Jaiz Bank Offers Business Loans and Financial Services

Jaiz Bank is a unique financial institution that offers a range of business loans and financial services. Its primary focus is on providing Shariah-compliant financial solutions to individuals and businesses.

Jaiz Bank's business loans cater to various needs, including working capital, expansion, and equipment financing. The bank's financial services also include Islamic banking products and services.

One of the standout features of Jaiz Bank is its commitment to Islamic banking principles. This approach ensures that all financial transactions are conducted in a transparent and fair manner.

Additional reading: Dubai Islamic Bank Online Banking

Jaiz Bank offers a range of products and services designed to meet the diverse financial needs of its customers. These include Islamic banking services, which are based on the principles of Shariah law.

The bank provides various savings products, such as the Jaiz Savings Account and the Jaiz Fixed Deposit, which allow customers to earn interest in a halal way. These accounts are designed to be easy to open and manage.

Here's an interesting read: Banks and Banking Services

Jaiz Bank also offers a range of current accounts, including the Jaiz Current Account and the Jaiz Business Account, which provide customers with a convenient way to manage their finances. These accounts come with a range of features, including cheque books and debit cards.

The bank's customer service is available 24/7, making it easy for customers to get help whenever they need it.

Jaiz Bank offers a variety of business loan options suitable for both big and small companies.

To qualify for a business loan, your company must be somewhat profitable and have a good credit history, especially for unsecured loans. Secured loans place more importance on collateral offered.

Other general lending requirements include having a registered business or company with the Corporate Affairs Commission (CAC), a business or corporate bank account, and a good Credit Bureau Report with no unpaid obligations or bad debt.

You can apply for a business loan at most Jaiz Bank branches, and the application process involves filling in a form and providing supporting documentation. The bank will evaluate your business's suitability for financing based on the application, supporting documents, and publicly available information.

To apply, be prepared to provide a checklist of important documentation, including a completed application form, company profile, business plan, and bank statements (12 months).

Check this out: List of Banks That Have Merged to Form the State Bank of India

Istisna’ Project Financing is a great way to finance relatively large industrial projects.

Jaiz Bank’s project financing facility allows you to construct and sell a project on deferred payment terms.

The bank's selling price will be at "cost plus profit margin", giving you a fair price for your project.

You have the option of paying in full after the project has been delivered, or paying in installments.

This flexibility in repayment terms makes Istisna’ Project Financing a convenient option for businesses.

For your interest: Access Bank Nigeria Stock Price

To qualify for a business loan, your company must be somewhat profitable. Jaiz Bank requires a good credit history, especially for unsecured loans, while secured loans focus more on the collateral offered.

Your business must have a registered account with the Corporate Affairs Commission (CAC) and a business or corporate bank account. It's also recommended to have been trading for at least 1-3 years.

A good Credit Bureau Report is essential, with no unpaid obligations or bad debt. Being an active customer of the bank is also a plus.

For another approach, see: Key Bank Rating

Here's a list of required documents for a business loan application:

The specific documents requested may vary depending on the credit facility sought.

Repaying a loan can be a bit of a mystery, but Jaiz Bank makes it relatively straightforward. Their credit facilities are both short and long-term, so you can choose the repayment structure that suits your business needs.

Jaiz Bank's flexible repayment structure is a big plus, as it allows you to tailor your payments to your cash flow. This means you can focus on growing your business without worrying about being tied down by inflexible loan terms.

The length of time you have to repay a loan will depend on the type of credit facility you choose. With Jaiz Bank, you can opt for a short-term loan or a long-term loan, giving you the flexibility to manage your finances effectively.

Jaiz Bank offers a variety of non-interest and collateral-based financial products to cater to the needs of its customers.

The bank's non-interest based products include Murabaha financing, which allows customers to purchase goods at a marked-up price, and Istisna'a financing, which enables customers to purchase goods before they are manufactured.

Jaiz Bank also offers collateral-based products, such as Mudarabah financing, which requires customers to provide collateral in the form of assets or cash.

The bank's collateral-based products are designed to provide customers with the necessary funds to purchase assets or expand their businesses.

Jaiz Bank's non-interest and collateral-based products are compliant with Shariah principles, ensuring that they align with the bank's Islamic banking values.

