Complaints 33,793 67,799 42,299,631.24 21,099,291.00 42,299,631.24 21,099,291.00
4. Unresolved Complaints
Escalated to CBN for Interv. - - - - - -
5. Unresolved Complaints
Pending with the Bank C/F 105 4357 344,780.00 747,372.00 - -
PAG E
75
Statement of Directors’ Responsibilities
RC: 476637
Statement of Directors' Responsibilities in Relation to the Financial Statements for

financial year ended December 31, 2019
The Directors accept responsibility for the preparation of the financial statements that give a true and fair
view in accordance with the requirements of the International Financial Reporting Standards, the Financial
Accounting Standards issued by AAOIFI, the Financial Reporting Council of Nigeria Act 2011, the Banks
and Other Financial Institutions Act, CAP B3, LFN 2004, and relevant Central Bank of Nigeria regulations.
The Directors further accept responsibility for maintaining adequate accounting records as required by
the Companies and Allied Matters Act of Nigeria and for such internal control as the Directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement
whether due to fraud or error.
Going Concern:
The Directors have made assessment of the Company's ability to continue as a going concern and have no
reason to believe that the Bank will not remain a going concern in the years ahead.
Resulting from the above, the directors have a reasonable expectation that the company has adequate
resources to continue operations for the foreseeable future.Thus, directors continued the adoption of the
going concern basis of accounting in preparing the annual financial statements.
Hassan Usman, FCA Abdufattah O. Amoo, FCA

Managing Director/CEO Chief Financial Officer
FRC/2013/ICAN/0000003984 FRC/2018/ICAN/00000017779
PAG E
76
Board Evaluation Report

NEXTZON
STRATEGY TECHNOLOGY SME DEVELOPMENT VENTURE CAPITAL
January 20, 2020
Chairman, Board of Directors

Jaiz Bank PLC
Kano House,
73, Ralph Shodeinde Street,
Central Business District,
P. M. 31 Garki,
Abuja, Nigeria.
Dear Sir,
RE: CORPORATE GOVERNANCE PERFORMANCE REVIEW 2019

Nextzon was engaged to undertake an annual Corporate Governance performance evaluation for Jaiz Bank PLC for
the financial year ended December 2019.
We certify that we have concluded the 2019 Corporate Governance performance review exercise for Jaiz Bank Plc,
wherein governance and control areas were reviewed and appraised using the Central Bank of Nigeria (CBN) revised
Code of Corporate Governance for Banks and Discount Houses issued in May 2014 as benchmark. From our
independent assessment, the Bank achieved full compliance on 98% of the principles defined by the CBN in the
industry code of corporate governance.
Our evaluation identified a few gaps which we have advised that the Board focuses its attention on implementing this
financial year.
We thank you for the opportunity and privilege of working with you
Your faithfully;
For: Nextzon Business Services Limited
Segun Olukoya
Executive Director
FRC/2019/IODN/000000019793
RC 418477 1 Rachael Nwangwu Close,

NEXTZON BUSINESS Lekki Phase 1,
SERVICES LIMITED Lagos, Nigeria.
…enterprise builders" Phone: GL +(234) 0812 722 7044
email: [email protected]"
PAG E
77
Statutory Audit Committee’s Report
RC: 476637
PAG E
78
Whistle Blowing Report

RC: 476637
ANNUAL REPORT ON CODE OF CORPORATE GOVERNANCE AND WHISTLE

BLOWING GUIDELINES
With reference to section 5.2.8 of the Code of Corporate Governance for Banks and Discount
Houses in Nigeria and Section 4.11 of the whistle blowing guidelines issues by the Central Bank of
Nigeria (CBN).
I write to confirm that no breach of corporate governance code was observed in2019 and there was
no receipt of whistle blowing compliant during the year
Ahmed Alhaji Hassan

Chief Compliance Officer
FRC/2013/ICAN/00000004528
PAG E
79
ACE Report
RC: 476637
In the Name of Allah Most Gracious Most Merciful

Praise be to Allah, and may peace and blessings be upon our Beloved Prophet Muhammad (SAW), his
family and companions.
To the Shareholders of Jaiz Bank Plc:

Peace, mercy and blessings of Allah be upon you and Assalamu Alaikum wa Rahmatullahi wa
Barakatuh;
According to the letter of assignment, we present the following report:

We have reviewed the products used and the contracts relating to transactions, application and
practices made by the Jaiz Bank Plc during the year ending December 31, 2019.We have also made due
diligence to determine our opinion regarding whether Jaiz Bank has committed to the principles and
rules of the Shariah as well as our advisory opinions, decisions and directives.
Responsibility of Management:
The management is responsible for ensuring that Jaiz Bank operates in accordance with the
provisions and principles of Islamic Law as the ACE advises regularly on Shariah application and our
responsibility is restricted and confined to expression of an independent opinion based on our
observations of the Bank's operations, as well as preparations of report for you.
Scope of work of the Advisory Committee of Experts:

We have reviewed and adopted forms of contracts and agreements. We have also reviewed various
processes relating to all transactions of Jaiz Bank, with shareholders, investors, customers and others.
We have selected random samples of such transactions through the Internal Shariah Audit Unit
covering all transactions as well as review of feedback regarding the Shariah Audit, its field visit, the
operations and applications of ACE Fatwas and decisions issued by the Board in this regards. In
performing our duties, we have received cooperation and understanding from all levels of
Management in the Jaiz Bank especially the Managing Director and the Shari'ah Audit Department.
We have planned and implemented our task with the aim of obtaining all the information and
explanation which we considered necessary to provide us with sufficient evidence to give reasonable
assurance that all transactions by Jaiz Bank did not violate the provisions of the rules and principles of
Shariah and wherever we found any earned income to be from non-permissible sources we directed
that such income must be transferred to charity.
Opinions of the ACE:

a) We are of the opinion that the reviewed contracts and transactions conducted by Jaiz Bank
during the year ending by 31/12/2019 were in accordance with the rules and principles of
Shariah.
PAG E
80
ACE Report
b) The distribution of profits on the investment accounts were in line with the bases adopted
and approved by the ACE according to the rules and principles of Islamic law.
c) All the gains made from Haram (prohibited by Shariah rules) sources have been set aside in a
separate account and/or transferred to Jaiz Foundation for charitable purposes.
d) However, we have noticed a few mistakes in processing some of the transactions which we
communicated to the management for correction. Many of these have already been
regularized and some are still in the process with management promise to work on
regularizing all of them.
The Advisory Committee of Experts (ACE) of Jaiz Bank Plc has reviewed the financial statements of
the Bank, and taken note of the Non-Permissible Income (NPI) declared by the Bank during the
review period. The ACE hereby confirms that the NPI has been disposed by the Bank to the
satisfaction of the ACE.
The Advisory Committee of Experts (ACE) wish to thank the Board of Directors, management,
departments and staff of the Jaiz Bank for their good cooperation with it and their commitment to the
Islamic banking practices.The ACE prays to Almighty Allah to bring them success.
And Allah knows best.
May Allah's mercy and blessings be upon you.
Date: March, 2020
Prof. (Dr.) Monzer Kahf

Chairman
Dr. M. A. Abubakar Sheik Abdulwahab A. Muhammad

Member Member
Prof. Ahmad Bello Dogarawa

Member
Financial
Statements
PAG E
82
Independent Auditor’s Report

Ahmed Zakari & Co.

(CHARTERED ACCOUNTANTS)
83
PAG E
84

85
PAG E
86

PAG E
87
Statement of Financial Position

As at 31 December 2019
Assets Notes 2019 2018

N’000 N’000
Cash and balances with Central Bank of Nigeria 3 42,103,116 23,409,751
Due from banks and other financial institutions 4 11,438,274 7,408,063
Investment in sukuk 5 41,086,469 19,819,872
Murabaha receivables 6 32,168,321 25,330,697
Investment in Bai Mu'ajjal 7 1,008,613 59,186
Investment in istisna 8 1,080,389 1,865,656
Investment in ijara assets 9 21,283,416 15,264,911
Qard hassan 10 79,430 171,948
Investment properties 11 1,603,513 1,603,513
Investment in assets held for sale 12 9,464,869 7,699,830
Property, plant and equipment 13 2,547,972 2,578,588
Leasehold improvement 14 65,297 58,118
Intangible assets 15 481,366 370,748
Other assets 16 2,400,175 2,809,209
Deferred tax asset 17b 462,186 12,368
Total assets 167,273,406 108,462,458
Liabilities
Customer current deposits 18a 69,603,883 45,950,138
Other financing 19 11,963,766 2,000,000
Other liabilities 19b 12,443,964 8,229,960
Tax payable 17a 120,251 90,344
Total liabilities 94,131,864 56,270,442
Equity of investment account holders

Customers' unrestricted investment accounts 18b 57,589,595 39,082,854
Total equity of investment account holders 57,589,595 39,082,854
Owners' equity
Share capital 20 14,732,125 14,732,125
Share premium 21 627,365 627,365
Retained earnings 22 (4,081,114) (4,574,108)
Risk regulatory reserve 23 2,714,153 1,619,336
Statutory reserve 24 1,237,662 504,826
Other reserves 25 321,757 199,618
Total equity 15,551,947 13,109,162
Total equity and liabilities 167,273,406 108,462,458

The accompanying notes form an integral part of these financial statements.
These financial statements were approved by the Board of Directors for issue on 16 March, 2020 and signed on its behalf
by:
Dr. Umaru A. Mutallab, FCA, CON Hassan Usman, FCA Abdufattah O. Amoo, FCA
Chairman Managing Director/CEO Chief Finance Officer
FRC/2013/ICAN/00000004391 FRC/2013/ICAN/00000003984 FRC/2018/ICAN/00000017779
PAG E
88
Statement of Profit or Loss and Other

Comprehensive Income For the year ended 31 December 2019
2019 2018
Notes N'000 N'000
Income:
Income from financing contracts 26 7,461,682 6,291,944
Income from investment activities 27 6,055,941 1,223,634
Gross income from financing transactions 13,517,623 7,515,577
Return on equity of investment account holders 28(i) (2,907,985) (1,916,804)
Bank's share as equity investor/ mudarib 10,609,638 5,598,773
Net Impairment (Charge)/Writeback for the year 32 (1,145,875) 231,584
Net Income after impairment 9,463,762 5,830,357
Other Income
Fees and commission 29 1,008,943 988,439
Other operating income 30 188,257 240,305
Total Income 10,660,963 7,059,102
Expenses:
Staff costs 32 3,863,554 2,808,766
Depreciation and amortisation 33 714,586 608,398
Other Operating expenses 33(I) 3,972,805 2,744,236
Total expenses 8,550,945 6,161,400
Profit before tax 2,110,018 897,701

Income tax expenses 17a 332,768 (63,336)
Profit for the year 2,442,785 834,365
Other comprehensive income

Item that may be reclassified to profit or loss
Net gain on gifted property 31 - 112,313
Total comprehensive income for the year 2,442,785 946,678
Earnings per share

Basic and diluted Earnings per share (Kobo) 8.29 kobo 2.83 kobo
PAG E
89
Statement of Changes in Equity

31 December 2019
Risk CBN Other
Share Share Retained Regulatory (AGSMEIS) Comprehensive Statutory
Capital Premium Earnings Reserve Reserve Income Reserve Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Opening balance 14,732,125 627,365 (4,574,108) 1,619,336 87,305 112,313 504,826 13,109,162
Transfer to risk regulatory reserve - - (1,094,817) 1,094,817 - - - -
Transfer to statutory reserve - - (732,836) - - - 732,836 -
Transfer to AGSMEIS - - (122,139) - 122,139 - - -
Profit for the year - - 2,442,785 - - - - 2,442,786
As at 31 December 2019 14,732,125 627,365 (4,081,114) 2,714,153 209,444 112,313 1,237,662 15,551,947
31 December 2018
Risk CBN Other
Share Share Retained Regulatory (AGSMEIS) Comprehensive Statutory
Capital Premium Earnings Reserve Reserve Income Reserve Total
N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000
Balance at 1 January 2018 14,732,125 627,365 (4,244,307) 2,267,029 42,420 - 254,516 13,679,147
Adjustment on IFRS 9 initial recognition - - - (1,516,664) - - - (1,516,664)
Restated Opening Balance under IFRS 9 14,732,125 627,365 (4,244,307) 750,364 42,420 - 254,516 12,162,483
Revaluation Reserve - - - - 112,313 - 112,313
Transfer to Risk Regulatory Reserve - - (868,971) 868,971 - - - -
Transfer to Statutory Reserve - - (250,310) - - - 250,310 -
Transfer to AGSMEIS - - (44,885) - 44,885 - - -
Profit for the year - - 834,366 - - - - 834,366
Balance at 31 December 2018 14,732,125 627,365 (4,574,108) 1,619,336 87,305 112,313 504,826 13,109,161
PAG E
91
Statement of Sources an Uses of Qard Fund

2019 2018
N'000 N'000
Qard Hasan Qard Hasan
Receivables Receivables
Qard Hassan Opening balance 174,597 149,082

Granted to staff - -
Granted to customers 15,013 83,178
Total uses during the year 189,610 232,260
Repayments
Staff repayment 14,222 16,043
Customer repayment 17,013 41,620
Total repayment 31,236 57,663
Net qard hassan 158,375 174,597

Impairment allowance (78,945) (2,649)
Balance at 31 December 79,430 171,948
The staff portion is made up of facilities granted to employees to buy the Bank's shares under 2012 Private Placement
exercise and facilities taken over by the Bank from their previous employers. Staff under critical situations were also
granted this type of facility. The amount granted to customers during the year was N15.01million (2018: N83.2 million).
PAG E
92
Statement of Sources and Uses of Charity Fund

2019 2018
N'000 N'000
Sources of Charity Funds

Balance at 1 January 3,298 -
Non-permissible income during the year 11,273 9,962
Total sources of charity funds 14,571 9,962
Uses of charity Funds

Transfer to Jaiz Foundation 13,772 6,364
Philontropic activities - 300
Total uses of charity funds 13,772 6,664
Balance at 31 December 800 3,298
This Statement discloses how the non-permissible income was utilised. During the year under review the Bank utilised
substantial balance of the non-permissible income which was largely generated in the current year.

