annual report accounts - jaiz bank

Annual Report Accounts&

w w w . j a i z b a n k p l c . c o m

Positioned for PROFITABLE GROWTH

RC: 476637

PAGE - 001

Allah says: “O you who believe! When you deal with each other in contracting a debt for a fixed time, then write it down; and let a scribe write it down between you with fairness; and the scribe should not refuse to write as Allah has taught him …” Suratul-Baqrah verse 282

Corporate Head Office No. 73 Ralph Shodeinde Street Central Business District. P.M.B. 31 Garki Abuja, Nigeria For more information: [email protected] +234 708 063 5500 +234 708 063 5555 www.jaizbankplc.com

TWITTER @JaizBankNG FACEBOOK/LINKEDIN/INSTAGRAM @jaizbankplc

Enhance Payment experienceEase Payment with smartphoneFlexible and reliable payment platformInstant Value

SCANTO PAY

*773#Instant Banking Download JaizMobile App

PAGE - 001

Allah says: “O you who believe! When you deal with each other in contracting a debt for a fixed time, then write it down; and let a scribe write it down between you with fairness; and the scribe should not refuse to write as Allah has taught him …” Suratul-Baqrah verse 282

Corporate Head Office No. 73 Ralph Shodeinde Street Central Business District. P.M.B. 31 Garki Abuja, Nigeria For more information: [email protected] +234 708 063 5500 +234 708 063 5555 www.jaizbankplc.com

TWITTER @JaizBankNG FACEBOOK/LINKEDIN/INSTAGRAM @jaizbankplc

Enhance Payment experienceEase Payment with smartphoneFlexible and reliable payment platformInstant Value

SCANTO PAY

*773#Instant Banking Download JaizMobile App

CONTENTS

PAGE - 002 PAGE - 003

5 2 Annual Report Accounts&

3 About Us 4 Vision, Mission.... 5 Directors, Officers & Professional Advisers 6 Location & Offices 8 Business & Financial Highlights 10 Chairman's Statement 14 Chief Executive's Statement

18 Sustainability Report28 Our People and Cultural Diversity 32 Risk Management Report

42 The Board 48 Advisory Committee of Experts 49 Management Team 53 Directors' Report 62 Corporate Governance 73 Statement of Directors Responsibilities 74 Board Evaluation Report 75 Statutory Audit Committee Report 76 Whistleblowing Report 77 Advisory Committee of Experts Report

80 Report of Independent Auditor 85 Statement of Profit and Loss and other Comprehensive I ncome 86 Statement of Financial Position 87 Statement of Changes in Equity 88 Statement of Cash flows 89 Statement of Sources & Uses o f Qard Funds 90 Statement of Sources and U ses of Charity Fund91 Notes to Financial Statements

ABOUT US

aiz Bank PLC – the premier JNon-Interest Bank in Nigeria

commenced operations on

the 6th of January, 2012 on a

f o u n d a t i o n o f t r u s t ,

professionalism and excellence

to deliver innovative financial

solutions and exceptional

customer experience.

The Bank started with a Regional License obtained from the Central Bank of Nigeria to operate in the Northern part of the country and therafter metamorphosed into a National Bank on the 12th of May 2016 with key presence in virtually all the geopolitical zones of the country.

The Bank's core values are built on 7 principles with the acronym RESPECT; Responsibility, Entrepreneurship, Simplicity, Partnership, Excellence, Customer Focus and Trust. These core values drive the Bank towards achieving its vision to be the clear leader in ethical Banking in Sub-Saharan Africa.

Jaiz Bank is publicly quoted on the Nigerian Stock Exchange (NSE) with a balance sheet size of N233 billion (as at December 31st 2020) from N12 billion in 2012. Financing and Investment assets also grew from over N30 billion in 2012 to N166billion (as at December 31st 2020). Other critical parameters such as customer deposits, branch network and profitability have all been growing year – on – year since inception.

01 Overview

02 BusinessReview

03 Governance

05 Financial

Statements

06 Other National

Disclosures

07 Shareholders Information

126 Value Added Statements 127 Five Year Financial Summary

130 Notice of Annual General Meeting 132 Notes 133 e-Dividend Form 135 Proxy Form

CONTENTS

PAGE - 002 PAGE - 003

3 About Us 4 Vision, Mission.... 5 Directors, Officers & Professional Advisers 6 Location & Offices 8 Business & Financial Highlights 10 Chairman's Statement 14 Chief Executive's Statement

18 Sustainability Report28 Our People and Cultural Diversity 32 Risk Management Report

42 The Board 48 Advisory Committee of Experts 49 Management Team 53 Directors' Report 62 Corporate Governance 73 Statement of Directors Responsibilities 74 Board Evaluation Report 75 Statutory Audit Committee Report 76 Whistleblowing Report 77 Advisory Committee of Experts Report

80 Report of Independent Auditor 85 Statement of Profit and Loss and other Comprehensive I ncome 86 Statement of Financial Position 87 Statement of Changes in Equity 88 Statement of Cash flows 89 Statement of Sources & Uses o f Qard Funds 90 Statement of Sources and U ses of Charity Fund91 Notes to Financial Statements

ABOUT US

aiz Bank PLC – the premier JNon-Interest Bank in Nigeria

commenced operations on

the 6th of January, 2012 on a

f o u n d a t i o n o f t r u s t ,

professionalism and excellence

to deliver innovative financial

solutions and exceptional

customer experience.

The Bank started with a Regional License obtained from the Central Bank of Nigeria to operate in the Northern part of the country and therafter metamorphosed into a National Bank on the 12th of May 2016 with key presence in virtually all the geopolitical zones of the country.