Jaiz Bank has a significant presence in Nigeria's banking sector, with a capital base that has grown from N6 billion in 2012 to N670.98 billion as of Q1 2024.

The bank's pre-tax profit has also increased from N2.11 billion in 2019 to N11.054 billion in 2023, indicating consistent profitability and growth.

Jaiz Bank's capital adequacy ratio (CAR) declined to 17.96% in 2023 from 18.81% in 2022, suggesting a reduction in the bank's buffer to absorb potential losses.

The bank's current paid-up capital is N18.6 billion, which is just N1.4 billion short of the N20 billion required by the CBN for non-interest banks aiming for national status by March 31, 2026.

Jaiz Bank plans to bolster its capital base to N70 billion by the end of 2024 to address this shortfall.

Jaiz Bank's shares have also shown impressive growth, with a 5-day change of +3.55% as of February 28, 2025, and a 1-year change of +16.67%.

Jaiz Bank has shown impressive growth in its financial health and stability, with pre-tax profit increasing from N2.11 billion in 2019 to N11.054 billion in 2023.

The bank's total assets have grown significantly, from just N6 billion in 2012 to N670.98 billion as of Q1 2024.

Jaiz Bank's capital base is currently N18.6 billion, but the bank plans to bolster it to N70 billion by the end of 2024 to meet the Central Bank of Nigeria's (CBN) requirement for non-interest banks aiming for national status.

Here's a breakdown of Jaiz Bank's financial health and risk metrics:

Jaiz Bank's current paid-up capital is N18.6 billion, which is just N1.4 billion short of the N20 billion required by the CBN for non-interest banks aiming for national status.

Equity-Based Finance (Musharaka) is a unique financing option that allows businesses to partner with a bank.

Jaiz Bank offers a Musharaka facility that forms a partnership with your business, where each party contributes equity or capital to establish a new project or expand an existing one.

This type of partnership is based on a shared risk and reward model, where both parties work together to achieve a common goal.

By partnering with Jaiz Bank, businesses can access the necessary capital to grow and expand their operations, while also benefiting from the bank's expertise and resources.

The Musharaka facility is a great option for businesses that want to maintain control and ownership of their operations, as the bank's involvement is limited to providing capital and support.

Let's take a closer look at the sales by activity of Jaiz Bank Plc.

Jaiz Bank Plc's sales by activity show a significant increase in sales over the years.

In 2022, the North Directorate reported a sales figure of 19.71 billion Naira.

The South Directorate also reported a notable increase in sales, with a figure of 7.28 billion Naira in 2022.

The Head Office reported a sales figure of 567 million Naira in 2022, which is relatively lower compared to the other two directorates.

Here's a breakdown of the sales figures for the North and South Directorates over the years:

By 2023, the Head Office reported a significant decline in sales, with a figure of -1.54 billion Naira.

Jaiz Bank has a well-structured management team, led by Haruna Musa as the CEO since November 20, 2023.

The bank's Executive Committee consists of three members: Haruna Musa, Alhassan Abdulkarim, and Mohammed Shehu.

Alhassan Abdulkarim has been serving as a Corporate Officer/Principal since February 28, 2023, while Mohammed Shehu holds the position of Corporate Secretary since an unspecified date.

Jaiz Bank's management team is responsible for making key decisions and overseeing the bank's operations.

Here is a list of the bank's Executive Committee members:

The Executive Committee at Jaiz Bank Plc is responsible for overseeing the overall direction and strategy of the bank.

The committee is led by Haruna Musa, who has been serving as the Chief Executive Officer (CEO) since November 20, 2023.

Alhassan Abdulkarim is another key member of the committee, serving as a Corporate Officer/Principal since February 28, 2023.

Mohammed Shehu is the Corporate Secretary, but unfortunately, we don't have a specific date for when he took on this role.

Musa Potiskum is also a Corporate Officer/Principal, but like Mohammed Shehu, we don't have a specific date for when he started.

Here is a brief overview of the Executive Committee members:

The Board of Directors at Jaiz Bank Plc is composed of highly experienced individuals who bring their expertise to the table. They are responsible for overseeing the bank's strategic direction and ensuring its operations are in line with its goals.

The Chairman of the Board is Alhaji Mohammed Mustapha Bintube, who has been in the role since 2023-07-10. He is responsible for setting the tone and direction for the Board's activities.