PAG E
93
Notes to the Financial Statements

For the year ended 31 December 2019
1. Reporting entity
Jaiz Bank Plc (the “Bank”) is the first fully fledged non-interest financial institution in Nigeria. The Bank was granted a
banking license to carry on the business of non interest banking and commenced operation on January 6th, 2012 with
three branches in two states and the Federal Capital Territory. It was established has a Private limited liability Company
but was converted to a Public limited liability company in April 2016 and now trades its Stock on the Nigeria Stock
Exchange .
The address of the Bank's registered office is Kano House, Plot 73, Ralph Shodeinde Street, Central Business District, and
Abuja, Nigeria. These Financial Statements of the Bank as at 31st December 2019 are prepared for only the Bank as it has
no subsidiary and/or Associate Company.
The Financial Statement of the Bank as at 31 December 2019, is only for the Bank as it has no subsidiary and/or Associate
company. The Bank is Primary involved in Investment, Corporate and Retail Banking. These financial statements were
approved and authorized for issue by the Board of Directors on 16th March 2020.The Directors have the power to
amend and issue the financial statements.
2. Statement of compliance with International Financial Reporting Standards

The Bank’s financial statements have been prepared in accordance with International Financial Reporting Standards
(IFRS) issued by the International Accounting Standards Board (IASB) and Accounting and Auditing Organization for
Islamic Financial Institutions (AAOIFI). Additional information required by national regulations is included where
appropriate.
3. Basis of Preparation
This financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) and
interpretations issued by the IFRS Interpretations Committee (IFRSIC) applicable to companies reporting under IFRS.
For matters that are peculiar to Islamic Banking and Finance, the Bank shall rely on the Statement of Financial Accounting
(“SFA”) and Financial Accounting Standards (“FAS”) issued by the Accounting and Auditing Organization for Islamic
Financial Institutions (“AAOIFI”), Standards issued by the Islamic Financial Services Board (“IFSB”) and Circulars issued by
the Central Bank of Nigeria (“CBN”) shall also be of guidance.
The Bank’s Financial statements comprising of the Statement of Financial Position, Statement of Profit or Loss and Other
Comprehensive Income, Statement of Changes in Equity and Statement of Cash Flows as required in IAS I and
Statement of Sources and Uses of Qard and Statement of Sources and Uses of Funds in the Zakah and Charity fund as
required by FAS2 have been prepared in accordance with the Going Concern Principle under the Historical Cost
Convention and may be modified to include fair valuation of particular instruments to the extent required or Permitted
under IFRS as set out in the relevant Accounting Principle.
Significant Accounting Policies

"The accounting policies adopted are consistent with those of the previous financial year except as noted below. During
the year the Bank has continued to ensure that the accounting policies have been consistently applied to in the previous
and current year unless stated differently.
(a) Going Concern

The Bank's management shall be making assessment of the Bank's ability to continue as a going concern and where
satisfied that the Bank has the resources to continue in business for the foreseeable future shall form a judgment and
prepare accounting information based on that. In any situation whereby the Board of Directors is aware of any material
uncertainties that may cast significant doubt upon the Bank's ability to continue as a going concern such issues shall be
disclosed in the annual report.
PAG E
94

(b) Functional and Presentation Currency

The Bank presented its Financial Statements in its functional currency the Nigeria Naira. All Values is rounded to the
naira’s thousands of Naira (N'000) except where otherwise stated.
(c) Use of estimates and judgments

The preparation of the financial statements in conformity with IFRSs requires management to make judgments,
estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income
and expenses. The estimates and core assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the
revision and future years, if the revision affects both current and future years. Information about significant areas of
estimation uncertainties and critical judgments in applying accounting policies that have the most significant effect on the
amounts recognised in separate financial statements. Actual Results may differ from these estimates.
(b) New Standard and Interpretations

1. Standards and interpretations effective during the reporting period
The new reporting requirements as a result of the amendments and/or clarifications have been evaluated and their
impact or otherwise are noted below:
IFRS 16 – Leases
The standard was issued in January 2016 and sets out the principles for the recognition, measurement, presentation and
disclosure of leases. It introduces a single lessee accounting model and requires a lessee to recognize:
Ÿ Assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value.
Ÿ The liability to make lease payment (i.e. the lease liability) and an asset representing the right to use the underlying
asset during the lease term (i.e. the right-of-use-asset).
Ÿ The Interest expenses on the lease liability and the depreciation expense on the right of use asset
Ÿ The lease liability that occurred due to the occurrence of certain events(e.g. a change in the lease term, a change in
future lease payment resulting from change in an index or rate used to determine those payments). The amount that
arise from the re-measurement of the lease liability will also be adjusted against the right-of-use-asset.
For lessor accounting, it substantially carries forward the requirements in IAS 17. Accordingly, a lessor continues to
classify its leases as operating leases or finance leases, and to account for those two types of leases differently. An entity
shall apply this Standard for annual reporting periods beginning on or after 1 January 2019.
The Bank is currently assessing the impact of the standard.
The Bank has always paid for all its lease obligation in advance and report it under the statement of financial position as
prepaid rent, this left the bank with known future lease obligation to settle and no interest expenses on the lease liability.
The bank will reclassify the rental expenses to depreciation as applicable. In general there are no financial impact of
adopting the IFRS 16 on the Bank book
IFRS 15 Revenue from Contracts with Customers

"In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers, effective for periods beginning on 1
January 2018 with early adoption permitted. IFRS 15 defines principles for recognizing revenue and will be applicable to
all contracts with customers. However, interest and fee income integral to financial instruments and leases will continue
to fall outside the scope of IFRS 15 and will be regulated by the other applicable standards (e.g. IFRS 9, and IFRS 16
Leases).
PAG E
95

Revenue under IFRS 15 will need to be recognised as goods and services are transferred, to the extent that the transferor
anticipates entitlement to goods and services. The following five step model in IFRS 15 is applied in determining when to
recognise revenue, and at what amount:
i) Identify the contract(s) with a customer
ii) Identify the performance obligations in the contract
iii) Determine the transaction price
iv) Allocate the transaction price to the performance obligations in the contract
v) Recognise revenue when (or as) the entity satisfies a performance obligation
The standard also specifies a comprehensive set of disclosure requirements regarding the nature, extent and timing as
well as any uncertainty of revenue and the corresponding cash flows with customers. This standard does not have any
significant impact on the Bank.
2. Standards and interpretations issued/amended but not yet effective

The following standards have been issued or amended by the IASB but are yet to become effective for annual periods
beginning on or after 1 January 2019:
Standard Content Effective Date

IFRS 3 Business Combination 1-Jan-20
IAS 1 & IAS 8 Definition of Material 1-Jan-20
IFRS 17 Insurance Contracts 1-Jan-21
Amendments to IFRS 3 (Business Combination)

IFRS 3 (Business Combinations) outlines the accounting when an acquirer obtains control of a business (e.g. An
acquisition or merger). In October 2018, after the post implementation review of IFRS 3, the IASB issued an amendment
to IFRS 3 which centres majorly on the definition of a Business. They include:
Ÿ That to be considered a business, an acquired set of activities and assets must include, at minimum, an input and a
substantive process that together significantly contribute to the ability to create outputs:
Ÿ Narrow the definitions of a business and of outputs by focusing on goods and services provided to customers and by
removing the reference to an ability to reduce costs.
Ÿ Add guidance and illustrative examples to help entities assess whether a substantive process has been acquired.
Ÿ Remove the assessment of whether market participants are capable of replacing any missing inputs or processes and
continuing to produce outputs: and
Ÿ Add an optional concentration test that permits a simplified assessment of whether an acquired set of activities and
assets is not a business.
The effective date is on or after 1st January 2020. This amendment does not have any impact on the Bank.
Amendment to IAS 1 and IAS 8

In October 2018, the IASB issued the definition of ‘material’. The amendments are intended to clarify, modify and ensure
that the definition of ‘material’ is consistent across all IFRS. In IAS 1 (Presentation of Financial Statements) and IAS 8
(Accounting Policies, Changes in Accounting Estimates and Errors), the revised definition of ‘material’ is quoted below:
“An information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that
the primary users of general purpose financial statements make based on those financial statements, which provide
financial information about a specific reporting entity”
PAG E
96

The amendments laid emphasis on five (5) ways material information can be obscured. These include:
Ÿ If the language regarding a material item, transaction or other event is vague or unclear;
Ÿ If information regarding a material item, transaction or other event is scattered in different places in the financial
statements;
Ÿ If dissimilar items, transactions or other events are inappropriately aggregated;
Ÿ If similar items, transactions or other events are inappropriately disaggregated; and
Ÿ If material information is hidden by immaterial information to the extent that it becomes unclear what information is
material.
The amendments are effective for annual reporting periods beginning on or after 1st January 2020. The Bank has taken
into consideration the new definition in the preparation of its annual account.
IFRS 17 - Insurance Contracts

IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2021. The new
IFRS 17 standard establishes the principles for the recognition, measurement, presentation and disclosure of Insurance
contracts within the scope of the Standard. The objective of IFRS 17 is to ensure an entity provides relevant information
that faithfully represents those contracts.
This information gives a basis for users of financial statements to assess the effect that insurance contracts have on the
entity’s financial position, financial performance and cash flows. This standard does not impact the Bank in anyway as the
Bank and its subsidiary companies do not engage in insurance business.
(b) IFRS 9 Financial Instruments

"In July 2014, the IASB issued IFRS 9 Financial Instruments (“IFRS 9”), which replaces IAS 39 “Financial Instruments:
Recognition and Measurement”. IFRS 9 addresses all aspects of financial instruments including classification and
measurement, impairment and hedge accounting.
The adoption of IFRS 9 also significantly amends other standards dealing with financial instruments such as IFRS 7
Financial Instrument Disclosures.
The transitional provisions of IFRS 9 permitted the Bank to elect not to restate comparative figures. Adjustments to the
carrying amounts of financial assets and financial liabilities at the date of the transition were recognised in the opening
retained earnings and other reserves of the current period."
The preparation of financial statements requires the use of estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, actual results ultimately may differ from those estimates.
The most significant uses of judgments and estimates are as follows:
3.1 Other Accounting Policies

i Going Concern
The Bank's management shall be making assessment of the Bank's ability to continue as a going concern and where
satisfied that the Bank has the resources to continue in business for the foreseeable future shall form a judgment and
prepare accounting information based on that. In any situation whereby the Board of Directors is aware of any material
uncertainties that may cast significant doubt upon the Bank's ability to continue as a going concern such issues shall be
disclosed in the annual report.
ii FairValue of Unquoted Equity Securities and Investment Properties

Fair value shall be determined for each investment individually in accordance with the valuation policies of the Bank.
Where the fair values of the Bank's unquoted equity securities cannot be derived from an active market, they shall be
derived using a variety of valuation techniques. Judgment by management is required to establish fair values through the
PAG E
97

use of appropriate valuation models, consideration of comparable assets, discount rates and the assumptions used to
forecast cash flows. Investment properties and investments in real estate projects shall be carried at fair value as
determined by independent real estate valuation experts. The determination of the fair value for such assets requires the
use of judgment and estimates by the independent valuation experts that are based on local market conditions existing at
the date of the statement of financial position.
iii Impairment Provisions against Financing Contracts with Customers

The Bank shall review its financing contracts at each reporting date to assess whether an impairment provision should be
recorded in the financial statements. In particular, judgment by management is required in the estimation of the amount
and timing of future cash flows when determining the level of provision required. Such estimates are based on
assumptions about factors involving varying degrees of judgment and uncertainty and actual results may differ resulting in
future changes to the provisions. In addition to specific provisions against individually significant financing contracts, the
Bank also shall make a collective impairment provision of 1% against exposures which, although not specifically identified
as requiring a specific provision, have a greater risk of default than when originally granted. This takes into consideration,
factors such as any deterioration in country risk, industry, and technological obsolescence, as well as identified structural
weaknesses or deterioration in cash flows.
iv Impairment of Investments at FairValue through Equity

The Bank shall treat investments carried at fair value through equity as impaired when there is a significant or prolonged
decline in the fair value below their costs or where other objective evidence of impairment exists. The determination of
what is 'significant' or 'prolonged' requires judgment. The Bank would evaluate factors, such as the historical share price
volatility for comparable quoted equities and future cash flows and the discount factors for comparable unquoted
equities.
v Liquidity
The Bank shall manage its liquidity through consideration of the maturity profile of its assets and liabilities on daily basis.
This requires judgment when determining the maturity of assets and liabilities with no specific maturities.
(c) Inventory
Inventory of stationery and consumables held by the Bank are to be stated at the lower of cost and net realizable value in
line with IAS 2. When inventories become old or obsolete, an estimate is to be made of their net realizable value. For
individually significant amounts, this estimation is to be performed on an individual basis. For amounts that are not
individually significant, collective assessment shall be made and allowance applied according to the inventory type and
degree of ageing or obsolescence based on historical selling prices.
(d) Non-Current Assets

Non-current (fixed) assets are initially recorded at cost. They are to be subsequently stated at historical cost less
depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to
the acquisition of the assets.
Subsequent costs are included in the asset's carrying amount or are recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the asset will flow to the Bank and the cost of the asset
can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial
period in which they are incurred.
Construction cost in respect of offices is carried at cost as work in progress. On completion of construction, the related
amounts are transferred to the appropriate category of fixed assets. Payments in advance for items of fixed assets are
included as Prepayments in Other Assets and upon delivery are reclassified as additions in the appropriate category of
property and equipment.
PAG E
98

Asset that do not reach a limit of N25,000 (Twenty Five Thousand Naira Only) are expensed immediately in the income
statement, but capitalized if above limit.