The Bank's core values are built on 7 principles with the acronym RESPECT; Responsibility, Entrepreneurship, Simplicity, Partnership, Excellence, Customer Focus and Trust. These core values drive the Bank towards achieving its vision to be the clear leader in ethical Banking in Sub-Saharan Africa.

Jaiz Bank is publicly quoted on the Nigerian Stock Exchange (NSE) with a balance sheet size of N233 billion (as at December 31st 2020) from N12 billion in 2012. Financing and Investment assets also grew from over N30 billion in 2012 to N166billion (as at December 31st 2020). Other critical parameters such as customer deposits, branch network and profitability have all been growing year – on – year since inception.

01 Overview

02 BusinessReview

03 Governance

05 Financial

Statements

06 Other National

Disclosures

07 Shareholders Information

126 Value Added Statements 127 Five Year Financial Summary

130 Notice of Annual General Meeting 132 Notes 133 e-Dividend Form 135 Proxy Form

About Islamic BankingNon-Interest Banking is a growing global phenomenon practiced in nearly 80 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.

The difference is that Islamic Banks do not give or receive interest, nor finance anything that is harmful to the society like alcohol, tobacco, gambling etc. They also avoid gharar- speculation, extreme uncertainty and deception. A significant

portion of Nigerian population is desirous of ethical banking services which Non-Interest Banking is poised to deliver.

In a nutshell, Non-Interest Banking is real-economy oriented where profit and loss sharing arrangement, mark-up, leasing and partnership are mostly the mode of financing .

Our - To be the clear leader in Ethical Banking in Sub-Saharan AfricaVISION

Our - Making life better through Ethical FinanceMISSION

Our 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.

Our CORE VALUES Responsibility Entrepreneurship Simplicity Partnership Excellence Customer Focus Trust

PAGE - 004 PAGE - 005

DIRECTORS, OFFICERS& PROFESSIONAL ADVISERS

Alh. (Dr.) Umar Abdul Mutallab, FCA, CON - Chairman

Alh. (Dr.) Aminu Alhassan Dantata, CON - N on-Executive Director

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

Alh. Mukhtar Danladi Hanga - Non-Executive Director

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

Mall. Falalu Bello, FCIB, OFR - Non-Executive Director

Mr. Mohammed Seedy Njie - Non-Executive Director

Alh. (Dr.) Umaru Kwairanga, - Non-Executive DirectorF.IoD, FCS, FCIP

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

Alh. Mamun Ibrahim Maude - Non-Executive Director

Mrs. Aisha Waziri Umar - Independent Director

Dr. Abdullateef Bello - Independent Director

Mallam Hassan Usman, FCA, FCIB - Managing Director

Alhaji Mahe Mahmud Abubakar - Deputy Managing Director*

Mr. AbdulFattah Olanrewaju Amoo, FCA - Executive Director/Chief Financial Officer

Dr. Sirajo Salisu - Executive Director, Business Development **

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Directors

Mrs. Rukayat O. DahiruFRC/2014/NBA/00000009649

No 73 Ralph Shodeinde Street,

Central Business District, Abuja.

Jaiz Bank Plc.Kano House

Company Secretary Registered Office:

Africa Prudential Plc. (Formerly UBA Registrars Plc.)

220B Ikorodu Road, Lagos.

Ahmed Zakari & Co.22B Oladipo Diya Crescent,

2nd Avenue, Dolphin Estate, Ikoyi, Lagos.

Registrar and Transfer Office: Independent Auditor

Oladele Konsulting(Chartered Tax Practitioner & Management Consultants)

Suite C11 Othini Plaza, Plot 1528, Nouakchott Street

Wuse Zone 1, Abuja.

Abdulazeez & Co.No. 26, Cotonou Street, Wuze Zone 6,

Tax Advisors

About Islamic BankingNon-Interest Banking is a growing global phenomenon practiced in nearly 80 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.

The difference is that Islamic Banks do not give or receive interest, nor finance anything that is harmful to the society like alcohol, tobacco, gambling etc. They also avoid gharar- speculation, extreme uncertainty and deception. A significant

portion of Nigerian population is desirous of ethical banking services which Non-Interest Banking is poised to deliver.

In a nutshell, Non-Interest Banking is real-economy oriented where profit and loss sharing arrangement, mark-up, leasing and partnership are mostly the mode of financing .

Our - To be the clear leader in Ethical Banking in Sub-Saharan AfricaVISION

Our - Making life better through Ethical FinanceMISSION

Our 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.

Our CORE VALUES Responsibility Entrepreneurship Simplicity Partnership Excellence Customer Focus Trust

PAGE - 004 PAGE - 005

DIRECTORS, OFFICERS& PROFESSIONAL ADVISERS

Alh. (Dr.) Umar Abdul Mutallab, FCA, CON - Chairman

Alh. (Dr.) Aminu Alhassan Dantata, CON - N on-Executive Director

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

Alh. Mukhtar Danladi Hanga - Non-Executive Director

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

Mall. Falalu Bello, FCIB, OFR - Non-Executive Director

Mr. Mohammed Seedy Njie - Non-Executive Director

Alh. (Dr.) Umaru Kwairanga, - Non-Executive DirectorF.IoD, FCS, FCIP

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

Alh. Mamun Ibrahim Maude - Non-Executive Director

Mrs. Aisha Waziri Umar - Independent Director

Dr. Abdullateef Bello - Independent Director

Mallam Hassan Usman, FCA, FCIB - Managing Director

Alhaji Mahe Mahmud Abubakar - Deputy Managing Director*

Mr. AbdulFattah Olanrewaju Amoo, FCA - Executive Director/Chief Financial Officer

Dr. Sirajo Salisu - Executive Director, Business Development **

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Directors

Mrs. Rukayat O. DahiruFRC/2014/NBA/00000009649

Jaiz Bank Plc.Kano House

Company Secretary Registered Office:

Africa Prudential Plc. (Formerly UBA Registrars Plc.)

