Jaiz Bank Board Proposes Payment of Dividend

By Dipo Olowookere

Shareholders of Jaiz Bank Plc will receive dividend for the financial year ended December 31, 2019, the Islamic banking firm has confirmed.

The decision to finally reward shareholders of the company after a long wait was reached at the meeting of the board of directors of Jaiz Bank held on Monday, March 16, 2020.

Announcing outcome of the meeting, the non-interest financial institution said the actual amount to be paid would be disclosed when its audited accounts are released to the Nigerian Stock Exchange (NSE).

But the lender emphasised in a notice to the NSE and signed by its Secretary and Legal Adviser, Mrs Rukayat Dahiru, that the payment of the cash reward would only be made upon approval of the Central Bank of Nigeria (CBN).

“Jaiz Bank is pleased to inform its shareholders and other stakeholders that the board of Jaiz Bank at its meeting of March 16, 2020 approved the audited financial statements and proposed the payment of dividend for the year ended December 31, 2019 subject to the approval of the Central Bank of Nigeria (CBN).

“Kindly note that details of the financial statements and proposed dividend will be released to the public upon approval of same by the CBN,” the disclosure by the financial institution said.

Business Post reports that if the dividend is paid, it would be the first for the Nigeria’s first full-fledged non-interest bank since its inception about nine years ago.

Last year, while addressing shareholders at the company’s yearly meeting, Chairman of Jaiz Bank, Mr Umaru Mutallab, said the lender had planned to break this jinx, but he said the board was not given the approval to make this a reality.

He had then promised that in the 2019 fiscal year, efforts would be made to reward its shareholders by meeting regulatory requirements for dividend payment.

“The board had tried to recommend the payment of dividend for the reporting period but the feedback from regulators meant it was not possible until we improve upon some specific performance benchmarks such as our capital buffers and reduction in non-performing risk assets.

“This year, we are working assiduously towards ensuring that the bank meets all those regulatory requirements for dividend payment in order to meet our aspirations of dividend payout to shareholders,” Mr Mutallab had said.