Depreciation is to be provided on a straight-line basis to write off the cost of asset over their estimated useful live. The
annual rate which should be applied consistently over time are as follows:
Motor vehicle (5 years) 20%
Furniture and fittings (5 years) 20%
Equipment (5 years) 20%
Computer Equipment- General (3 years) 33%
Computer Equipment- Special (5 years) 20%
Computer software (10 years) 10%
Freehold Buildings (50 years) 2%
Leasehold building over the expected life of the lease
Leasehold improvement over the period of the lease
Property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from it
use. Gain and losses are recognised in the income statement.
Depreciation is charged when the assets are available for use irrespective of whether they are put to use. Assets that are
subject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An asset's carrying amount is written down immediately to its recoverable
amount if the asset's carrying amount is greater than its estimated recoverable amount. The recoverable amount is the
higher of the asset's fair value less costs to sell and value in use.
Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the
statement of income for the year.
(e) Intangible Assets

Software licenses acquired by the Bank are stated at cost less accumulated amortization and accumulated impairment
loss (if any). Expenditure incurred on internally developed software is recognized as an asset when the Bank is able to
complete the software development and use it in such a manner that it will be able to generate economic benefit to the
Bank, and that the cost to complete the development can reliably be measured by the Bank.
Internally developed software cost that is capitalized includes cost directly attributable to developing the software, and is
amortized over the useful economic life of the software.
Amortization is recognized in the income statement on a straight line basis over the estimated useful life of the software.
(f) Financial Instruments – Initial Recognition and Subsequent Measurement

All financial assets and liabilities are initially recognized on the trade date, i.e. the date that the Bank becomes a party to the
contractual provisions of the instrument. The classification of financial instruments at initial recognition depends on the
purpose and the management's intention for which the financial instruments were acquired and their characteristics. All
financial instruments are measured initially at their fair value plus transaction costs, except in the case of financial assets
recorded at fair value through income statement.
(g) Ijarah (Leasing)

The Bank shall comply fully with the requirements of Sharia in recognition and measurement of Ijarah financing. The
periodic lease rentals receivable are treated as rental income during the period they occur and charge thereon is included
in operating expenses while initial direct cost incurred are written off to the income statement in the period they are
incurred.
PAG E
99

(h) Murabaha Receivables from Banks

These are interbank commodity Murabaha transactions. The Bank arranges a Murabaha transaction by buying a
commodity (which represents the object of the murabaha) and then resells this commodity to the beneficiary murabeh
(after adding a profit margin). The sale price (cost plus the profit margin) is paid either lump sum at Maturity or in
installments by the Murabeh over the agreed period. Murabaha receivables from banks are stated net of deferred profits
and provision for impairment, if any.
(i) Murabaha Receivables from Customers

Customer Murabaha receivables consist of deferred sales transaction agreements and are stated net of deferred profits,
any amounts written off and provision for impairment, if any. Promise made in the Murabaha to the purchase Orderer is
obligatory upon the customer and the bank can claim damages to the exact amount of loss suffered.
(j) Musharaka
Musharaka contracts represents a partnership between the Bank and a customer whereby each party contributes to the
capital in equal or varying proportions to establish a new project or share in an existing one, and whereby each of the
parties becomes an owner of the capital on a permanent or declining basis and shall have a share of profits or losses.
These are stated at the fair value of consideration given less any amounts written off and provision for impairment, if any.
(k) Wakalah
A contract between a Bank and a customer whereby one party (the principal: the Muwakkil) appoints the other party
(the agent: Wakil ) to invest certain funds according to the terms and conditions of the Wakalah for a fixed fee in addition
to any profit exceeding the expected profit as an incentives for the Wakil for the good performance. Any losses as result
of the misconduct or negligence or violation of the terms and conditions of the Wakalah are borne by the Wakil for
otherwise, they are by the principal.
(l) Impairment of Financial Assets

In line with IFRS 9, the Bank assesses the under listed financial instruments for impairment using Expected Credit Loss
(ECL) approach:
Ÿ Amortized cost financial assets;
Ÿ Debt securities classified as at FVOCI;
Ÿ Off-balance sheet loan commitments; and
Ÿ Financial guarantee contracts.
Ÿ
Equity instruments and financial assets measured at FVTL are not subjected to impairment under the standard.
Expected Credit Loss Impairment Model
The Bank’s allowance for credit losses calculations are outputs of models with a number of underlying assumptions
regarding the choice of variable inputs and their interdependencies. The expected credit loss impairment model reflects
the present value of all cash shortfalls related to default events either over the following twelve months or over the
expected life of a financial instrument depending on credit deterioration from inception. The allowance for credit losses
reflects an unbiased, probability-weighted outcome which considers multiple scenarios based on reasonable and
supportable forecasts.
The Bank adopts a three-stage approach for impairment assessment based on changes in credit quality since initial
recognition.
• Stage 1 – Where there has not been a significant increase in credit risk (SICR) since initial recognition of a financial
instrument, an amount equal to 12 months expected credit loss is recorded. The expected credit loss is computed using
PAG E
100

a probability of default occurring over the next 12 months. For those instruments with a remaining maturity of less
than12 months, a probability of default corresponding to remaining term to maturity is used.
• Stage 2 – When a financial instrument experiences a SICR subsequent to origination but is not considered to be in
default, it is included in Stage 2. This requires the computation of expected credit loss based on the probability of default
over the remaining estimated life of the financial instrument.
• Stage 3 – Financial instruments that are considered to be in default are included in this stage. Similar to Stage 2, the
allowance for credit losses captures the lifetime expected credit losses. The guiding principle for ECL model is to reflect
the general pattern of deterioration or improvement in the credit quality of financial instruments since initial recognition.
The ECL allowance is based on credit losses expected to arise over the life of the asset (life time expected credit loss),
unless there has been no significant increase in credit risk since origination.
Measurement of Expected Credit Losses

The probability of default (PD), exposure at default (EAD), and loss given default (LGD) inputs used to estimate
expected credit losses are modelled based on macroeconomic variables that are most closely related with credit losses
in the relevant portfolio.
Details of these statistical parameters/inputs are as follows:
• PD – The probability of default is an estimate of the likelihood of default over a given time horizon. A default may
only happen at a certain time over the remaining estimated life, if the facility has not been previously derecognized
and is still in the portfolio.
o 12-month PDs – This is the estimated probability of default occurring within the next 12 months (or over the
remaining life of the financial instrument if that is less than 12 months). This is used to calculate 12-month ECLs.
The Bank obtains the constant and relevant coefficients for the various independent variables and computes the
outcome by incorporating forward looking macroeconomic variables and computing the forward probability of
default.
o Lifetime PDs – This is the estimated probability of default occurring over the remaining life of the financial
instrument. This is used to calculate lifetime ECLs for ‘stage 2’ and ‘stage 3’ exposures. PDs are limited to the
maximum period of exposure required by IFRS 9. The Bank obtains 3 years forecast for the relevant
macroeconomic variables and adopts exponentiation method to compute cumulative PD for future time
periods for each obligor.
• EAD – The exposure at default is an estimate of the exposure at a future default date, taking into account expected
changes in the exposure after the reporting date, including repayments of principal and interest, whether scheduled
by contract or otherwise, expected drawdowns on committed facilities, and accrued interest from missed
payments.
• LGD – The loss given default is an estimate of the loss arising in the case where a default occurs at a given time. It is
based on the difference between the contractual cash flows due and those that the lender would expect to receive,
including from the realization of any collateral. It is usually expressed as a percentage of the EAD.
• To estimate expected credit loss for off balance sheet exposures, credit conversion factor (CCF) is usually
computed. CCF is a modelled assumption which represents the proportion of any undrawn exposure that is
expected to be drawn prior to a default event occurring. It is a factor that converts an off balance sheet exposure to
its credit exposure equivalent. In modelling CCF, the Bank considers its account monitoring and payment processing
policies including its ability to prevent further drawings during periods of increased credit risk. CCF is applied on the
off balance sheet exposures to determine the EAD and the ECL impairment model for financial assets is applied on
the EAD to determine the ECL on the off balance sheet exposures.
PAG E
101

Forward-looking information
The measurement of expected credit losses for each stage and the assessment of significant increases in credit risk
considers information about past events and current conditions as well as reasonable and supportable forecasts of future
events and economic conditions. The estimation and application of forward-looking information requires significant
judgement. The measurement of expected credit losses for each stage and the assessment of significant increases in
credit risk considers information about past events and current conditions as well as reasonable and supportable
forecasts of future events and economic conditions. The estimation and application of forward-looking information
requires that:
• The Bank uses internal subject matter experts from Risk, Treasury and Business Divisions to consider a range of
relevant forward looking data, including macro-economic forecasts and assumptions, for the determination of unbiased
general economic adjustments in order to support the calculation of ECLs.
• Macro-economic variables taken into consideration include, but are not limited to, unemployment, interest rates,
gross domestic product, inflation, crude-oil prices and exchange rate, and requires an evaluation of both the current and
forecast direction of the macro-economic cycle.
• Macro-economic variables considered have strong statistical relationships with the risk parameters (LGD, EAD, CCF
and PD) used in the estimation of the ECLs, and are capable of predicting future conditions that are not captured within
the base ECL calculations.
• Forward looking adjustments for both general macro-economic adjustments and more targeted at portfolio /
industry levels. The methodologies and assumptions, including any forecasts of future economic conditions, are reviewed
regularly.
Macroeconomic factors
The Bank relies on a broad range of forward looking information as economic inputs, such as: GDP growth,
unemployment rates, central bank base rates, crude oil prices, inflation rates and foreign exchange rates. The inputs and
models used for calculating expected credit losses may not always capture all characteristics of the market at the date of
the financial statements. To reflect this, qualitative adjustments or overlays may be made as temporary adjustments using
expert credit judgement.
The macroeconomic variables and economic forecasts as well as other key inputs are reviewed and approved by
management before incorporated in the ECL model. Any subsequent changes to the forward looking information are
also approved before such are inputted in the ECL model.
The macro economic variables are obtained for 3 years in the future and are reassessed every months to ensure that
they reflect prevalent circumstances and are up to date. Where there is a non-linear relationships, one forward-looking
scenario is never sufficient as it may result in the estimation of a worst-case scenario or a best-case scenario. The Bank’s
ECL methodology considers weighted average of multiple economic scenarios for the risk parameters
(Basically the forecast macroeconomic variables) in arriving at impairment figure for a particular reporting period.
The model is structured in a manner that the final outcome, which is a probability cannot be negative.
SICR is assessed once there is an objective indicator of a deterioration in credit risk of customer.
In addition, the Bank as part of its routine credit processes perform an assessment on a quarterly basis to identify
instances of SICR.
Multiple forward-looking scenarios

The Bank determines allowance for credit losses using three probability-weighted forward-looking scenarios. The Bank
considers both internal and external sources of information in order to achieve an unbiased measure of the scenarios
used. The Bank prepares the scenarios using forecasts generated by credible sources such as Business Monitor
International (BMI), International Monetary Fund (IMF), Nigeria Bureau of Statistics (NBS), World Bank, Central Bank of
Nigeria (CBN), Financial Markets Dealers Quotation (FMDQ), and Trading Economics.
PAG E
102

The Bank estimates three scenarios for each risk parameter (LGD, EAD, CCF and PD) – Normal, Upturn and Downturn,
which in turn is used in the estimation of the multiple scenario ECLs. The ‘normal case’ represents the most likely
outcome and is aligned with information used by the Bank for other purposes such as strategic planning and budgeting.
The other scenarios represent more optimistic and more pessimistic outcomes. The Bank has identified and
documented key drivers of credit risk and credit losses for each portfolio of financial instruments and, using an analysis of
historical data, has estimated relationships between macro-economic variables, credit risk and credit losses.
Assessment of significant increase in credit risk (SICR)

At each reporting date, the Bank assesses whether there has been a significant increase in credit risk for exposures since
initial recognition by comparing the risk of default occurring over the remaining expected life from the reporting date and
the date of initial recognition. The assessment considers borrower-specific quantitative and qualitative information
without consideration of collateral, and the impact of forward-looking macroeconomic factors. The common
assessments for SICR on retail and non-retail portfolios include macroeconomic outlook, management judgement, and
delinquency and monitoring. Forward looking macroeconomic factors are a key component of the macroeconomic
outlook.
The importance and relevance of each specific macroeconomic factor depends on the type of product, characteristics of
the financial instruments and the borrower and the geographical region. The Bank adopts a multi factor approach in
assessing changes in credit risk. This approach Considers: Quantitative (primary), Qualitative (secondary) and Back stop
indicators which are critical in allocating financial assets into stages.
The quantitative models considers deterioration in the credit rating of obligor/counterparty based on the Bank’s internal
rating system or External Credit Assessment Institutions (ECAI) while qualitative factors considers information such as
expected forbearance, restructuring, exposure classification by licensed credit bureau, etc.
A backstop is typically used to ensure that in the (unlikely) event that the primary (quantitative) indicators do not change
and there is no trigger from the secondary (qualitative) indicators, an account that has breached the 30 days past due
criteria for SICR and 90 days past due criteria for default is transferred to stage 2 or stage 3 as the case may be except
there is a reasonable and supportable evidence available without undue cost to rebut the presumption.
Definition of Default and Credit Impaired Financial Assets

At each reporting date, the Bank assesses whether financial assets carried at amortised cost and debt financial assets
carried at FVOCI are credit-impaired. A financial asset is ‘credit impaired’ when one or more events that have a
detrimental impact on the estimated future cash flows of the financial asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
Significant financial difficulty of the borrower or issuer;
Ÿ A breach of contract such as a default or past due event;
Ÿ The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty,
having granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
Ÿ It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; or
Ÿ The disappearance of an active market for a security because of financial difficulties.
Ÿ The purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.
Ÿ Others include death, insolvency, breach of covenants, etc.
A loan that has been renegotiated due to a deterioration in the borrower’s condition is usually considered to be credit-
impaired unless there is evidence that the risk of not receiving contractual cash flows has reduced significantly and there
are no other indicators of impairment.
In addition, loans that are more than 90 days past due are considered impaired. More information around rebuttal is
presented under Financial Risk Management on page 135.
PAG E
103