220B Ikorodu Road, Lagos.

Ahmed Zakari & Co.22B Oladipo Diya Crescent,

2nd Avenue, Dolphin Estate, Ikoyi, Lagos.

Registrar and Transfer Office: Independent Auditor

Oladele Konsulting(Chartered Tax Practitioner & Management Consultants)

Suite C11 Othini Plaza, Plot 1528, Nouakchott Street

Wuse Zone 1, Abuja.

Abdulazeez & Co.No. 26, Cotonou Street, Wuze Zone 6,

Tax Advisors

PAGE - 006 PAGE - 007

Kano 1 Branch

No. 55 Tafawa Balewa Way,

Off Murtala Muhammad Way,

Kano, Kano State.

Kaduna 1 B ranch

11A Ali Akilu Road,

Kaduna, Kaduna State.

Kaduna 2 Branch

Farida Ventures Building,

Kano Road, Kaduna,

Kaduna State.

Kano 2 Branch

No. 13E Bello Road

Kano, Kano State.

Kano 3

Kabuga Shopping Complex,

Along BUK/ Gwarzo Road,

Kano 4 Branch

Opposite Trade Fair Complex,

Zoo Road, Kano, Kano State.

Kano 5 Branch

Plot 140, Opposite NNPC Depot,

Maiduguri Road, Hotoro,

Kano, Kano State.

Katsina Branch

No 109B IBB Way, Kofar Kaura,

Katsina, Katsina State.

Kebbi Branch

Plot 20 Ahmadu Bello Way,

Birnin-Kebbi, Kebbi State.

Lokoja B ranch

No. 4 John Holt Road,

Along Paparanda Square,

Lokoja, Kogi State.

Maiduguri Branch

No. 18 Shehu Laminu Way,

Maiduguri, Borno State.

Mararaba Branch

Plot 664 Cadastral Zone A11,

Mararaba Gurku, Karu,

Nasarawa State

Marina Branch

No. 2/4 Davies Street,

Kingsway Building,

Marina, Lagos,

Lagos State.

NASS Branch

National Assembly Complex,

3 Arms Zone

Abuja.

NNPC Branch

Ground Floor,

Block B Room 16,

NNPC Towers, Abuja.

Osogbo Branch

No. 4, Gbongan Road,

Osogbo, Osun State./

Port Harcourt Branch

186 Abba Road,

(Opposite Water Line)

Port Harcourt,

River State.

PZ-Zaria Branch

No. 2 Crescent Road,

Sabon Gari, Zaria,

Kaduna State.

Samaru Branch

Ahmadu Bello University Road,

Opposite Main Gate, Samaru,

Zaria,Kaduna State.

Shaki Branch

Oke-Dio Junction,

Secretariat Road,

Shaki, Oyo State.

Sokoto Branch

No 5 Ahmadu Bello Way,

Former Finbank Building,

Sokoto, Sokoto State.

Unilorin Branch

Main Campus

University of Ilorin,

Ilorin, Kwara State.

Wuse Branch

No 36 Douala Street

Off Herbert Macaulay Way,

Erisco Bompet Plaza, Zone 5 Abuja.

Yola Branch

No 14, Mohammed Mustapha Way

Opposite Jimeta Modern Market

Yola, Adamawa State.

Abuja Branch

Ground Floor, Kano House,

73 Ralph Shodeinde Street

CBD, FCT- Abuja.

No. 17 Wharf Road,

Apapa, Lagos State.

ATBU Branch

Abubakar Tafawa Balewa University,

Bauchi State.

Banex Branch

Bannex Plaza, Wuse,

FCT Abuja.

Bauchi

No. 2 Mohammed Bello Kirfi Road,

Off Ahmadu Bello Way, Bauchi State.

Dugbe Branch

No.3 Fajuyi Road, Dugbe

Ibadan, Oyo State.

Funtua Branch

No. 69, Sokoto Road,

Funtua, Katsina State.

Gombe Branch

No. 8 New Market Road,

Commercial Area

Gombe State.

Gusau Branch

No. 21 Canteen Road,

Opposite CBN Gusau,

Zamfara State.

Gwarimpa Branch

1st Avenue, DBB Plaza,

Gwarimpa, FCT - Abuja.

Ikeja Branch

De Plazaville Shopping Complex,

119 Awolowo Way,

(Allen Round About)

Ikeja, Lagos State.

Ikoyi Branch

39, Awolowo Road,

Ikoyi, Lagos State.

Ilorin Branch

No.11 Unity Road,

(beside Kasmag Transport)

Iwo Road Branch

S7/264, Iwo Road,

Ibadan – Oyo State.

Jos Branch

No 25, Ahmadu Bello Way,

Jos, Plateau State.

Head Office:

Kano House,

73 Ralph Shodeinde Street, Central Business District,

P. M.B 31Garki, Abuja, Nigeria.

Tel: +234 9 460 (JAIZ) 5249, e-mail: [email protected], website: www.jaizbankplc.com

OUR BRANCHES

PAGE - 006 PAGE - 007

Kano 1 Branch

No. 55 Tafawa Balewa Way,

Off Murtala Muhammad Way,

Kano, Kano State.

Kaduna 1 B ranch

11A Ali Akilu Road,

Kaduna, Kaduna State.

