Jaiz Bank Plc lost 14% of its market value as shareholders dumped the Islamic lender’s shares in the stock market. The non-interest bank recently announced a change in the board, citing the Central Bank of Nigeria circular. It appointed Ahmed Alhaji Hassan as its new chief executive officer.
Following the selloffs, Jaiz Bank Plc’s market valuation has dropped below N50 billion, according to data from the local exchange. The bank recently posted a healthy profitability growth in the first half of the year.
Its balance sheet also expanded to about N473 billion in the same period. Apart from 10.4% director shareholdings, six individuals and companies own about 68% of outstanding shares in Jaiz Bank Plc, according to its regulatory filing with a significant record of insider loans at play.
According to its financial scorecard, Jaiz Bank delivered N3.771 billion in the first half of 2023. This was a significant feat when compared with a total of N2.454 billion the non-interest bank posted in the comparable period in 2022.
The surge, according to analysts, was driven by higher gross income from financing and investment transactions. The Islamic bank was also affected by fluctuation in foreign exchange in the period.
Its exchange rate loss spiked to more than N110 million, a sum analysts considered moderate to the size of its balance sheet. Higher staff costs pushed total operating expenses higher in the first half of 2023.
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