In making an assessment of whether an investment in sovereign debt is credit-impaired, the Bank considers the following
factors.
Ÿ The market’s assessment of creditworthiness as reflected in the bond yields.
Ÿ The rating agencies’ assessments of creditworthiness.
Ÿ The country’s ability to access the capital markets for new debt issuance.
Ÿ The probability of debt being restructured, resulting in holders suffering losses through voluntary or mandatory debt
forgiveness.
Ÿ The international support mechanisms in place to provide the necessary support as ‘lender of last resort’ to that
country, as well as the intention, reflected in public statements, of governments and agencies to use those
mechanisms. This includes an assessment of the depth of those mechanisms and, irrespective of the political intent,
whether there is the capacity to fulfil the required criteria.
Presentation of allowance for ECL in the statement of financial position

Loan allowances for ECL are presented in the statement of financial position as follows:
Ÿ Financial assets measured at amortised cost: as a deduction from the gross carrying amount of the assets;
Ÿ Loan commitments and financial guarantee contracts: generally, as a provision;
Ÿ Where a financial instrument includes both a drawn and an undrawn component, and the Bank cannot identify the
ECL on the loan commitment component separately from those on the drawn component: the Bank presents a
combined loss allowance for both components. The combined amount is presented as a deduction from the gross
carrying amount of the drawn component. Any excess of the loss allowance over the gross amount of the drawn
component is presented as a provision; and
Ÿ Debt instruments measured at FVOCI: no loss allowance is recognised in the statement of financial position because
the carrying amount of these assets is their fair value. However, the loss allowance is disclosed and is recognised in the
fair value reserve.
(m) Income Recognition

I Murabaha
Where the income is quantifiable and contractually determined at the commencement of the contract, income is
recognized on a time-apportioned basis over the period of the contract based on the principal amounts outstanding.
Accrual of income is suspended when the bank believes that the recovery of these amounts may be doubtful.
Where the income is quantifiable and contractually determined at the commencement of the contract, income is
recognized on a time-apportioned basis over the period of the contract based on the principal amounts outstanding.
Accrual of income is suspended when the bank believes that the recovery of these amounts may be doubtful.
ii Ijarah Muntahia Bittamleek

Ijarah income is recognized on a time-apportioned basis, over the lease term. Accrual of income is suspended when the
bank believes that the recovery of these amounts may be doubtful.
iii Musharaka
Income on Musharaka Contracts is recognized when the right to receive payment is established or on distribution by the
Musharek.
iv Dividends
Dividends from investments in equity securities are recognized when the right to receive the payment is established. This
is usually when the dividend has been declared.
v Fees and Commission Income

The Bank earns fee and commission income from a diverse range of services it provides to its customers.
PAG E
104

vi Sale of Property under Development

Where property is under development and agreement has been reached to sell such property when construction is
complete, the bank considers whether the contract comprises:

Ÿ Contract to construct a property; or
Ÿ Contract for the sale of completed property
Where a contract is judged to be for the construction of a property, revenue is recognized using the percentage of
completion method, as construction progresses. The percentage of work completed is measured based on the costs
incurred up until the end of the reporting period as a proportion of total costs expected to be incurred.
Where the contract is judged to be for the sale of a completed property, revenue is recognized when the significant risks,
rewards and control of ownership of the property are transferred to the buyer.
vii Non-Credit Related Fee Income

This is recognized at the time the services have been performed and delivered or the transaction has been completed.
viii Foreign Income

a) Commission on negotiation of various letters of credit and overdue Profit on delayed foreign payments are
accounted for on receipt.
b) Other Profit and income earned on the Bank's own funds held outside Nigeria are accounted for on receipt.
ix Earnings Prohibited by Shari 'a

The bank is committed to avoid recognizing any income generated from non-Islamic sources. Accordingly, all non-
permissible income is transferred to charity.
x Service Income
Revenue from rendering of services is recognized when the services are rendered.
xi Revenue from Sale of Goods

Revenue from sales of goods is recognized when the significant risks, rewards and control of ownership of the goods
have passed to the buyer and the amount of revenue can be measured reliably.
xii Bank's Share as a Mudarib

The Bank's share as a mudarib for managing the equity of investment account holders is accrued based on the terms and
conditions of the related mudaraba agreements whereas, for off balance sheet equity of investment accounts, mudarib
share is recognized when distributed.
xiii Expense Recognition

a) Profit on mudaraba payable (banks and non-banks)
Profit on these is accrued on a time-apportioned basis over the period of the contract based on the principal amounts
outstanding.
b) Return on Equity of Investment Account Holders

Return on equity of investment account holders is based on the income generated from jointly financed assets after
deducting Mudarib share and is accrued based on the terms and conditions of the underlying Mudaraba agreement.
Investors' share of income represents income generated from assets financed by investment account holders net off
allocated administrative expenses and provisions. The bank's share of profit is deducted from the investors' share of
income before distribution to investors.
(n) Transactions in Foreign Currencies

i The financial statements are presented in Nigerian Naira, which is the reporting currency in line with IAS21 (Effects
of foreign exchange)
PAG E
105

ii Transactions in foreign currencies are recorded in the books at the rate of exchange ruling on the date of the
transactions.
iii Monetary assets and liabilities denominated in foreign currencies are converted into Naira at the rate of exchange
ruling at the balance sheet date. All differences are taken to the statement of income.
iv Non-monetary items that are measured in terms of historical cost in a foreign currency are translated into Naira
using the exchange rates as at the dates of the initial recognition. Non-monetary items measured at fair value in a
foreign currency are translated into Naira using the exchange rates at the date when the fair value is determined.
Exchange gains and losses on non-monetary items classified as “fair value through statement of income” are taken to
the income statement and for items classified at “fair value through equity” such differences are taken to the
statement of comprehensive income.
Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of
assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operations and translated at
closing rate.
(o) Taxation
i Current Income Taxation
Income tax is the amount of income tax payable on the taxable profit for the period determined in accordance with
current statutory rate. Income tax payable on profits, based on the applicable tax law, is recognized as an expense in the
period in which the related profits arise. All taxes related issues including deferred tax are treated in accordance with IAS
12 (Income taxes).
ii Deffered Taxation
Provision for deferred taxation is made by the liability method and calculated at the current rate of taxation on the
temporary differences between the net book value of qualifying fixed assets and their corresponding tax written down
value in accordance with IAS 12 (Income taxes). The principal temporary differences arise from depreciation of
property, plant and equipment, provisions for pensions and other post-retirement benefits, provisions for Investment
losses and tax losses carried forward. The rates enacted or substantively enacted at the balance sheet date are used to
determine deferred income tax.
Deferred tax assets are recognized where it is probable that future taxable profit will be available against which the timing
differences can be utilized.
(p) Investments
i Investment Securities
Investment securities are initially recognized at cost and management determines the classification at initial investment.
Investments in securities are classified, measured and recognize in accordance with IAS 39 (Financial Instruments
measurement and recognition).
ii Investments at FairValue through Statement of Income

Investments at fair value through statement of income include investments designated upon initial recognition as
investments at fair value through statement of income. Financial assets carried at fair value through statement of income
are recognised at fair value, with transaction costs recognised in the consolidated statement of income.
Investments classified as 'at fair value through statement of income’ are subsequently measured at fair value. The
unrealized gains and losses arising from the re-measurement to fair value are included in the consolidated statement of
income.
iii Investments at FairValue through Equity

Investments at fair value through equity are those which are designated as such or are not classified as carried at fair value
through statement of income. These include investments in equity securities and managed funds.
PAG E
106

After initial measurement, investments at fair value through equity are subsequently measured at fair value. Unrealised
gains and losses are recognised in statement of comprehensive income and then transferred to the available for sale
reserve in the consolidated statement of changes in equity. When the investment is disposed of or determined to be
impaired, the cumulative gain or loss, previously transferred to the available for sale, reserve is recognised in the
consolidated statement of income. Where the Bank holds more than one investment in the same security they are
deemed to be disposed off on a weighted average basis. Profit earned whilst holding investments at fair value through
equity is reported as Income from investment activities' using the effective profit rate method. Long-term investments
are investments held over a long period of time to earn income. Long-term investments may include debt and equity
securities.
iv Investments in Subsidiaries
Investments in subsidiaries are carried in the company's balance sheet at cost less provisions for impairment losses.
Where, in the opinion of the Directors, there has been impairment in the value of an investment, the loss is recognized as
an expense in the period in which the impairment is identified.
On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or
credited to the statement of income.
(q) Retirement Benefits

Retirement benefits to employees are provided under a defined contribution scheme, which is funded by contribution
from the bank and employees. Funding under the new scheme is 8.0% by staff and 10% by the Bank based on annual
basic salary, housing and transport allowances in line with the new Pension Reform Act, 2014. Membership of the
scheme is automatic upon resumption of duty with the Bank. The Bank has no further payment obligations once the
contributions have been paid.
The Bank's liabilities in respect of the defined contribution are to be charged against the profit of the year in which they
become payable. Payments are made to Pension Fund Administration companies, who are financially independent of the
bank.
(r.) Provisions, Contingent Assets and Contingent Liabilities

Provision is recognized when the Bank has a present obligation whether legal or constructive as a result of a past event
for which it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and the amount can be reliably measured, in accordance with the International Financial Reporting Standards
(IAS 37).
Transactions that are not currently recognized as assets or liabilities in the balance sheet, but which nonetheless give rise
to credit risks, contingencies and commitments are reported off balance sheet. Such transactions included letters of
credit, bonds, guarantees, acceptances, trade related contingencies such as documentary credits etc.
Outstanding and unexpired commitments at year end in respect of these transactions are to be shown by way of note to
the financial statements.
Income on off-balance sheet engagement is in form of commission and fees.
Commission and fees are recognized when transactions are executed.
(s) Borrowings
I Murabaha and Due to Banks
This represents funds received from banks on the principles of murabaha contracts and are stated at fair value of
consideration received less amounts settled.
PAG E
107

ii Murabaha and due to non-banks

These are stated at fair value of consideration received less amounts settled. Profit paid on borrowings is recognized in
the statement of income for the year.
(t) Fiduciary Activities

The Bank acts as trustee in its capacity as a Mudarib when managing the equity of investment account holders. Equity of
investment account holders is invested in murabaha and due from banks, sukuk and financing contracts with customers.
Equity of investment account holders is carried at fair value of consideration received less amounts settled. Expenses are
allocated to investment accounts in proportion of average equity of investment account holders to total average assets
of the Bank.
Income is allocated proportionately between equity of investment account holders and owners' equity on the basis of
the average balances outstanding during the year and share of the funds invested. Equity and assets of restricted
investment account holders are carried off-balance sheet as they are not assets and liabilities of the Bank.
(u) Segment Reporting

The Bank prepares its segment information based on geographical and business segments as primary and secondary
reporting segments, respectively in accordance with IFRS 8 (Operating segments).
A business segment is a Bank of assets and operations engaged in providing products or services that are subject to risks
and returns that are different from those of other business segments. A geographical segment is engaged in providing
products or services within a particular economic environment that are subject to risks and returns different from those
of segments operating in other economic environments.
The Bank has appointed the Management committee charged with the responsibility of allocating resources and
assessing performance as the Chief Operating Decision Maker as required under IFRS 8. The CODM is reviewed and
advised by the Board for decisions on significant transactions and or events.
(v) Offsetting
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally
enforceable right or shariah requirement to set off the recognized amounts and there is an intention to settle on a net
basis, or realize the asset and settle the liability simultaneously.
(w) Cash and Cash Equivalent

Cash comprises:
i Cash in hand
ii Balance held with Central Bank of Nigeria
iii Balance with banks in Nigeria and outside Nigeria
iv Demand deposit denominated in Naira and other foreign currencies
Cash equivalent are short term, highly liquid instruments which are:
a readily convertible into cash, whether in local and foreign currencies; and
b so near to their maturity dates as to present insignificant risk of changes in value as a result of changes in profits rates.
(x) Ordinary Share Capital

i Share Issue Costs
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in
equity as a deduction, net of tax, from the proceeds.
PAG E
108

ii Dividend on Ordinary Shares

Dividends on ordinary shares are appropriated from revenue reserve in the period they are approved by the Bank's
shareholders. Dividends for the year that are approved by the shareholders after the balance sheet date are dealt with in
the subsequent events note.
Dividends proposed by the Directors but not yet approved by members are disclosed in the financial statements in
accordance with the requirements of the Company and Allied Matters Act 1990.
(l.) Gifted Assets

The recording of the gift would be based on nature, lifetime and materiality of the gift. If the gift is usable or has a material
value addition to the business like Property, plant and equipment, it would be recognized in an asset of appropriate
category, In terms of credit several approaches are acceptable recognizing it to Owners equity via Profit or Loss Account
or Other Comprehensive Income. The Bank adapted recognition through other comprehensive income to the owners’
equity.
(m) Investment property

An Investment Property is an investment in land or buildings held primarily for generating income or capital appreciation
and not occupied substantially for use in the operations of the Bank. A piece of property is treated as an investment
property if it is not occupied substantially for use in the operations of the Bank, an occupation of more than 15% of the
property is considered substantial.
The initial Recognition is to be at its cost price while for subsequent measurement the Bank adapted the fair value model
which carry the investment properties in the balance sheet at their market value and revalued periodically on a
systematic basis at least once in every three years in accordance with (IAS 40). Investment properties are not subject to
periodic charge for depreciation.
When there is a decline in value of an investment property, the carrying amount of the property is written down to
recognize the loss. Such a reduction is charged to the statement of income. Reductions in carrying amount are reversed
when there is an increase, following a revaluation in accordance with the Bank’s policy, in the value of the investment
property, or if the reasons for the reduction no longer exist.
An increase in carrying amount arising from the revaluation of investment property is credited to owners' equity as
revaluation surplus. To the extent that a decrease in carrying amount offsets a previous increase, for the same property
that has been credited to revaluation surplus and not subsequently reversed or utilized, it is charged against that
revaluation surplus rather than the statement of income.
An increase on revaluation which is directly related to a previous decrease in carrying amount for the same property that
was charged to the income statement is credited to income statement to the extent that it offsets the previously
recorded decrease.
Investment properties are disclosed separate from the property and equipment used for the purposes of the business in
line with IAS 40 (Investment Properties)
(n) Earning per share