Kaduna 2 Branch

Farida Ventures Building,

Kano Road, Kaduna,

Kaduna State.

Kano 2 Branch

No. 13E Bello Road

Kano, Kano State.

Kano 3

Kabuga Shopping Complex,

Along BUK/ Gwarzo Road,

Kano 4 Branch

Opposite Trade Fair Complex,

Zoo Road, Kano, Kano State.

Kano 5 Branch

Plot 140, Opposite NNPC Depot,

Maiduguri Road, Hotoro,

Kano, Kano State.

Katsina Branch

No 109B IBB Way, Kofar Kaura,

Katsina, Katsina State.

Kebbi Branch

Plot 20 Ahmadu Bello Way,

Birnin-Kebbi, Kebbi State.

Lokoja B ranch

No. 4 John Holt Road,

Along Paparanda Square,

Lokoja, Kogi State.

Maiduguri Branch

No. 18 Shehu Laminu Way,

Maiduguri, Borno State.

Mararaba Branch

Plot 664 Cadastral Zone A11,

Mararaba Gurku, Karu,

Nasarawa State

Marina Branch

No. 2/4 Davies Street,

Kingsway Building,

Marina, Lagos,

Lagos State.

NASS Branch

National Assembly Complex,

3 Arms Zone

Abuja.

NNPC Branch

Ground Floor,

Block B Room 16,

NNPC Towers, Abuja.

Osogbo Branch

No. 4, Gbongan Road,

Osogbo, Osun State./

Port Harcourt Branch

186 Abba Road,

(Opposite Water Line)

Port Harcourt,

River State.

PZ-Zaria Branch

No. 2 Crescent Road,

Sabon Gari, Zaria,

Kaduna State.

Samaru Branch

Ahmadu Bello University Road,

Opposite Main Gate, Samaru,

Zaria,Kaduna State.

Shaki Branch

Oke-Dio Junction,

Secretariat Road,

Shaki, Oyo State.

Sokoto Branch

No 5 Ahmadu Bello Way,

Former Finbank Building,

Sokoto, Sokoto State.

Unilorin Branch

Main Campus

University of Ilorin,

Wuse Branch

No 36 Douala Street

Off Herbert Macaulay Way,

Erisco Bompet Plaza, Zone 5 Abuja.

Yola Branch

No 14, Mohammed Mustapha Way

Opposite Jimeta Modern Market

Yola, Adamawa State.

Abuja Branch

Ground Floor, Kano House,

73 Ralph Shodeinde Street

CBD, FCT- Abuja.

No. 17 Wharf Road,

Apapa, Lagos State.

ATBU Branch

Abubakar Tafawa Balewa University,

Bauchi State.

Banex Branch

Bannex Plaza, Wuse,

FCT Abuja.

Bauchi

No. 2 Mohammed Bello Kirfi Road,

Off Ahmadu Bello Way, Bauchi State.

Dugbe Branch

No.3 Fajuyi Road, Dugbe

Ibadan, Oyo State.

Funtua Branch

No. 69, Sokoto Road,

Funtua, Katsina State.

Gombe Branch

No. 8 New Market Road,

Commercial Area

Gombe State.

Gusau Branch

No. 21 Canteen Road,

Opposite CBN Gusau,

Zamfara State.

Gwarimpa Branch

1st Avenue, DBB Plaza,

Gwarimpa, FCT - Abuja.

Ikeja Branch

De Plazaville Shopping Complex,

119 Awolowo Way,

(Allen Round About)

Ikeja, Lagos State.

Ikoyi Branch

39, Awolowo Road,

Ikoyi, Lagos State.

Ilorin Branch

No.11 Unity Road,

(beside Kasmag Transport)

Iwo Road Branch

S7/264, Iwo Road,

Ibadan – Oyo State.

Jos Branch

No 25, Ahmadu Bello Way,

Jos, Plateau State.

Head Office:

Kano House,

73 Ralph Shodeinde Street, Central Business District,

P. M.B 31Garki, Abuja, Nigeria.

Tel: +234 9 460 (JAIZ) 5249, e-mail: [email protected], website: www.jaizbankplc.com

OUR BRANCHES

Statement of Financial Position 31-Dec-2020 31-Dec-2019 Changes N'Million N'Million (%)Total Assets 233,596 167,273 40%Financing & Investment Assets 165,995 107,775 54%Deposits 175,513 127,193 38%Share Capital 14,732 14,732 0%Total Equity 17,845 15,552 15%

Income Statement Gross Earnings 19,614 14,715 33%Profit Before Taxation (PBT) 3,066 2,110 45%Taxation (163) 333 (149%)Profit After Taxation (PAT) 2,903 2,443 19%

Ratios 31-Dec-2020 31-Dec-2019 ChangesCost to Income 76.04% 80.21% 5%Return on Assets 1.31% 1.26% 4%Return on Equity 17.18% 13.57% 27%Capital Adequacy 20.02% 16.44% 22%Liquidity 43.06% 33.60% 28%

Others 31-Dec-2020 31-Dec-2019 Changes Number Number (%) Earning Per Share 9.85 kobo 8.29 kobo 19%Proposed Dividend 3kobo 3kobo 0%Number of Branches/Offices 40 38 5%Number of Staff 609 562 9%Number of Shares in Issue (Million) 29,464 29,464 0%

BUSINESS & FINANCIALHIGHLIGHTS

TOTAL ASSETS

40%DEPOSIT

PROFIT AFTER TAX

2015 2016 2017 2018 2019 2020

Total Assets

Financing & Investment Assets

Deposits

Gross Earnings

Prot Before Taxation (PBT)

