By Adedapo Adesanya
Leading non-interest banking institution in Nigeria, Jaiz Bank Plc, recorded N1.8 billion Profit After Tax (PAT) for the year 2019 as revealed in the company’s unaudited Consolidated Financial Statement for the year under review.
The post-tax profit declared by the firm last year was 114 percent better than what was achieved in the 2018 financial year, N834 million.
In the year under consideration, the lender declared a profit before tax of N2.1 billion, higher than the N897.7 million in the previous year, while the sum of N315.2 million was paid as tax to the government, higher than N63.3 million paid in the previous year.
According to the financial results, the bank’s gross income actualised from all its financing transactions rose to N13.5 billion, comprising N7.5 billion from financing contracts and N6.0 billion from the bank’s investment activities.
In the same period of 2018, the company recorded N7.5 billion as gross income from financing transactions, with N6.3 billion raked from financing contracts and N1.2 billion realized from investment activities.
In the consolidated statement for the year under review, Jaiz Bank said it paid the sum of N2.9 billion to investment account holders as return on equity, higher than N1.9 billion paid in the 2018 fiscal year, while it raked N10.6 billion as a Mudarib/Equity investor, better than N5.6 billion it made a year earlier.
It further said its net spread after provision stood at N9.5 billion in FY’19 in contrast to N5.8 billion in FY’18, while the fees and commission brought in N1.0 billion for the company against N988.4 million in the same period of 2018, with other operating income reducing to N188.3 million from N240.3 million, leaving the total income at N10.6 billion in the period under review against N7.1 billion in the same time of 2018.
Jaiz Bank said its staff costs increased in the 2019 financial year to N3.9 billion from N2.8 billion in 2018, while the operating expenses also rose to N3.9 billion from N2.7 billion.
It was a good year for Jaiz Bank as the company’s total assets rose in one year by 54 percent from N108.5 billion in 2018 to N166.8 billion in the period under review. The liabilities of the non-interest bank increased in the 2019 financial year by 71 percent to N96.1 billion from N56.3 billion, while the customer deposits increased to N69.6 billion from N46.0 billion a year earlier.
Finclusion Group Rebrands to Enhance Offerings, Market Footprint
By Adedapo Adesanya
Finclusion Group has announced a brand integration across its markets to Fin, which will facilitate Fin’s planned expansion into new markets in 2022 and 2023.
As it gets a rebrand, subsidiaries in its core markets will also follow suit, including Fin Kenya (formerly: TrustGro); Fin Tanzania (formerly: Fikia Finance) and Fin South Africa (with its products now being SmartAdvance by Fin, NiftyCredit by Fin, NiftyCover by Fin, MediFin and e-Fin).
With this step, the company is consolidating its footprint across Africa under one identity and highlighting its ambition to be the leading international neobank across Eastern and Southern Africa.
The company is also announcing a further equity injection to fuel growth as it is adding $2 million in equity funding to its $20 million round raised earlier in the year. This funding is led by existing investors Mr Leonard Stiegeler, who is also joining the board of the company, as well as Mr Sudeep Ramnani and Mr Jai Mahtani.
The funding will be used to add new, fully-integrated territories to its business and develop new offerings, specifically in support of microfinance banks wanting to offer more financial services with the help of Fin.
In a statement, Fin said its mission is to enhance the quality of life of its customers through simple, convenient, and appropriate financial services. This is why the Fin team across Africa has chosen its new slogan, Simply Smarter Finance.
Speaking on this, Mr Tonderai Mutesva, Co-Founder and co-CEO of Fin, said, “This brand integration is an important step in cementing Fin as the leader in the neobanking space in East & Southern Africa. We have fantastic leadership and a strong team across our markets, and with our joint brand and platform, we will continue to expand.”
Like other neobanks, Fin is already active across the credit, insurance, BNPL and other financial services space and by presenting its services under one name, the company says it will ensure that its quality offering and customer support are instantly recognized.
Also, this brand integration will facilitate Fin’s planned expansion into new markets in 2022 and 2023 and highlight its quality services to microfinance banks in its markets. Fin will soon offer services to these microfinance banks to enhance their value proposition to customers by allowing for higher credit or better saving tools. The technology behind this offering will be known as Fin Connect and is supported by Fin’s earlier acquisition of the microfinance technology services provider, Awamo.