The Bank presents basic earnings per share (EPS) for its ordinary shares. Basic EPS is calculated by dividing the profit or
loss attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding
during the period. Diluted EPS is determined by adjusting the profit or loss that is attributable to ordinary shareholders
and the weighted-average number of ordinary shares outstanding for effects of all dilutive potential ordinary shares.
PAG E
109

2019 2018
N'000 N'000
3 Cash and balances with Central Bank of Nigeria
Cash 5,062,591 3,969,149
Current account with CBN 9,455,427 8,593,192
Deposit with CBN 27,500,960 10,804,990
CBN AGSMEIS Balance 84,138 42,420
Balance as at 31 December 42,103,116 23,409,751
Cash on hand constitutes the aggregate cash balances in the vaults of the Bank branches while Deposits with the
Central Bank of Nigeria represent Mandatory Reserve Deposits(as prescribed by the CBN) and are not available for
use in the bank’s day to day operations
4 Due from banks and other financial institutions 2019 2018

N'000 N'000
Balances with banks within Nigeria:
First Bank Plc 95,117 236,096
a 95,117 236,096
Balances with banks outside Nigeria:

First Bank UK 5,955,940 6,320,529
Banco De Sabadel 23,920 200,980
Standard Chartered 3,904,834 153,932
Bank Al-Bilad 214,350 189,307
Zenith Bank UK 1,173,123 307,218
FCMB UK 4,519 -
Aktif Bank 43,769 -
Bank of Beirut 22,701 -
b 11,343,157 7,171,967
Balance as at 31 December a+b 11,438,274 7,408,063
The balances held with Banks outside Nigeria substantially represent the naira equivalent of foreign currency balances
held on behalf of customers in respect of letters of credit transactions. The corresponding liability is included in LC
margin deposits under "Other Liabilities"(see note 19b). The amount is not available for the day to day operations of the
Bank
5 Investment in sukuk 2019 2018

N'000 N'000
Opening Balance 18,965,012 6,068,953
Addition during the year 21,486,000 13,325,033
Disposal/Redemption (2,584,188) (428,974)
Gross investment in Sukuk 37,866,824 18,965,012
Premium 2,367,231 473,967
Rental Receivable 852,414 380,894

PAG E
110

A N N UA L R E P O RT A N D A C C O U N T S 2 0 1 9
PAG E
111

8 Investment in istisna 2019 2018

N'000 N'000
Istisna recievable 1,146,745 2,024,325
Allowance for impairment (16,576) (11,827)
Deffered Profit (49,780) (146,841)
9 Investment in ijara assets 2019 2018

N'000 N'000
Ijara wa iqtina 15,980,326 12,102,569
Ijara home finance 19,227 22,475
Ijara auto & others 2,738,898 741,353
Gross investment in ijara 18,738,450 12,866,397
Ijara accrued profit 2,714,707 2,454,197
10 Qard-hassan 2019 2018

N'000 N'000
Opening Balance 174,597 149,082
Granted to staff - -
Granted to customers 15,013 83,178
Gross qard-hassan 189,610 232,260
Repayments
Staff repayment 14,222 16,043
Customer repayment 17,013 41,620
Total repayment during the year 31,235 57,663
Gross receviables 158,375 174,597
Balance as at 31 December 79,430 171,948
11 Investment properties 2019 2018

N'000 N'000
Investment properties 1,603,513 1,603,513
12 Investment in assets held for sale 2019 2018

N'000 N'000
Advances for LC murabaha 1,355,993 3,045,817
Inventory for sale - (note 12 (I)) 8,478,819 4,654,012
Impairment allowance (369,943) -

PAG E
112

(I) Schedules of inventory for sale 2019 2018

Repossessed property 2,159,524 831,513

Inventory - other properties 698,909 1,444,221
Special murabaha inventory 5,126,802 1,310,000
Inventory purchase-fertilizer - 749,417
In ve n to r y H a jj m at & c h e m ic a l - 1 74 ,0 0 0
Inventory hide & skin 493,584 144,861
Total inventory for sale 8,478,819 4,654,012
12. Property, Plant and Equipment
Freehold Building Office Motor Furnitures Computer Fixed Total

Land Freehold Equipment Vehicle & Fixtures Equipment Assets WIP
N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 000
Cost
1-January-2019 57,086 559,211 842,730 475,431 214,490 2,027,518 442,763 4,619,231
Additions/Reclassifiaction - 115,279 154,784 122,068 34,161 359,128 220,140 565,279
Disposals - - - - - - - -
31 December 2019 57,086 674,490 997,514 597,499 248,651 2,386,646 222,623 5,184,510
Accumulated depreciation
1-January-2019 - 26,735 429,220 238,253 139,362 - 1,207,073 2,040,642
Depreciation - 12,918 156,991 59,016 29,377 - 337,594 595,896
Adjustment - - - - - - - -
Disposals - - - - - - - -
31 December 2019 - 39,653 586,211 297,269 168,739 - 1,544,667 2,636,538
Cost
1 January 2018 3,086 495,327 676,346 405,207 181,608 1,608,113 276,101 3,645,788
Additions/Reclassifiaction 54,000 63,884 166,384 70,224 32,882 419,405 166,662 973,443
Disposals - - - - - - - -
31 December 2018 57,086 559,211 842,730 475,431 214,490 2,027,518 442,763 4,619,231
Accumulated depreciation
1 January 2018 - 16,710 302,785 178,359 113,087 910,851 - 1,521,791
Depreciation - 10,025 126,481 64,083 26,550 296,222 - 523,362
Adjustment - 0 (46) (4,189) (276) - - (4,511)
Disposals - - - - - - - -
31 December 2018 - 26,735 429,220 238,253 139,362 1,207,073 - 2,040,642
Net book value

31 December 2019 57,086 634,836 411,303 300,230 79,912 841,979 222,623 2,547,972
31 December 2018 57,086 532,476 413,510 237,179 75,128 820,446 442,763 2,578,588
PAG E
113

14 Leasehold improvement 2019 2018

Cost N'000 N'000
Opening balance 848,458 810,819
Addition 29,695 37,639
As at 31 December 878,153 848,458
Amortisation and impairment losses

Adjustments - (6,380)
Amortisation for the year 22,515 20,832
As at 31 December 812,855 790,340
Carrying amount
As at 31 December 65,297 58,118
15 Intangible assets 2019 2018

N'000 N'000
Cost Computer Computer
software software
Addition 192,596 94,666
As at 31 December 880,494 687,898
Amortisation and impairment losses

Amortisation for the year 81,978 64,204
As at 31 December 399,128 317,150
Carrying amount
As at 31 December 481,366 370,748
16 Other assets 2019 2018

N'000 N'000
Sundry debtors 29,619 360,498
Right of use asset 403,944 450,255
Other prepayments 17,246 307,256
Prepaid staff 110,715 106,658
Inventory and other security items 75,819 48,590
Branch development expenditure 29,614 308,905
Account receivables 626,307 319,005
Settlement suspense 1,257,471 948,276
Investment in financial inclusion centre 20,154 -
Interbranch 6,213 717
Total 2,577,102 2,850,159
As at 31 December 2,400,175 2,809,209

PAG E
114

Movement in other assets:

2019 2018
N'000 N'000
Opening balance 2,809,209 7,034,672
Changes in the year (232,106) (4,184,513)
As at 31 December 2,400,175 2,809,209
17a Tax payable

(i) Statement of financial position 2019 2018
N'000 N'000
Charge for the year 117,050 90,345
207,395 226,022
Less payment during the year (87,144) (135,677)
As at 31 December 120,251 90,345
(ii) Income statement 2019 2018

N'000 N'000
Company income tax (minimum tax) 96,159 82,301
Education tax - 2,599
Information technology levy 20,891 5,445
117,050 90,345
Deferred tax expenses ( note 17 b)
Deferred tax expenses (origination/(reversal) of temporary differences) (449,818) (27,009)
Balance at 31 December (332,768) 63,336
The total tax expenses of N-333 million for the current year comprises of the Company income tax and Information
Technology tax of N117 million while the N-450 million is a deferred tax credit arising in the year.
17b Deferred tax asset 2019 2018

N'000 N'000
Opening balance 12,368 -
Deferred tax expenses(origination/(reversal) ) note 17 a (ii) 449,818 12,368T
Balance at 31 December 462,186 12,368
PAG E
115

(I) Reconciliation of tax expense and the accounting profit 2019 2018
N'000 N'000
Accounting profit before tax 2,110,018 897,702
Add non-deductible expenses for tax purpose
Depreciation of ppe, collective impairment & others 1,531,233 661,234
3,641,252 1,558,936
Less:
Exempted income on Sukuk 4,728,155 1,163,084
Collective impairment write-back - 231,584
Capital allowances - 330,428
Technology levy 20,891 5,445
Adjusted profit (1,107,796) (171,605)
Company income tax at 30% of adjusted profit - -

Minimum tax 96,159 82,301
Education tax - 2,599
Technology levy 20,891 5,445
Total tax payable 117,050 90,345
Deferred tax (origination)/reversal (449,818) (27,009)
Income tax expense (332,768) 63,336
(ii) Deferred tax movement 2019 2018

The movement in the deferred tax account during the year by various N'000 N'000
components was as follows:
Property, plant & equipment 30,460 173,516
Collective impairment (211,480) 15,834
Unabsorbed capital allowance (268,798) (216,359)
Deferred tax (origination)/reversal (449,818) (27,009)
18a Customers' current account 2019 2018

N'000 N'000
Analysis by type of account
Current account 69,603,883 45,950,138
18b Unrestricted investment account 2019 2018
N'000 N'000
Savings account 35,099,480 36,716,950
JAPSA term deposit (note 18 d) 22,490,115 2,365,904

18c Analysis by type of customer 2019 2018
N'000 N'000
Government 13,845,100 7,871,523
Corporate 40,422,583 24,243,312
Individual 72,925,795 52,918,157
PAG E
116

18d Analysis of JAPSA maturity by product 2019 2018

N'000 N'000
JTD 30 days 14,934,600 278,592

JTD 60 days 967,381 185,347
JTD 90 days 3,938,349 864,114
JTD 180 days 1,324,536 721,334
JTD above 360 days 1,325,249 316,516
Balance as at 31 Dec 2019 22,490,115 2,365,904
The Bank has different JAPSA tenored deposits which give customers the opportunity to choose from a basket of return
available for different tenors.
19 Other financing 2019 2018

N'000 N'000
i Central Bank of Nigeria 7,298,545 2,000,000
ii Bank of Agriculture 1,009,342 -
iii Bank of Industry 2,700,000 -
iv Islamic Corporation for Development for the Private Sector(ICD) 946,456 -
v Islamic Trade Finance Corporation 9,423 -
11,963,766 2,000,000
Movement in other financing during the year

Opening balance 2,000,000 -
Additions 9,887,052 2,000,000
Profit payment 544,263 -
Repayment 620,977 -
19(I) This represents the balance on the on-lending facilities granted by the Central Bank of Nigeria in collaboration
with the Federal Government of Nigeria (FGN) under the Commercial Agriculture Credit Scheme (CACS). The
Federal Government of Nigeria is represented by the Federal Ministry of Agriculture and Rural Development)
who has the aim of providing concessionary funding for agriculture so as to promote commercial agricultural
enterprises in Nigeria. The profit rate on the facility is 9% per annum inclusive of all related charges associated
with the financing and the profit distribution ratio between the CBN as Capital Provider and the NIFI as the
Implementing Party is in the ratio of 2:7. The exit date of the scheme is September 2025
19(ii) This represents the amount granted under a N1billion facility in June 2016. The facility is for a tenor of one year
and is to be used solely for financing agricultural related transaction. The profit rate of the facility is 12% payable
yearly.
19(iii) This represents an intervention credit granted to the Bank by the Bank of Industry (BOI) for the purpose of
refinancing/restructuring existing facilities to Small and Medium Scale Enterprises (SMEs), manufacturing
companies and companies in the power and aviation industries. The maximum tenor of term facility under the
programme is 15 years while the tenor for working capital is one year, renewable annually subject to a maximum
tenor of years. The Bank under this intervention programme pays BOI quarterly based on the structure of the
finance at 12% and the Bank is under obligation to on-lend to customers at a profit rate of 20% per annum. The
Bank is the primary obligor to CBN/BOI and assumes the risk of default.
PAG E
117

19(iv) This represents the amount granted under the USD 20 million line of financing provided by Islamic Corporation
for the Development of private sector (ICD) for onward financing to eligible SME’s in Nigeria. The facility has a
maximum tenor of 3 years inclusive of 6 years moratorium with quarterly repayment at a financing rate of 6.5%
p.a.
19(v) This represents the amount of USD 10 million Trade Financing facility granted by International Islamic Trade
Finance Corporation (ITFC). The facility is for a tenor of one year (revolving) and is to be used solely for financing
trade finance transactions. Financing rate on the facility is applicable USD LIBOR plus 385 basis points.
19b Other liabilities 2019 2018

N'000 N'000
Managers' cheque 279,316 798,008
Letter of credit margin deposits 4,844,556 5,754,137
Accounts payable 82,680 80,010
Vendors payable 243,995 284,144
Other tax liabilities 93,414 33,896
Profit payable to investment accountholder 144,706 63,853
E-banking payables 1,422,237 357,102
Due to charity 800 3,298
Sundry payables 1,821,463 644,436
Accrued audit fee and expense 17,500 13,263
Sundry deposit 3,348,011 29,076
Impairment allowance on Off Balance sheet items 49,317 11,914
Unearned income 50,031 72,171
Other payables 5,938 84,652
20 Owners' equity
A Share capital
(I) Authorised 2019 2018