PAGE - 008 PAGE - 009

233,596

17,845

PBT (N’Million ) 3,066

Total Assets (N’Million ) 233,596

Total Equity (N’Million ) 17,845

Liquidity (%)

CAR (%) 20.02

Income Statement

Gross Earnings Profit Before Taxation (PBT) Taxation Profit After Taxation (PAT)

Statement of Financial Position

100000

150000

200000

250000

Total Financing &Investment

Assets

Deposits Share Total Assets EquityCapital

Statement of Financial Position 31-Dec-2020 31-Dec-2019 Changes N'Million N'Million (%)Total Assets 233,596 167,273 40%Financing & Investment Assets 165,995 107,775 54%Deposits 175,513 127,193 38%Share Capital 14,732 14,732 0%Total Equity 17,845 15,552 15%

Income Statement Gross Earnings 19,614 14,715 33%Profit Before Taxation (PBT) 3,066 2,110 45%Taxation (163) 333 (149%)Profit After Taxation (PAT) 2,903 2,443 19%

Ratios 31-Dec-2020 31-Dec-2019 ChangesCost to Income 76.04% 80.21% 5%Return on Assets 1.31% 1.26% 4%Return on Equity 17.18% 13.57% 27%Capital Adequacy 20.02% 16.44% 22%Liquidity 43.06% 33.60% 28%

Others 31-Dec-2020 31-Dec-2019 Changes Number Number (%) Earning Per Share 9.85 kobo 8.29 kobo 19%Proposed Dividend 3kobo 3kobo 0%Number of Branches/Offices 40 38 5%Number of Staff 609 562 9%Number of Shares in Issue (Million) 29,464 29,464 0%

BUSINESS & FINANCIALHIGHLIGHTS

TOTAL ASSETS

40%DEPOSIT

PROFIT AFTER TAX

2015 2016 2017 2018 2019 2020

Total Assets

Financing & Investment Assets

Deposits

Gross Earnings

Prot Before Taxation (PBT)

PAGE - 008 PAGE - 009

233,596

17,845

Liquidity (%)

CAR (%) 20.02

Income Statement

Gross Earnings Profit Before Taxation (PBT) Taxation Profit After Taxation (PAT)

100000

150000

200000

250000

Total Financing &Investment

Assets

Deposits Share Total Assets EquityCapital

OverviewAssalamu Alaikum Wa Rahmatullah Wa Barakatuhu!

My Dear Shareholders,It is my greatest pleasure to extend my warmest welcome to you all at this 9th Annual General Meeting of the Bank and it is further an honour and privilege to lead the Board through a year that has been adjudged the most turbulent in recent history. The year 2020 was quite eventful, as we were faced with the COVID-19 pandemic, a nationwide civil unrest, increased tide of insecurity and economic recession, among others. However, we remain grateful to Almighty Allah for the bountiful gift of life and for giving us the ability to keep our heads above waters. As a bank, we have learnt quite a lot over the course of the year and have devised succinct strategies to navigate the future.

Global Islamic Finance LandscapeGlobal Islamic finance industry (which includes Islamic banking, Sukuk, and Takaful) is expected to continue to grow in 2021, having increased 14% year-on-year in 2019 to USD 2.88 trillion, as reported by Moody's Investors Service (Moody's). The global Islamic Finance industry is expected to reach USD 3.69 trillion by 2024 in terms of assets, after its growth slow down to 10.6 percent in 2020, according to S&P Global Ratings. Key factors contributing to the expected growth include robust demand, government support as well as the likelihood of increased mergers within the Gulf Cooperation Council (GCC).

Much of 2020 was spent tackling COVID-19 as governments focused on implementing measures to contain the ravaging pandemic. But key rating agency estimates indicate that the global Islamic finance industry is expected to start picking up from 2021 (S&P puts it at 12 percent) after a significant slow-down in core Islamic finance economies in 2020. Therefore, the anticipated growth in 2021 brings a welcomed relief to industry participants, as Moody's states that there are several opportunities to expand, given that the industry remains under represented in Muslim-majority countries. Such growth factors include:Ÿ Global Sukuk issuance will stabilise this year to around

USD 190-200 billion compared to USD 205 billion in 2020.

Ÿ GCC sovereigns are expected to turn to Sukuk issuance given high financing needs caused by moderate oil prices and wide fiscal deficits.

Ÿ Corporate Sukuk issuance, is anticipated to remain limited as more attractive conventional market opportunities

PAGE - 010 PAGE - 011

CHAIRMAN’S STATEMENT

persist, whilst new financial institutions will boost Sukuk issuance in the sector.

Ÿ The Takaful market is expected to expand steadily in the next two to three years in newly penetrated markets

supported by a moderate rise in premiums, with digitisation and regulatory improvements also supporting growth.

Ÿ Global Islamic funds under management would continue to grow, likely at an annual rate of four per cent to five per cent in 2021-2022, boosted by the growth of Shariah capital markets and resilient demand for Shariah-compliant investments.

ResultsLast year was truly a challenging one for our national economy as well as for most economic agents due to the headwind occasioned by the pandemic. Notwithstanding the challenges, Jaiz Bank was resilient enough to weather the storm and offered positive returns to its Shareholders in 2020.

Your Bank delivered record results of double-digit performance over the prior year (2019). This is an affirmation of our sustainable and organic growth. Financing & Investment Assets grew by 54% from N107.78billion in 2019 to N166.00billion in 2020. Profit Before Tax (PBT) increased to N3.066billion for the year, against N 2.110billion reported in the corresponding period of 2019 representing an impressive growth of 45%. Similarly, Customer Deposits grew to N175.51billion in 2020, from N127.193billion in 2019, while Total Assets hit N233.5billion in 2020, compared to N167.27billion in the corresponding period of 2019 representing a growth of 40%.