Fin will also continue to support adjacent businesses in the space through its venture portfolio. Fin Ventures is focused on funding entrepreneurs and startups in Africa within the credit and banking space. These ventures are independently run but can benefit from the company’s expertise. One such venture is mTek-Services, a leading digital insurer in Kenya.
Adding his input, Mr Timothy Nuy, co-founder and co-CEO of Fin, noted that “Fin has been created by a team with proven experience in the African fintech space. I am delighted that our platform can extend this expertise and useful financial tools to our partners.”
Cashless Policy: CBN Announces Fresh Cash Withdrawal Limits
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has placed new limitations on cash withdrawals from January 9, 2023, following the launch of the redesigned Naira notes by President Muhammadu Buhari last month.
In a letter seen by Business Post on Tuesday, all Deposit Money Banks (DMBS) and Other Financial Institutions (Payment Service Banks (PSBs), Primary Mortgage Banks (PMBs) and Microfinance Banks (MFBs) must not allow individuals and corporates to withdraw more than N100,000 and N500,000, respectively, while cheques above N50,000 shall not be available.
It noted that in line with the cashless policy of the CBN, all financial institutions must comply with the directives, which include, “The maximum cash withdrawal over-the-counter (OTC) by individuals and corporate organizations per week shall henceforth be N100,000 and N500,000 respectively.
The apex bank noted that individuals and companies intending to go above the fresh cash withdrawal limits should be ready to pay processing fees of 5 per cent and 10 per cent, respectively.
“Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.
“The maximum cash withdrawal per week via Automated Teller Machine (ATM)) shall be N100,000, subject to a maximum of 20,000 cash withdrawals per day. Only denominations of N200 and below shall be loaded into the ATMs.
“The maximum cash withdrawal via point of sale (POS) terminal shall be N20,000 daily.”
In compelling circumstances, not exceeding once a month, where cash withdrawals above the prescribed limits are required for legitimate purposes, the apex bank noted that such must not exceed N5 million and N10 million for individuals and corporate organisations, respectively.
It noted that this should be subject to the referenced processing fees in addition to enhanced due diligence and further information requirements.
The CBN noted that the financial institutions are required to obtain the following information at the minimum and upload the same on a portal created for the purpose, including a valid means of identification of the payee (National ID, International Passport, Driver’s License).
Others include the Bank Verification Number (BVN) of the payee, notarized customer declaration of the purpose for the cash withdrawal, and senior management approval for the withdrawal by the Managing Director of the drawee, where applicable, as well as the approval in writing by the MD/CEO of the bank authorising the withdrawal.
CBN, Stakeholders to Check Rising Wave of Cyber Attacks
By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has assured information security stakeholders and the general public of its commitment to curb the rising cases of cyber attacks within Nigeria’s cyberspace.
This was disclosed by the Director of the Payments System Management Department of the CBN, Mr Musa Jimoh, in his keynote address at the annual Information Security Society of Africa – Nigeria (ISSAN) Cybersecurity Conference in Lagos.
He stated that the apex bank was firmly committed to building a sustainable payments ecosystem in the country.
He also commended ISSAN for organizing the event, stressing that the apex bank will continue to collaborate with organisations that are committed to addressing the rising activities of cyber attacks.
Also speaking, the President of the FinTech Association of Nigeria (FinTechNGR), Mr Ade Bajomo, said to adequately address the rising rate of cyber attacks, organisations should embrace collaboration and information sharing on cyber breaches.
According to him, keeping silence on the part of organizations that had been attacked would not help others, stressing that full disclosure, synergy, and information sharing on reported cyber-attacks and how it was managed would guide other organizations to put preventive and countermeasures in place.
He also called on organizations to constantly upgrade their technology to counter cyber-attacks, urging them to have a data backup.
On his part, the president of ISSAN, Mr David Isiavwe, said the conference was devoted to further exposing the new threats and trends in the cyber security space and also offering practical steps on what businesses and individuals need to know and do to check the rising tide of the activities of cyber-criminals.
He observed that cyber attackers are getting more sophisticated globally, which is an aftermath of the COVID-19 pandemic, stressing that greater awareness must be created to minimize attacks on businesses that may result in losses by various organizations.
Further, Mr Isiavwe, who is also General Manager at Ecobank, made a case for customer awareness as well as a collaboration by all stakeholders.
ISSAN is a not-for-profit organization dedicated to the protection of Nigeria’s cyberspace, specifically and the entire cyberspace in Africa, generally.
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