N'000 N'000
50,000,000,000 ordinary shares of N0.50 each 25,000,000 25,000,000
(ii) Issued and fully paid share capital 2019 2018

N'000 N'000
29,464,249,300 ordinary shares of N0.50 each at 1 January 14,732,125 14,732,125
There was no movement in the share capital account during the year. The holders of ordinary shares are entitled to
receive dividends and each shareholder is entitled to a vote at the meetings of the Bank. All ordinary shares rank equally.
PAG E
118

21 Share premium 2019 2018

N'000 N'000

Movement during the year - -
Share premium is the excess paid by shareholders over the nominal value for their shares. There was no movement in
share premium account during the year.
22 Retained earnings 2019 2018

N'000 N'000
Opening balance (4,574,108) (4,244,308)
Net profit for the year 2,442,786 834,366
Statutory regulatory reserve (732,836) (250,310)
AGSMEIS (122,139) (44,885)
Risk regulatory reserve (1,094,817) (868,971)
Balance as at 31 December (4,081,114) (4,574,108)
23 Risk regulatory reserve 2019 2018

N'000 N'000
Opening balance 1,619,336 2,267,029
Impact of adopting IFRS 9 - (1,516,664)
Restated opening balance under IFRS 9 1,619,336 750,365
Adjustment against retained earnings 1,094,817 868,971

24 Statutory reserve 2019 2018
N'000 N'000
Adjustment against retained earnings 732,836 250,310
Balance as at 31 December 1,237,662 504,826
25 Other reserves
(a) Other comprehensive income 2019 2018
N'000 N'000
(b) Agricultural /small and Medium Enterprises Investment Scheme 2019 2018
N'000 N'000
Provision for the year 122,139 44,886
Total 321,757 199,618
In April 2017, the Central Bank of Nigeria issued guidelines to govern the operations of the Agricultural/Small and
Medium Enterprises Scheme (AGSMEIS). All Deposit Money Banks(DMBs) are required to set aside 5% of their annual
Profit After Tax (PAT). The amount of N122 million (2018: N45 million) represents 5% provision made for the year
ended 31 December 2019.
PAG E
119

26 Income from financing contracts 2019 2018

Murabaha transactions N'000 N'000
Murabaha profit - corporate 3,279,907 2,557,299
Murabaha profit - retail 1,007,198 817,141
Murabaha income - LC 7,574 2,931
Bai Mu'ajjal 86,219 2,066
Total profit from murabaha transactions 4,380,898 3,379,436
Ijara transactions
Ijara wa iqtina 2,598,460 2,278,018
Ijara finance lease 309,474 81,851
Ijara home finance 2,163 1,194
Ijara others 752 545
Total profit from Ijara transactions 2,910,849 2,361,609
Others
Istisna 169,935 313,975
Musharaka - 200,198
Interbank murabaha - 36,726
Total profit from other financing/investment contracts 169,935 550,899
Total income from financing contracts 7,461,682 6,291,944
27 Income from investment activities 2019 2018

N'000 N'000
Trading assets 1,224,273 32,342
Sukuk 4,728,156 1,163,084
Rental 103,513 28,207
Total income from investing activities 6,055,941 1,223,634
28(i). Return on equity investment account holders 2019 2018

N'000 N'000
Profit paid to mudarabah account holders 2,907,985 1,916,804
Profit from financing investments paid to mudarabah account holders 2,907,985 1,916,804
(ii) Mudarib fees/ profit of Joint Investments

Bank's fees as Mudarib. 3,976,337 3,427,742
Profit from the Bank's Joint investments 6,633,301 2,171,031
Bank's fee as Mudarib/Profit of owned Joint Investments 10,609,638 5,598,773
The Bank operates both Restricted and Unrestricted type of Mudaraba Investment. In the Unrestricted, the Mudarib
(the Bank) is authorized by the providers of Funds (Rabbul Mal) to invest their funds in the manner which the Mudarib
deems appropriate. Profits are shared as a common Percentage Rate rather than a Fixed amount. The Investments were
jointly funded by the Bank and the Equity of Investment Account holders. The amount of N2.91Billion was paid by the
Bank to the Mudaraba Account Holders for 2019 financial year.
PAG E
120

29 Fees and commission 2019 2018

N'000 N'000
Banking services 215,038 264,739

Net income from E-Business 406,652 322,532
LC/ trade finance income 387,252 401,168
1,008,943 988,439
30 Other operating income 2019 2018

N'000 N'000
Wakala income 174,670 240,305
Miscellaneous income 13,587 -
188,257 240,305
31 Other comprehensive income

2019 2018
N'000 N'000
Gifted assets income - 112,313
- 112,313
32 Staff costs 2019 2018

N'000 N'000
Salaries 3,417,081 2,444,419
Staff pension 168,749 156,469
Training and seminar expenses 162,815 111,800
Other staff expenses 114,909 96,077
33 Depreciation and amortisation 2019 2018

N'000 N'000
Depreciation of property, plant & equipment 605,893 523,362
Amortisation of leasehold improvement 26,716 20,832
Amortisation of intangible assets 81,978 64,204
33(I) Operating expenses 2019 2018

N'000 N'000
Advertising and Marketing 284,607 99,291
Administrative - note 33 (ii) 1,579,503 1,093,298
Subscription and professional fees 158,727 122,246
ACE's Expense 36,937 40,038
Right-of-use assets amortisation 341,564 326,041
Licences 546,723 322,129
Bank charges 63,514 56,974
Audit fee & other expenses 31,552 27,400
NDIC premium 391,855 271,709
Bandwidth and connectivity 280,912 161,173
Directors expenses 256,912 223,937

PAG E
121

33(ii) Administrative 2019 2018

N'000 N'000
Telephone expenses 4,268 6,097
SWIFT/NIBBS charges 23,970 16,466
Courier charges 14,788 16,843
Service contract (HR and Admin) 483,709 377,900
Local and foreign travels 96,574 51,957
Printing & Stationaries 114,677 67,770
Repairs and maintenance 342,610 202,837
Security related expenses 80,365 68,139
Money and other Insurance 41,613 23,486
Fuel expense 110,888 81,223
Data recovery & IT related expenses 1,155 6,790
Newspaper, magazine & periodicals 1,831 5,100
Entertainment 16,465 5,966
Regulatory expenses 50,538 8,715
Sundry expenses 160,839 84,093
Cash shortage W/O 3,035 1,585
Listing expenses 4,072 55,670
Industry certification 28,105 12,660

PAG E
124

35 Related Parties
Jaiz Bank Plc has some exposures that are related to its Directors. The Bank however follows a strict process before
granting such credits to its Directors. The requirements for creating and managing this category of risk assets include the
following amongst others:
Related parties: 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, or one other party controls both. The
definition includes investment as well as key management personnel.
Transaction with key management personnel: The Bank's key management personnel, and persons connected with
them, are also considered related parties. The definition of key management includes the close members family of key
personnel and any entity over which key management exercise control. Close family members are those who may be
expected to influence, or be influenced by that individual in their dealings with Jaiz Bank plc and its related entities/parties.
2019
N'000 N'000
Related Party Relationship Limit Amount Classification
with the Bank Receivable
Ahmad Rufa'i Sani Bello Muhammad Sani Non-Executive Director 510,000 279,972 Performing
Noble Hall Limited Dr. Umaru Abdulmutallab Chairman 279,995 265,736 Performing
MBS Merchants Ltd Falalu Bello Non-Executive Director 604,646 122,359 Substandard
Bello Muhammad Sani Bello Muhammad Sani Non-Executive Director 80,250 80,250 Performing
Abdulfattah Olanrewaju Amoo Abdulfattah Olanrewaju Amoo Executive Director 59,400 55,076 Performing
Mahe Mahmud Abubakar Mahe Mahmud Abubakar Deputy Managing Director 66,350 35,903 Performing
Mukhtar Danladi Hanga Sani Mukhtar Danladi Hanga Sani Non-Executive Director 54,000 32,909 Performing
Hassan Usman Hassan Usman Managing Director 30,000 18,000 Performing
At 31st December 1,684,641 890,205
Off Balance Sheet
Incar Petroleum Dr. Umaru AbdulMutallab Chairman 480,516 Performing
At 31st December 480,516
2018
N'000 N'000
Related Party Relationship Limit Amount Classification
with the Bank Receivable
Noble Hall Limited Dr. Umaru Abdulmutallab Chairman 29,995 296,749 Performing
Umaru Abdul Mutallab Dr. Umaru Abdulmutallab Chairman 810,000 169,116 Performing
Hassan Usman Hassan Usman Managing Director 30,000 31,153 Performing
Mahe Mahmud Abubakar Mahe Abubakar Deputy Managing Director 67,950 49,925 Performing
Abdulfattah Olanrewaju Amoo Abdulfattah Olanrewaju Amoo Executive Director 59,400 59,400 Performing
MBS Merchants Ltd Falalu Bello Director & Chairman, BIC 1,073,648 1,162,427 Watchlist
Mukhtar Danladi Hanga Sani Mukhtar Danladi Hanga Sani Non-Executive Director 54,000 32,909 Performing
Darul Huda Foundation Aminu Dantata Director Rep. by Tajuddeen Dantata 29,391 9,172 Performing
Tamidan Nigeria Limited Aminu Dantata Director Rep. by Tajuddeen Dantata 630,000 630,000 Substandard
Baze University Limited Nafiu Baba-Ahmad Independent Director 40,000 27,601 Performing
Ahmad Rufa'i Sani Bello Muhammad Sani Non-Executive Director 510,000 343,516 Performing
Bello Muhammad Sani Bello Muhammad Sani Non-Executive Director 80,250 80,250 Performing
Rufai Poultry Limited Bello Muhammad Sani Non-Executive Director 226,600 42,272 Performing
At 31st December 3,641,234 2,934,490
Off Balance Sheet

Incar Petroleum Dr. Umaru Abdulmutallab Chairman 386,281 Performing
At 31st December 2018 386,281
PAG E
125

36. Significant Shareholding (5% & Above)

2019 2018
Holdings % Holdings %
Dr. Umaru Abdul Mutallab 4,000,000,000 13.58 4,000,000,000 13.58
Dantata Investment & Securities Limited 3,904,369,327 13.25 3,904,369,327 13.25
Dr.Muhammadu Indimi 3,233,813,044 10.98 2,733,813,044 9.28
Islamic Development Bank 2,506,666,588 8.51 2,506,666,588 8.51
Dangote Industries Ltd 2,500,000,000 8.48 2,500,000,000 8.48
Altani Investment Limited 2,200,000,000 7.47 2,200,000,000 7.47
Dr. Aminu Alhassan Dantata 1,565,210,516 5.31 1,565,210,516 5.31
Balance as at 31 December 19,910,059,475 67.58 19,410,059,475 65.88
37 Earnings per share

Basic earnings per share
Basic earnings per share of 8.29 kobo (2018:2.83 kobo) is based on the profit of N2,443million (31 December 2018:
N834million) attributable to shareholders with ordinary shares of 29,464,249,300 (2018:29,464,249,300)
Profit attributable to ordinary shareholders 2019 2018

N'000 N'000
Profit for the period 2,442,786 834,365
Profit attributable to ordinary shareholders 2,442,786 834,365
Weighted average number of ordinary shares 2019 2018

InThousand InThousand
Issued ordinary shares at 1 January 29,464,250 29,464,249
Weighted average number of ordinary shares at 31 December 29,464,250 29,464,249
Basic and diluted earnings per share (Kobo) 8.29 kobo 2.83 kobo
There have been no transactions during the year which could cause dilution of the earnings per share.
38a Information regarding Directors 2019 2018

N'000 N'000
Emoluments
Fees:
Chairman 10,000 5,000
Other directors 80,000 44,000
Emolument as executives 135,615 87,778
Highest paid Director 48,577 42,326
No. of Directors excluding the Chairman with gross emoluments within the following ranges were:
N N 2019 2018
Number Number
5,000,000 - 10,000,000 - -
10,000,001 - 15,000,000 - -
15,000,001 - above 3 2
PAG E
126

38b Information regarding Employees

The number of employees excluding Directors in receipt of emoluments excluding allowances in the following ranges
were:
N N
2019 2018
Number Number
Below - 400,000 502 334
400,001 - 500,000 5 74
500,000 - 600,000 178 71
600,000 - 700,000 74 72
700,000 - 800,000 15 10
800,000 - 900,000 - -
900,000 - 1,000,000 - 36
1,000,000 - 5,000,000 277 211
5,000,000 - 10,000,000 3 -
Above - 10,000,000 - -
1,054 808
Number of persons employed as at the end of the year were:

2019 2018
Number Number
Managerial 10 6
Senior 83 75
Junior 961 727
1,054 808
39 Events after reporting period

There were no events after the reporting date which could have had a material effect on the financial statements as at 31
December 2019.
40 Card issuance and usage in Nigeria

In line with Sec.11 of the CBN' Circular on The Guidance for issance and usage of cards in Nigeria, below is the Bank's
information on it's Card
CardType Transaction Transaction

Volumes Value
N'000
Verve Debit Card 5,692,193 70,360,579
MasterCard Card 1,549,514 21,915,766
Total 7,241,707 92,276,345

PAG E
127

In line with CBN circular Ref FPR/DIR/CIR/GEN/01/020, below are the customer complaints data for the year:
(i) ATM complaints data- 31 December 2019
Number Amount
N'000
Unresolved as at 1 January 219 262
Number of complaints 72,156 113,098
Number of complaints resolved 72,086 112,990
Unresolved as at 31 December 289 370
(ii) ATM Complaints Data- 31 December 2018 Number Amount

N'000
Unresolved as at 1 January 114 262
Number of complaints 33,898 42,644
Number of complaints resolved 33,793 42,300
Unresolved as at 31 December 219 262