The year 2020 was quite eventful, as we were faced with the COVID-19 pandemic , a nationwide civil unrest, increased tide of insecurity, economic recession among others. However, we remain grateful to Almighty Allah for the bountiful gift of life and for giving us the ability to keep our heads above waters.

Alhaji (Dr.) Umaru A. Mutallab, FCA,CON

Chairman, Board of Directors

OverviewAssalamu Alaikum Wa Rahmatullah Wa Barakatuhu!

My Dear Shareholders,It is my greatest pleasure to extend my warmest welcome to you all at this 9th Annual General Meeting of the Bank and it is further an honour and privilege to lead the Board through a year that has been adjudged the most turbulent in recent history. The year 2020 was quite eventful, as we were faced with the COVID-19 pandemic, a nationwide civil unrest, increased tide of insecurity and economic recession, among others. However, we remain grateful to Almighty Allah for the bountiful gift of life and for giving us the ability to keep our heads above waters. As a bank, we have learnt quite a lot over the course of the year and have devised succinct strategies to navigate the future.

Global Islamic Finance LandscapeGlobal Islamic finance industry (which includes Islamic banking, Sukuk, and Takaful) is expected to continue to grow in 2021, having increased 14% year-on-year in 2019 to USD 2.88 trillion, as reported by Moody's Investors Service (Moody's). The global Islamic Finance industry is expected to reach USD 3.69 trillion by 2024 in terms of assets, after its growth slow down to 10.6 percent in 2020, according to S&P Global Ratings. Key factors contributing to the expected growth include robust demand, government support as well as the likelihood of increased mergers within the Gulf Cooperation Council (GCC).

Much of 2020 was spent tackling COVID-19 as governments focused on implementing measures to contain the ravaging pandemic. But key rating agency estimates indicate that the global Islamic finance industry is expected to start picking up from 2021 (S&P puts it at 12 percent) after a significant slow-down in core Islamic finance economies in 2020. Therefore, the anticipated growth in 2021 brings a welcomed relief to industry participants, as Moody's states that there are several opportunities to expand, given that the industry remains under represented in Muslim-majority countries. Such growth factors include:Ÿ Global Sukuk issuance will stabilise this year to around

USD 190-200 billion compared to USD 205 billion in 2020.

Ÿ GCC sovereigns are expected to turn to Sukuk issuance given high financing needs caused by moderate oil prices and wide fiscal deficits.

Ÿ Corporate Sukuk issuance, is anticipated to remain limited as more attractive conventional market opportunities

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CHAIRMAN’S STATEMENT

persist, whilst new financial institutions will boost Sukuk issuance in the sector.

Ÿ The Takaful market is expected to expand steadily in the next two to three years in newly penetrated markets

supported by a moderate rise in premiums, with digitisation and regulatory improvements also supporting growth.

Ÿ Global Islamic funds under management would continue to grow, likely at an annual rate of four per cent to five per cent in 2021-2022, boosted by the growth of Shariah capital markets and resilient demand for Shariah-compliant investments.

ResultsLast year was truly a challenging one for our national economy as well as for most economic agents due to the headwind occasioned by the pandemic. Notwithstanding the challenges, Jaiz Bank was resilient enough to weather the storm and offered positive returns to its Shareholders in 2020.

Your Bank delivered record results of double-digit performance over the prior year (2019). This is an affirmation of our sustainable and organic growth. Financing & Investment Assets grew by 54% from N107.78billion in 2019 to N166.00billion in 2020. Profit Before Tax (PBT) increased to N3.066billion for the year, against N 2.110billion reported in the corresponding period of 2019 representing an impressive growth of 45%. Similarly, Customer Deposits grew to N175.51billion in 2020, from N127.193billion in 2019, while Total Assets hit N233.5billion in 2020, compared to N167.27billion in the corresponding period of 2019 representing a growth of 40%.

The year 2020 was quite eventful, as we were faced with the COVID-19 pandemic , a nationwide civil unrest, increased tide of insecurity, economic recession among others. However, we remain grateful to Almighty Allah for the bountiful gift of life and for giving us the ability to keep our heads above waters.

Alhaji (Dr.) Umaru A. Mutallab, FCA,CON

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Importantly, the Directors' drive for sustainable growth does not focus solely on financial metrics, the Board equally considers critical the monitoring and responding to broader issues of sustainability, including environmental and social impact, so that the Bank is well positioned to succeed in the years ahead.

Fellow Shareholders, from our performance trajectory over the years, you will agree with me that our Bank is gaining more financial buoyancy year-after-year and the Board shall not rest on its oars in pushing the institution to its full potentials.

Board DevelopmentsThere have been some changes to the composition of the Board during the year. We had the pleasure of adding the following Directors, namely: Ÿ Hajia Aisha Waziri Umar, as an Independent DirectorŸ Dr. Abdulateef Bello, as an Independent DirectorŸ Dr. Sirajo Salisu, as an Executive Director

While the following highly resourceful Independent Directors respectively retired from the Board as they completed their tenure:Ÿ Alhaji Nafiu Baba-AhmedŸ Prof. Tajudeen AdebiyiOn behalf of the Shareholders, I appreciate the out-going Directors for their immense contribution to the Bank over the years, while anticipating fresh perspectives from the new members of the Board.

DividendFor the financial year 2020, we have worked assiduously toward ensuring that the Bank makes dividend payment in line with the Shareholders' aspiration. We very much appreciate the understanding of the regulators for approving our proposal to pay 30 Kobo per share as dividend for the year, subject to the approval of the Shareholders.