The Board has a diverse range of members, each with their own unique skills and experience. For example, Muhammadu Indimi has been a Director/Board Member since the bank's inception, while Seedy Nijie has been in the role since 2020-03-15.

Here are some key members of the Board:

The Board's composition is designed to ensure that the bank has the necessary expertise and experience to make informed decisions and drive its growth.

Jaiz Bank has shown impressive resilience in the market, with a year-to-date gain of 15.98% making it one of the top performers among banking stocks this year.

This gain is quite remarkable, especially considering the bank's low-priced status as a penny stock, which might lead some investors to question its fundamentals.

Jaiz Bank's Chairman of the Board of Directors, Mustapha Bintube, recently made an announcement that might be of interest to investors, during a farewell event in Abuja for 11 retiring board members, including the bank's inaugural chairman, Alhaji Umar Abdul Mutallab.

Jaiz Bank has demonstrated consistent profitability and growth, with pre-tax profit increasing from N2.11 billion in 2019 to N11.054 billion in 2023.

The bank's total assets have grown significantly, from just N6 billion in 2012 to N670.98 billion as of Q1 2024. This growth is a testament to the bank's successful expansion and increasing customer base.

Jaiz Bank has announced plans to bolster its capital base to N70 billion by the end of 2024 to meet the Central Bank of Nigeria's requirement for non-interest banks aiming for national status by March 31, 2026.

The bank's current paid-up capital stands at N18.6 billion, just N1.4 billion short of the required N20 billion. This capital increase could help improve the bank's capital adequacy ratio (CAR) and enhance its financial stability and capacity to manage risks.

Jaiz Bank's CAR declined to 17.96% in 2023 from 18.81% in 2022, indicating a reduction in the bank's buffer to absorb potential losses. This raises concerns about the bank's ability to withstand financial stress.

Jaiz Bank has reported robust growth in gross earnings, primarily fueled by profits from Murabaha transactions. This type of Islamic financing is key to the bank's profitability within its Islamic banking framework.

Murabaha transactions accounted for 67.61% of Jaiz Bank's profit from financing activities and about 41% of its gross earnings in 2023. This highlights the significant role these transactions play in the bank's overall profitability.

Jaiz Bank's investment activities are concentrated in Sukuk, which accounted for about 78% of its investment income in 2023. This concentration risk may expose the bank to potential vulnerabilities related to market volatility, issuer credit risk, and regulatory changes affecting Sukuk markets.

Take a look at this: Commercial Banks vs Investment Banks

Jaiz Bank's reliance on Murabaha transactions is a deliberate choice, as it adheres to Shariah principles that prohibit interest charges. This approach sets the bank apart from conventional banking practices.

Jaiz Bank's profit from Murabaha transactions mirrors interest in conventional banking, but it's essential to note that these transactions are a critical component of the bank's Islamic banking framework.

In the world of finance, valuation analysis is a crucial step in determining a company's worth. Jaiz Bank's impressive earnings per share (EPS) growth is a significant indicator of its financial performance. EPS surged by 267.03% from Q1 2023 to Q1 2024.

Jaiz Bank's EPS growth is quite remarkable, reaching 16.92 kobo in Q1 2024 and bringing the trailing twelve-month EPS to 45.22 kobo. This growth is a testament to the bank's strong financial performance.

A key metric to consider in valuation analysis is the price-to-earnings (P/E) ratio. Jaiz Bank's P/E ratio is 4.33x, which is higher than the banking sector average of 2.23x. This higher valuation could be due to the bank's robust growth prospects, strong financial performance, and strategic positioning in the non-interest banking sector.

However, investors should be cautious of the relatively higher P/E ratio, as it may indicate that the stock is more expensive compared to its peers. This could mean a higher level of risk, especially if the bank fails to meet future earnings expectations.

Jaiz Bank's price-to-book ratio is also worth noting, standing at 1.96x. This indicates that the market values the bank at nearly twice its book value, implying that the stock may be more expensive relative to its actual net assets.

Investors should carefully consider these valuation metrics when deciding whether to invest in Jaiz Bank. While the bank's strong growth prospects and financial performance make it an attractive investment opportunity, the higher P/E ratio and price-to-book ratio may indicate a higher level of risk.