PAG E
128

41a Financing Analysis

(i) By Security 2019 2018
N'000 N'000
Legal mortgage 28,597,817 31,149,047
Total asset debenture 880,045 1,849,837
Cash and deposits 10,327,398 147,945
Equitable mortgage 1,785,861 -
Equity 158,374 17,147
Assets - Other 16,869,347 10,700,512
Total 58,618,843 43,864,488
(ii) By product 2019 2018

N'000 N'000
Murabaha finance 31,984,938 27,223,619
Bai Muajjal 1,305,501 79,968
Ijara Finance 14,570,891 11,858,064
Paddy aggregation Murabaha 4,659,529 -
CACS 625,305 1,495,584
Istisna 1,146,745 2,024,324
Ijara service 4,167,559 1,008,333
Qard 158,374 174,596
Total 58,618,843 43,864,488
2019 2018
(iii) By sector N'000 N'000
General 9,799,61 8,704,025
Oil & gas 9,874,132 8,508,618
Real estate activities 12,174,357 7,193,616
General commerce 12,122,055 6,686,380
Agriculture 8,163,108 5,432,503
Construction 2,612,383 2,918,065
Manufacturing 1,686,821 2,548,29
Education 1,383,619 1,285,783
Information and communication 387,269 570,386
Recreation 5,278 8,442
Human health and social work activities 171,167 8,379
Transportation and storage 239,040 -
Total 58,618,843 43,864,488
2019 2018
(iii) By Business Unit N'000 N'000
Corporate 40,550,821 35,394,682
Retail 18,068,022 8,469,806
Total 58,618,843 43,864,488

PAG E
129

2019 2018
(v) By tenor N'000 N'000
0 - 60 days 233,449 811,524
61 - 90 days 1,419,801 4,421,642
91 - 180 days 6,263,984 7,559,193
180 - 360 days 12,581,924 5,281,827
Over 360 days 38,119,685 25,790,302
Total 58,618,843 43,864,488
41b Capital Adequacy Ratio

The Bank presents details of its regulatory capital resources in line with the Central Bank of Nigeria's guidance on Pillar I
capital requirements.
2019 2018
Regulatory capital N'000 N'000
Tier 1 capital
Share capital 14,732,125 14,732,125
Share premium 627,365 627,365
Retained earnings (4,081,114) (4,574,108)
Statutory reserves 1,237,662 504,826
Other reserves 209,444 87,305
12,725,480 11,377,513
Less: Deferred tax assets 462,186 12,368

Intangible assets 481,366 370,748
Total qualifyingTier 1 capital 11,781,929 10,994,397
Tier 2 capital
Qualifying other reserves
- Other comprehensive income 112,313 112,313
Total qualifyingTier 2 capital (100% of total qualifyingTier I capital) 112,313 112,313
Total qualifying capital 11,894,242 11,106,710
Risk - weighted assets:

Credit risk 42,375,487 41,785,629
Operational risk 15,010,602 10,537,145
Market risk 14,966,436 246,545
Total risk-weighted assets 72,352,525 52,569,319
Risk-weighted capital adequacy ratio 16.44% 21.13%

PAG E
130

42 Contingencies and commitments

(i) Litigation and claims

Litigation is a common occurrence in the banking industry due to the nature of the business undertaken. The Bank has
proper controls and policies for managing legal claims. Once professional advice has been obtained and the amount of
loss reasonably estimated, the Bank makes adjustments to account for any adverse effects which the claims may have on
its financial standing. The Bank, in its ordinary course of business, is presently involved in 21 (31 December, 2018: 29)
litigation suits: 16 (31 December, 2018: 12) cases instituted against the Bank, 4 (31 December,2018: 13) cases
instituted by the Bank, Nil (31 December, 2019: 3) judgement in favour of the Bank awaiting execution and 1 (31
December, 2019: 1) civil appeal against the Bank.
The Directors are of the opinion that none of the aforementioned cases is likely to have a material adverse effect on the
Bank and are not aware of any other pending or threatened claims and litigations.
(ii) Other contingent liabilities

In the normal course of business, the Bank enters into various types of transactions that involve undertaking certain
commitments such as letter of credit, guarantees and undrawn financial commitments.
2019 2018
N'000 N'000
Advanced payment guarantees 3,112,696 7,303,629
Letters of credit 13,444,634 210,437
Bonds and guarantees 1,710,055 4,456,898
Wakala guarantee 12,651,847 11,648,416
Undrawn commitment 1,195,627 5,491,038
(iii) Capital commitments

There were no capital commitments at the end of the reporting period of 31 December 2019.
(iv) Guarantees and other financial commitments

The Directors are of the opinion that all known liabilities and commitments which are relevant in assessing the
company's financial position, financial performance and cash flows have been taken into account in the preparation of
these financial statements.
43 Contravention of CBN/NDIC guidelines
31 December 2019
During the year, the Bank incurred the following penalty due to contraventions and/or infractions of CBN regulations
and guidelines.
N'000
i Penalty for non-compliance with FCTP limit 2,000
ii Fines for some KYC breaches 32,000
34,000
31 December 2018 N'000

In 2018 financial year, the Bank did not contravene any CBN guidelines Nil
PAG E
131

44 Dividend
The Board of Directors, pursuant to the powers vested in it by the provisions of Section 379 of the Companies and
Allied Matters Act of Nigeria, Cap C20 LFN 2004, proposed a dividend of 3 kobo per share from the profit made in the
financial year ended December 31, 2019. This is subject to approval by shareholders at the next Annual General Meeting
Dividends are paid to shareholders net of withholding tax at the rate of 10% in compliance with extant tax laws.
45 Operating segments
For reporting purposes, the Bank is organised into business segments and has reportable operating segments as follows:
Resources are allocated based on the business segments and Management reviews the segments on periodic basis to
assess their performance. The Management Committee reviews and allocates the necessary resources for the
achievement of the Bank's objectives.
Corporate Banking Retail Banking Total

As at 31 December 2019 N'000 N'000 N'000
Investment in sukuk 41,086,469 - 41,086,469
Murabaha finance 20,050,012 17,219,760 37,269,772
Bai Muajjal - 1,305,501 1,305,501
Ijara finance 8,220,991 7,778,822 15,999,813
Ijara service 35,136 2,703,501 2,738,637
Istisna 538,324 608,421 1,146,745
Qard - 158,375 158,375
Intervention fund 5,284,834 3,126,350 8,411,184
Investment properties 1,603,513 - 1,603,513
Investment in assets held for sale - - -
Total assets 76,819,278 32,900,729 109,720,008
Corporate Banking Retail Banking Total

As at 31 December 2018 N'000 N'000 N'000
Investment in sukuk 19,819,872 - 19,819,872
Murabaha Finance 26,268,814 2,602,746 28,871,560
Ijara finance 6,822,573 5,025,808 11,848,381
Ijara service 888,970 119,363 1,008,333
Istisna 1,499,527 547,292 2,046,820
Qard - 174,597 174,597
Investment properties 1,603,513 - 1,603,513
Investment in assets held for sale - - -
Total assets 56,903,269 8,469,806 65,373,075
In line with the requirements of the Accounting and Auditing Organization for Islamic Financial Institutions (“AAOIFI”),
the investments in islamic finance are shown here as gross, while on the face of statement of financial position they are
shown net of impairment and deferred profit. This accounts for the difference between the balance sheet size in the
notes to the financial statements and what is disclosed on the face of the statement of financial position.
PAG E
132

46 Comparatives figures
Certain comparative figures have been restated where necessary for a more meaningful comparison.
47 Employee benefit plans 2019 2018

N'000 N'000
Opening defined contribution obligation 26,154 22,115
Charge for the year 228,570 193,762
Payment to fund administrator 220,524 189,722
A defined contribution plan is a pension plan under which the Bank pays contributions at a fixed rate. The Bank does not
have any legal obligation to pay further contributions over and above the fixed rate as determined by the Pension Reform
Act, 2014. The total expense charged to income for the year was N228.6million (2018: N193.8million).
PAG E
133
Five Years Financial Summary

Statements of Financial Position
2019 2018 2017 2016 2015

N`000 N`000 N`000 N`000 N`000
Assets
Cash and Balances with Central Bank of Nigeria 42,103,116 23,409,751 23,909,987 21,506,853 18,168,226
Due from banks and financial institution 11,438,274 7,408,063 5,441,073 1,478,026 1,886,533
InterBank Murabaha - - - 1,000,000 -
Total Sukuk Investment 41,086,469 19,819,872 6,387,918 1,060,252 1,242,396
Investment in Musharaka - - 1,200,000 1,191,704 637,000
Murabaha Receivables 32,168,321 25,330,697 2,677,161 16,451,245 10,595,013
Investment in Bai Mu'ajjal 1,008,613 59,186 - - -
Investment in Istisna 1,080,389 1,865,656 1,335,361 754,448 638,722
Investment in Ijara asset 21,283,416 15,264,911 13,153,201 14,251,232 11,812,999
Qard hassan 79,430 171,948 149,082 127,674 147,242
Investment properties 1,603,513 1,603,513 - - -
Investment in Assets Held for sale 9,464,869 7,699,830 5,883,288 488,942 27,111
Property, plant and equipment 2,547,972 2,578,588 2,123,997 1,892,970 1,383,189
Leasehold Improvement 65,297 58,118 34,932 42,435 82,506
Intangible assets 481,366 370,748 340,286 368,089 307,880
Other Assets 2,400,175 2,809,209 4,676,323 5,233,384 3,983,853
Deferred taxation asset 462,186 12,368 - 206,573 1,726,574
Total Assets 167,273,406 108,462,458 87,312,608 66,053,824 52,639,243
Liabilities
Customer Current Deposits 69,603,883 45,950,138 33,706,359 24,415,544 15,475,620
Other Financing 11,963,766 2,000,000 - 996,635 1,000,000
Other Liabilities 12,443,964 8,229,960 5,367,886 1,552,659 1,463,675
Tax payable 120,251 90,344 135,677 77,087 43,897
Deferred tax - - 14,641 - -
Total liabilities 94,131,864 56,270,442 39,224,563 27,041,925 17,983,192
Equity of Investment Account Holders

Customers' Unrestricted Investment Accounts 57,589,595 39,082,854 34,408,897 25,868,115 23,248,644
Total Equity of Investment Account Holders 57,589,595 39,082,854 34,408,897 25,868,115 23,248,644
Owners' Equity
Share Capital 14,732,125 14,732,125 14,732,125 14,732,125 11,829,700
Share Premium 627,365 627,365 627,365 627,365 549,886
Retained Earnings (3,522,113) (4,574,108) (4,244,308) (3,669,861) (1,714,073)
Risk Regulatory reserve 2,155,153 1,619,336 2,267,029 1,360,774 741,894
Statutory Reserve 1,237,662 504,826 254,517 - 93,381
Other Reserves 321,757 199,618 42,420 - -
Total Equity 15,551,948 13,109,163 13,679,147 13,143,784 11,407,407
Total Equity and Liabilities 167,273,406 108,462,458 87,312,608 66,053,824 52,639,243

PAG E
134
Five Years Financial Summary

Statements of Comprehensive Income
2019 2018 2017 2016 2015

N'000 N'000 N'000 N'000 N'000
Income:
Income from Financing Contracts 7,461,682 6,291,944 6,239,803 5,289,075 4,006,736
Income from Investment Activities 6,055,941 1,223,634 684,854 188,967 883,009
Gross Income from financing transactions 13,517,623 7,515,577 6,924,657 5,478,042 4,889,745
Return on Equity of Investment Account Holders (2,907,985) (1,916,804) (1,397,009) (1,181,787) (948,913)
Bank's share as a Mudarib/Equity investor 10,609,638 5,598,773 5,527,648 4,296,255 3,940,832
Net Impairment (Charge)/Writeback for the year (1,145,876) 231,584 (161,459) 94,790 (122,493 )
Net Income after Impairement 9,463,762 5,830,357 5,689,108 4,391,045 3,818,339
Other Income - - - - -
Fee and Commission 1,008,943 988,439 748,709 364,171 380,509
Other Operating Income 188,257 240,305 182,003 122,440 100,000
Total Income 10,660,962 7,059,102 6,296,901 4,877,656 4,298,848
Expenses:
Staff costs 3,863,554 2,808,766 2,374,457 1,944,405 1,704,927
Depreciation and Amortisation 714,586 608,398 522,187 531,054 14,259
Operating Expenses 3,972,805 2,744,236 2,506,250 2,059,180 1,385,468
Total Expenses 8,550,945 6,161,400 5,402,894 4,534,639 3,504,654
Operating Profit Before Tax 2,110,017 897,701 894,006 343,017 794,194

Income Tax Expenses 332,768 (63,336) (356,891) 31,745 116,013
Profit for theYear afterTax 2,442,785 834,365 537,117 311,272 910,207
Other Comprehensive Income

Item that may be reclassified to profit or loss
Net gain on gifted property - 12,313 - - -
Total comprehensive income for the year 2,442,785 946,678 537,117 311,272 910,207
Basic and diluted Earnings per share (Kobo) 8.29 kobo 2.83 kobo 1.82 kobo 1.16 kobo 0.07 kobo
PAG E
135
Value Added Statement

For the year ended 31st December 2019
31 Dec. 2019 31 Dec. 2019 31 Dec. 2018 31 Dec. 2018

N`000 % N`000 %
Gross Income from financing transactions 14,714,822 220% 8,744,322 203%
Return on Equity of Investment Account Holders (2,907,985) (43%) (1,916,804) 44%
Bank's share as a Mudarib/Equity investor 11,806,837 177% 6,827,518 158%
Impairment Charges against non-performing
Financing and Investment (1,145,876) (17%) 231,584 5%
10,660,961 159% 7,059,102 164%
Bought in Goods and Services (3,972,805) (59%) (2,744,236) 64%
Value Added 6,688,157 100% 4,314,864 100%
Total Distribution
Employees - Salaries and Benefits 3,863,554 58% 2,808,766 84%
Government - Taxation (332,768) 5% 63,336 0%
Retained in the Bank