OutlookEncouragingly, the year 2021 began with lots of positivity and aspirations both internationally and locally as economies reopen and medical science makes advancement in tackling the pandemic. The Bank will accelerate its strides in delighting customers with technologically-driven services, relevant financing and empowerment in impact-making sectors. We remain resolute in making indelible footprints in delivering socially responsible banking services and actualizing our vision, to be the Clear Leader in Ethical Banking in Sub-Saharan Africa.

Thank you and God bless you all.

Alhaji (Dr.) Umaru A. Mutallab, FCA, CON

Chairman

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Importantly, the Directors' drive for sustainable growth does not focus solely on financial metrics, the Board equally considers critical the monitoring and responding to broader issues of sustainability, including environmental and social impact, so that the Bank is well positioned to succeed in the years ahead.

Fellow Shareholders, from our performance trajectory over the years, you will agree with me that our Bank is gaining more financial buoyancy year-after-year and the Board shall not rest on its oars in pushing the institution to its full potentials.

Board DevelopmentsThere have been some changes to the composition of the Board during the year. We had the pleasure of adding the following Directors, namely: Ÿ Hajia Aisha Waziri Umar, as an Independent DirectorŸ Dr. Abdulateef Bello, as an Independent DirectorŸ Dr. Sirajo Salisu, as an Executive Director

While the following highly resourceful Independent Directors respectively retired from the Board as they completed their tenure:Ÿ Alhaji Nafiu Baba-AhmedŸ Prof. Tajudeen AdebiyiOn behalf of the Shareholders, I appreciate the out-going Directors for their immense contribution to the Bank over the years, while anticipating fresh perspectives from the new members of the Board.

DividendFor the financial year 2020, we have worked assiduously toward ensuring that the Bank makes dividend payment in line with the Shareholders' aspiration. We very much appreciate the understanding of the regulators for approving our proposal to pay 30 Kobo per share as dividend for the year, subject to the approval of the Shareholders.

OutlookEncouragingly, the year 2021 began with lots of positivity and aspirations both internationally and locally as economies reopen and medical science makes advancement in tackling the pandemic. The Bank will accelerate its strides in delighting customers with technologically-driven services, relevant financing and empowerment in impact-making sectors. We remain resolute in making indelible footprints in delivering socially responsible banking services and actualizing our vision, to be the Clear Leader in Ethical Banking in Sub-Saharan Africa.

Thank you and God bless you all.

Alhaji (Dr.) Umaru A. Mutallab, FCA, CON

Chairman

All praise be to Allah whose grace made us through another year, Alhamdulillah we have ended the year successfully with satisfactory result. Despite the

turbulent and challenging economic atmosphere, we continued to excel, grow, and sustain a profitable business.

The Board and Management of the Bank have proactively responded to the difficult circumstances occasioned by the Covid-19 pandemic and the associated economic recession which affected the world in general and Nigeria in particular. We sympathize with the families who have suffered or still suffering from loss and incapacitation of loved ones.

While the pandemic has redefined our ways of doing things, it nonetheless, taught us a great deal about our strengths, our values, and our resilience. The challenges posed by it have reaffirmed our commitment to align our business with our customer's requirements as well as to the global economy. Clearly, we need to be focused on three things; the need to preserve our financial strength, maximize our support for the economy and society during these challenging times, and maintaining a strong and profitable business.

Furthermore, we continued to be responsive to our customers and clients, hence the roll-out of robust e-channels to help them cope with the new normal. We are equally working with our partners to deliver programs to help small businesses weather the storm and build enduring institutions.

Performance ReviewI am delighted that we have demonstrated our financial resilience by remaining profitable during a tumultuous year. We have delivered a Profit Before Tax (PBT) of N3.1bn (2020FY) in comparison to the corresponding period of 2019FY (N2.1bn). Our Financing & Investment Assets grew by 54% from N107.8bn in 2019 to N166.0bn in 2020. Customer Deposits grew to N175.5bn in 2020, from N127.19bn in 2019, while Total Assets hit N233.6bn in 2020, compared to N167.3bn in the corresponding period of 2019 representing a growth of 40%. Our Capital Adequacy Ratio (CAR) as of 31 December 2020 was 20.02% which signifies a great improvement while our liquidity ratio (43.06%) was higher than the regulatory threshold.

This sterling performance is reassuring and gives us confidence to pursue our vision to be the clear leader in ethical banking in sub-Saharan Africa. Happily, these successes were noted as your Bank was recognized by Global Islamic

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MANAGING DIRECTOR/CHIEFEXECUTIVE OFFICER’S STATEMENT

Finance Awards (GIFA) as the “Most Improved Islamic Bank” in the world in 2020. I thank most sincerely our hard working and committed staff and supportive Board for these achievements.

Our Transformative ModelOur Bank’s dynamic banking model remains core to our strategy for success, providing us with the diversification that has been critical to our performance.

At the same time, we are accelerating our technological transformation to stay abreast with competition by investing more in technology and ensuring that our payment channels are well positioned to better compete with fintech, online platforms and other banks.

Sustaining a position of resilience, strong and sustained profitability is our principal mandate. In furtherance to this, we

It’s clear that the world is digital, and we are equipped to move with the trend for a digitalized operation and model, with new avenues of growth for our corporate and retail clients.

Hassan Usman, FCA, FCIB

Managing Director/Chief Executive Officer

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All praise be to Allah whose grace made us through another year, Alhamdulillah we have ended the year successfully with satisfactory result. Despite the

turbulent and challenging economic atmosphere, we continued to excel, grow, and sustain a profitable business.