Re-invested in non-current asset & development
of operation 714,586 11% 608,398 0%
Profit for the year (inclusive of all Statutory Reserves) 2,442,785 37% 834,365 16%
TotalValue Added 6,688,157 100% 4,314,865 100%

PAG E
136
Notice of
Annual General Meeting
NOTICE IS HEREBY GIVEN that the 8th Annual General Meeting

of Jaiz Bank Plc. will hold at the Bank’s Corporate Head Office,
Kano House, 73 Ralph Shodeinde Street, Central Business District,
Abuja, Federal Capital Territory on Thursday, 16th July, 2020 at
11.00am to transact the following business:
Ordinary Business: 2. Proxy

1. To lay before Members for approval, A member of the Company entitled to attend and vote at the Annual
the Audited Financial Statements of the General Meeting is entitled to appoint a proxy in his/her stead. A proxy
Bank for the period ended December 31, need not be a member of the Company.
2019, together with the Reports of the
D i re c t o r s , A u d i t o r s , a n d A u d i t For the appointment of the proxy to be valid, a proxy form must be
Committee thereon; completed and deposited at the office of the Company’s Registrar,
Africa Prudential Plc, 220B Ikorodu Road, Palmgrove, Lagos, Nigeria, or
2. To declare a dividend; via email at [email protected] not later than 48 hours before
the time fixed for the meeting. A blank proxy form is attached to the
3. To elect and re-elect Directors; Annual Report and may also be downloaded from the Bank’s website at
https://www.jaizbankplc.com.
4. To authorize the Directors to fix the
remuneration of the Auditors; 3. Attendance by Proxy
In line with CAC Guidelines, attendance at the AGM shall be by proxy
5. To elect members of the Statutory only. Shareholders are required to appoint a proxy of their choice from
Audit Committee. the list of nominated proxies below:
i. Alhaji (Dr.) Umaru Mutallab, CON
Notes: ii. Mall. Hassan Usman, FCA
1. Compliance with Covid-19 Related iii. Alhaji (Dr.) Musbahu M. Bashir
Directives and Guideline
The Federal Government of Nigeria, 4. Stamping of Proxy
State Governments, Health Authorities The Bank has made arrangement at its cost, for the stamping of the duly
and Regulatory Agencies have issued a completed and signed proxy forms submitted to the Bank’s Registrars
number of guidelines and directives within the stipulated time.
aimed at curbing the spread of COVID-
19 in Nigeria. Particularly, the Federal 5. Livestreaming of AGM
Capital Territor y Administration The AGM will be streamed live on the Bank’s YouTube Channel
prohibited the gathering of more than 20 https://youtube.com/channel/UCRzqR0dGUnTvAQVUoyBO28w.
people while the Corporate Affairs This will enable shareholders and other stakeholders who will not be
Commission (CAC) issued Guidelines on attending physically to follow the proceedings. The YouTube Channel
Holding AGM of Public Companies by will also be linked to our website at www.jaizbankplc.com for ease of
Proxy. The Convening and conduct of the access.
AGM shall be done in compliance with
these directives and guidelines. 6. Dividend
If the dividend recommended by the Directors is approved by the
Shareholders at the AGM, dividend will be paid on Thursday, July 16,
PAG E
137
Notice of
A N N UA L R E P O RT A N D A C C O U N T S 2 0 1 9
2020. Given the previous notice to Shareholders and the investing public Statutory Audit Committee by giving
by the Bank on the closing period for the purpose of dividend payment, notice in writing of such nomination to
dividend approved at the AGM will be paid to shareholders whose the Company Secretary at least 21 days
names appear in the Bank’s Register of Members by close of business on before the Annual General Meeting. Such
Friday, June 26, 2020. notice of nominations should be sent via
e-mail to
7. Election and Re-election of Directors [email protected] for
a. Pursuant to Section 249 of the Companies and Allied Matters Act, the attention of the Company Secretary.
the following Directors are being proposed for election as Non- A member of the Statutory Audit
Executive Directors of the Bank: Committee is required to be financially
i. Mr. Seedy Mohammed Njie literate and be knowledgeable in internal
ii. Alh. Mamun Ibrahim Maude control processes. Consequently, a
detailed resume should be submitted
The appointments have been approved by the Central Bank of Nigeria along with each nomination.
and would be presented for Shareholders’ approval at the 8th Annual
General Meeting. 10. e-Dividend Registration
Notice is hereby given to all Shareholders
b. Pursuant to Section 259 of the Companies and Allied Matters Act, to open bank accounts, stockbroking
the following Directors shall retire by rotation: accounts and CSCS accounts for the
purpose of receiving dividend payment
i. Alhaji (Dr.) Muhammadu Indimi electronically. Application form for e-
ii. Nafiu Baba-Ahmad dividend could be downloaded from our
iii. Prof. Tajudeen Adebiyi Regis trars website at
https://africaprudential.com/forms-offers/
Alhaji (Dr.) Muhammadu Indimi being the only Director eligible has to enable shareholders furnish particulars
offered himself for re-election: of their accounts to the Registrar as soon
as possible.
c. Special Notice is hereby given pursuant to Section 256 of the
Companies and Allied Matters Act that Alhaji (Dr.) Umaru Abdul 11. Rights of Securities’ Holders to ask
Mutallab, CON, HRH. Engr. Bello Muhammad Sani,OON, Alhaji (Dr.) questions
Muhammadu Indimi, OFR and Alhaji (Dr.) Aminu Alhassan Dantata, Securities’ Holders have a right to ask
CON are over 70 years of age and have indicated their willingness to questions not only at the Meeting, but
continue in office. also in writing prior to the Meeting, and
such questions must be submitted to the
The Biographical details of the Directors standing for election/re- Bank through email at
election are provided in the Annual Report as well as the Bank’s website [email protected] on or
stated above. before Tuesday, July14, 2020.
8. Closure of Register 12. Unclaimed Share Certificates

As previously notified to Shareholders and the investing public, the The Bank notes that some share
Register of Members and Transfer Books of the Bank will be closed from certificates were returned through the
Monday June 29, 2020 to Friday July 3, 2020 (both days inclusive) for post and marked “Unclaimed”, therefore,
the purpose of dividend payment and updating the Register. any Shareholders with “unclaimed share
certificates” are advised to contact the
9. Nomination to the Audit Committee Bank’s Registrars at the address stated
In accordance with Section 359(5) of the Companies & Allied Matters above, or the Company Secretary at the
Act, any member may nominate a shareholder as a member of the Bank’s Registered address stated below,
PAG E
138
Notice of
or any of the Bank’s branches. Shareholders are also encouraged to update their contact information as such information
change. Change of Address Form can be downloaded from our Registrar’s website stated above. Requests may be
addressed to the Registrars of the Bank or the Company Secretary at the Bank’s registered address stated below.
A copy of this Notice, Biographical details of Directors standing for election, re-election, and other information relating
to the meeting, as well as the full version of the Annual Reports and Financial Statements can be downloaded from the
Bank’s website stated above.
13. e-Report
In order to improve delivery of our Annual Reports, we hereby request that shareholders who wish to receive Annual
Reports and other statutory reports of Jaiz Bank Plc in electronic format should download the e-Report Request Form
from the Bank’s website stated above, complete and return the form to the Bank’s Registrars or Company Secretary for
further processing or simply e-mail the Company Secretary at [email protected].
By Order of the Board
Mrs. Rukayat Oziama Dahiru

FRC/2014/NBA/00000009649
Company Secretary
Jaiz Bank Plc.
Kano House, No. 73 Ralph Shodeinde Street, Central Business District
Abuja, Federal Capital Territory.
10th June, 2020
Notes
PAG E
139
140
Notes
PAG E
141
142
PAG E
1 43 37
Proxy Form
NOTICE IS HEREBY GIVEN that the 8th Annual General Meeting of Jaiz Bank Plc. will
be held at the Bank’s Corporate Head Office, Kano House, 73 Ralph Shodeinde
Street, Central Business District , Abuja, Federal Capital Territory on Thursday July
16, 2020 at 11.00am.
I/WE ……………………………………… executed by a Corporation, the proxy form should be sealed with common
seal. It is a legal requirement that all instruments of proxy must bear
…………………………………………… appropriate stamp duty from the Stamp Duties Office, and not adhesive
Being a member/members of Jaiz Bank Plc. postage stamps. The Bank has made arrangement to stamp the forms at its
hereby appoint :…………………………… cost.
1. The Proxy must produce the Admission card sent with the Notice of
……………………………………………
the Meeting to obtain entrance to the meeting.
as my/our proxy to vote for me/us on my
2. Before posting or emailing the above card tear off this part and retain it.
/our behalf at the Annual General Meeting
of our Company Jaiz Bank Plc. to be held on
Thursday July 16, 2020 at 11.00am and at
any adjournment thereof.Signed this Full Name and Address of Shareholder
day .…… of…………………………2020.
Number of Shares
Shareholder's Signature:…………………
A member (Shareholder) who is unable to Resolution For Against Abstain

attend an Annual General Meeting by Law 1. To receive/adopt the Accounts and the
may vote by proxy. The form has been result thereon
prepared to enable you exercise your vote 2. To Declare a Dividend
since you cannot attend.
Provisions have been made on this form for 3. To Re-Elect Director:
either the Chairman of the Meeting, Alhaji
1. Alhaji (Dr.) Muhammadu Indimi
(Dr.) Umaru Mutallab CON; or Alhaji (Dr.)
To Elect Directors:
Musbahu Bashir; or Mall. Hassan Usman
1. Alhaji Ibrahim Mamun Maude
FCA to act as your proxy. Please sign the
above and choose any of the mentioned 2. Mr. Seedy Muhammed Njie
Proxies to act in your stead. Post or email it 4. To authorize the Directors to fix the
to [email protected] so as remuneration of the Auditors
to reach the address shown overleaf not
5. To elect members of the Audit Committee.
later than 48 Hours before the meeting. If
Please admit………………………………………………………………………………………………to the Annual General Meeting Jaiz

Bank Plc. which will be held the Bank’s Corporate Head Office, Kano House, 73 Ralph Shodeinde Street, Central Business District , Abuja,
Federal Capital Territory on Thursday July 16, 2020 at 11.00am , and at any adjournment thereof
Signature………………………………………………………………………………..
Important
(A) This admission card must be produced by the shareholder or his proxy in order to obtain entrance to the General Meeting.
(B) Shareholders or their proxies are requested to sign the admission card before attending the Meeting.
PLEASE AFFIX A
STAMP HERE
Send by post to:
Africa Prudential Registrars Plc.

Formerly UBA Registrars Limited)
220B Ikorodu Road,
Palmgrove, Lagos, Nigeria.
Or by email to:
[email protected]
JAIZ BANK PLC
KANO HOUSE
73 RALPH SHODEINDE STREET
CENTRAL BUSINESS DISTRICT
ABUJA
www.jaizbankplc.com

Annual Report & Accounts

Uploaded by

Copyright:

Available Formats

Annual Report & Accounts

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Annual Report & Accounts

Uploaded by

Copyright:

Available Formats

Annual Report & Accounts

Stakeholders Information 135

Vision, Mission, Core Values...

About Islamic Banking

It is an alternative financial service offering which is open to all,

Directors, Ofﬁcers & Professional Advisers

Alh. (Dr.) Umar Abdul Mutallab - Chairman

Prof. Tajudeen Adepemi Adebiyi - Independent Director

Nafiu Baba-Ahmad - Independent Director

Alh. (Dr.) Aminu Alhassan Dantata - Non-Executive Director

Alh. (Dr.) Musbahu Mohammed Bashir - Non-Executive Director

Alh. Mukhtar Danladi Hanga Sani - Non-Executive Director

Alh. (Dr.) Umaru Kwairanga - Non-Executive Director

Mall. Falalu Bello - Non-Executive Director

Dr. Ali Chatti - Non-Executive Director

H.R.H. Engr. Bello Muhammad Sani - Non-Executive Director

Alh. (Dr.) Muhammadu Indimi - Non-Executive Director

Mr. Hassan Usman - Managing Director

Mr. Mahe Abubakar Mahmud - Deputy Managing Director

Mr. Abdulfattah O. Amoo - Executive Director

Company Secretary Registered Ofﬁce:

Registrar and Transfer Ofﬁce: Independent Auditor

Africa Prudential Plc. Ahmed Zakari & Co.

Abdulazeez & Co. Oladele Konsulting

Business & Financial Highlights

Statement of Financial Position 31-Dec-2019 31-Dec-2018 Changes

Ratios 31-Dec-2019 31-Dec-2018 Changes

Total Assets Financing & Deposits Share Capital Total Equity

Abuja Branch Gombe Branch Iwo Road Branch

Mararaba Branch PZ-Zaria Branch Yola Branch

The Bank has a long and

The Bank's Proﬁt Before

Managing Director’s Statement

Overview Domestic Economy

Managing Director’s Statement

N200billion allotted. Additionally, Anambra as well as Rivers states.

Managing Director’s Statement

he Bank recognizes that its success is not only measured in terms

Sustainable Business Practices

Principle 1 ( Business Activities) Principle 7 | Capacity Building:

Principle 5 | Financial Inclusion: Principle 9 | Reporting:

Assessment against the Nigeria Sustainable Banking Principles (NSBP):

NSBP Meaning Performance

There is a generic impact assessment checklist to assess the

NSBP Meaning Performance

The bank presently has its 3 existing Financial Inclusion Centers

Principle 3 Human Rights The Bank’s recruitment process/policy provides an

The Bank ensures that lending activities are screened

Our business philosophy is to deliver world class sharia’h

Principle 7 Collaborative The bank is a member of the CBN/NSBP Team.

Management and mitigation measures

Digital Age profits, multilateral organizations, and peers.

Risk Management Report

Risk Management Report

Risk Management Report

Risk Management Report

7 Jaiz Risk Governance

Risk Management Report