The Board and Management of the Bank have proactively responded to the difficult circumstances occasioned by the Covid-19 pandemic and the associated economic recession which affected the world in general and Nigeria in particular. We sympathize with the families who have suffered or still suffering from loss and incapacitation of loved ones.

While the pandemic has redefined our ways of doing things, it nonetheless, taught us a great deal about our strengths, our values, and our resilience. The challenges posed by it have reaffirmed our commitment to align our business with our customer's requirements as well as to the global economy. Clearly, we need to be focused on three things; the need to preserve our financial strength, maximize our support for the economy and society during these challenging times, and maintaining a strong and profitable business.

Furthermore, we continued to be responsive to our customers and clients, hence the roll-out of robust e-channels to help them cope with the new normal. We are equally working with our partners to deliver programs to help small businesses weather the storm and build enduring institutions.

Performance ReviewI am delighted that we have demonstrated our financial resilience by remaining profitable during a tumultuous year. We have delivered a Profit Before Tax (PBT) of N3.1bn (2020FY) in comparison to the corresponding period of 2019FY (N2.1bn). Our Financing & Investment Assets grew by 54% from N107.8bn in 2019 to N166.0bn in 2020. Customer Deposits grew to N175.5bn in 2020, from N127.19bn in 2019, while Total Assets hit N233.6bn in 2020, compared to N167.3bn in the corresponding period of 2019 representing a growth of 40%. Our Capital Adequacy Ratio (CAR) as of 31 December 2020 was 20.02% which signifies a great improvement while our liquidity ratio (43.06%) was higher than the regulatory threshold.

This sterling performance is reassuring and gives us confidence to pursue our vision to be the clear leader in ethical banking in sub-Saharan Africa. Happily, these successes were noted as your Bank was recognized by Global Islamic

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MANAGING DIRECTOR/CHIEFEXECUTIVE OFFICER’S STATEMENT

Finance Awards (GIFA) as the “Most Improved Islamic Bank” in the world in 2020. I thank most sincerely our hard working and committed staff and supportive Board for these achievements.

Our Transformative ModelOur Bank’s dynamic banking model remains core to our strategy for success, providing us with the diversification that has been critical to our performance.

At the same time, we are accelerating our technological transformation to stay abreast with competition by investing more in technology and ensuring that our payment channels are well positioned to better compete with fintech, online platforms and other banks.

Sustaining a position of resilience, strong and sustained profitability is our principal mandate. In furtherance to this, we

It’s clear that the world is digital, and we are equipped to move with the trend for a digitalized operation and model, with new avenues of growth for our corporate and retail clients.

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are constantly improving our systems and processes to deliver a better, more robust digital bank for consumers and small businesses; improving our cost base and intensifying our engagements with our customers. I am encouraged by the progress we have already made on this front, but there is more to do in 2021and beyond.

Support in challenging timesIn 2020, when it mattered most, the Bank was there for our customers and clients, and with the communities where we operate. We took significant steps to relieve financial pressures faced by our customers through reduction in financing cost and forbearance to those businesses challenged by the pandemic, insecurity, and unstable economic outlook.

In line with our mission in making life better, we encouraged our youths to ideate, experiment and build products/solutions to help address the COVID-19 crisis in the country through an innovation challenge titled “Fightback COVID -19 Innovation Challenge”. The laudable response from the respective tech-startups that participated cut across healthtech, eductech, agritech, social, renewable energy, logistics & fintech spheres. We are working with the winning teams to implement their solutions while ensuring widest social impact.

The need for social distancing canvassed during the pandemic spurred us to offer free Telemedicine services to our customers and staff through MyClinic.NG, where subscribers received medical diagnosis from qualified doctors across the globe from the comfort of their homes.

In furtherance of its corporate social responsibility, the Bank in collaboration with the CANs Foundation (an eco-friendly technology hub) and other philanthropic donors rolled out Project RISE (an acronym which stands for Relief, Intervention and Symptoms Evaluation). Through the Project, we were able to provide relief materials including food items, home essentials, and medical supplies to six hundred and six (606) households (mostly in indigent communities) across Nigeria within a span of three months.

The Bank found the Project impactful and will continue to make similar social footprints in its environs.

Growing our CompanyOur model gives us balance and financial resilience, but we are also ambitious to grow the business organically, and strategically we have priority areas of focus in this regard. First, our Shareholders are committed to maintaining a highly solvent bank to support the growth of our Balance Sheet. To this effect, we are at the verge of completing our private placement which will increase the Shareholders’ Fund, support future risk assets growth, and increase the confidence of customers on the Bank.

Likewise, we are investing in our infrastructure to aid banking, e-banking, and payment channels for a sustainable customer-friendly environment and to deliver that exceptional experience desired by both potential and existing customers who interact steadily with our digital platforms. It’s clear that the world is digital, and we are equipped to move with the trend for a digitalized operation and model, with new avenues of growth for our corporate and retail clients.

In 2021, we will continue our path to becoming our customers’ strategic advisors, broadening our product and value-added service range, and accelerating the digitalization of our business in a robust and controlled environment.

Swapping the traditional banking model with this new digital approach is the new focus of banks, this will deepen client relationship and improve service offerings. The year 2021 will witness a change and maximization of available opportunities while delivering desired growth.

ConclusionIn conclusion, I want to thank my colleagues for their unwavering commitment, teamwork and service to the Bank, and our customers. I am privileged to lead such a devoted and remarkable team while acknowledging the stewardship and support of our Chairman and the entire Board. As we look to 2021, we remain, above all, committed to Jaiz Bank Plc. while continuing to support and deliver set goals for all our stakeholders.

Thank you.

BUSINESS