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01
Contents
A. Overview
B. Business Review and Sustainability
C. Governance
D. Financial Statements
E. Other National Disclosures
F. Shareholders’ Information
02
A.
Overview
Who we are 04
Corporate Philosophy 05
Directors, Officers & Professional Advisors 06
Business & Financial Highlights 07
Chairman's Statement 10
Chief Executive's Statement 14
03
Pioneer Non-Interest Bank in Nigeria
We are GIFA Most Improved Bank of the Year -
2020 and 2021
Fitch Rating: BBB
GCR Ratings: BBB-(NG)/A3(NG)
Augusto & Co. Rating: BBB
WE Jaiz Bank Plc, the pioneer Non-
Interest Bank in Nigeria with the
mission of Making Life Better
Through Ethical Finance - has been
providing ethical financial services
to individuals, corporate and
government entities since 2012 .
04
Since its inception a decade ago, the nation’s premier Non- About Islamic Banking
Interest Bank has maintained its leadership role by deepening Non-Interest Banking is a growing global financial system
its alternative model of financing, thus providing the practised more than 80 countries across the world including
foundation for its expansion, and the much-needed ethical the United Kingdom, Canada, the United States of America,
funds for infrastructural development in the country. the United Arab Emirates, Malaysia, China, Singapore, South
Africa, Kenya etc. Global banks like HSBC, Citibank, Barclay’s
Over the years, the Bank has won notable international and Bank, Standard Chartered etc. are also offering non-interest
local accolades, among which are the Most Improved Islamic banking products and services.
Banking awards in 2020 and 2021, respectively, from the
Global Islamic Finance Awards (GIFA). As an alternative financial system, Islamic banks offering is
open to all, irrespective of race or religion. It is based on the
The Bank has also maintained a record of being the first Islamic ethical principles of fairness, transparency and objectivity.
Bank in the world to breakeven within its first three years of Non-Interest Banking offers almost all the services of
operations at a time when there was no Islamic banking and conventional
finance instruments to invest within the country. banks. The difference is that Islamic Banks do not give or
receive interest, and do not finance anything that is harmful to
Jaiz Bank's core values are built on 7 principles with the the society like alcohol, tobacco, gambling etc.
acronym RESPECT: Responsibility, Entrepreneurship,
Simplicity, Partnership, Excellence, Customer Focus and Trust. Islamic finance transactions also avoid speculation, extreme
These core values drive the Bank towards achieving its vision uncertainty and deception. A significant portion of Nigerian
of being the clear leader in ethical Banking in Sub-Saharan population is desirous of ethical banking services which Non-
Africa. Interest Banking delivers.
Jaiz Bank is publicly quoted on the Nigerian Exchange Group In a nutshell, Non-Interest Banking is linked to the real-
(NGX) with a balance sheet size of N279billion (as at economy, asset-backed and it is based on profit and loss
December 31st 2021) compared toN12 billion in 2012. sharing arrangement using different modes of financing.
Financing and Investment assets also grew from over N30
billion in 2012 to N197billion as at December 31st 2021.
Other critical parameters such as customer deposits, branch
network and profitability have all been growing year–on–year
since inception.
Our VISION - To be Our MISSION - Our CORE VALUES
the clear leader in Ethical Making life better through Ÿ Responsibility
Banking in Sub-Saharan Ethical Finance Ÿ Entrepreneurship
Ÿ Simplicity
Africa Ÿ Partnership
Ÿ Excellence
Ÿ Customer Focus
Ÿ Trust
Our BUSINESS PHILOSOPHY
To deliver world class Shari’ ah-compliant financial services to our clientele irrespective of social
status, race or religious belief and to contribute to the socio-economic development of the society.
05
Directors, Officers
and Professional Advisers
Alh. (Dr.) Umar Abdul Mutallab, FCA, CON - Chairman
Alh. (Dr.) Aminu Alhassan Dantata, CON - Non-Executive Director
Alh. (Dr.) Musbahu Muhammad Bashir - Non-Executive Director
H.R.H. Engr. Bello Muhammad Sani, OON - Non-Executive Director
Alh. Mukhtar Danladi Hanga Sani - Non-Executive Director
Malam Falalu Bello, FCIB, OFR - Non-Executive Director
Mr. Mohammed Seedy Njie - Non-Executive Director
Alh. (Dr.) Umaru Kwairanga, F.IoD, FCS, FCIP - Non-Executive Director
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
Malam Hassan Usman, FCA, FCIB - Managing Director
Mr. AbdulFattah Olanrewaju Amoo, FCA - Executive Director Business Development, South
Dr. Sirajo Salisu - Executive Director, Business Development, North
Malam Ahmed Alhaji Hassan, FCA - Executive Director, Services/CFO
COMPANY SECRETARY REGISTERED OFFICE:
Mohammed Shehu Jaiz Bank Plc.
FRC/2017/NBA/00000016416 Kano House, No 73 Ralph Shodeinde Street,
No 73 Ralph Shodeinde Street, Central Business District, Abuja.
Central Business District, Abuja.
INDEPENDENT AUDITOR
REGISTRAR AND TRANSFER OFFICE:
Ahmed Zakari & Co.
Africa Prudential Plc. 22B Oladipo Diya Crescent,
(Formerly UBA Registrars Plc.) 2nd Avenue, Dolphin Estate, Ikoyi, Lagos.
220B Ikorodu Road, Lagos.
TAX ADVISORS
Oladele Konsulting
(Chartered Tax Practitioner & Mgt Consultants)
Suite C11 Othini Plaza, Plot 1528, Nouakchott Street
Wuse Zone 1, Abuja.
06
Financial Performance
The Bank recorded a net profit of N4.40b in 2021compared to N3.07b in 2020, an increase of 43%. The Bank’s operating income
and profitability improved significantly in 2021 due to these reasons:
Ÿ Major strategic focus on new client acquisition
Ÿ Optimal use of balance sheet and a drastic fall in credit losses
Ÿ Strategic focus on geographic coverage, product execution and delivery
The Bank achieved remarkable progress in 2021 despite a difficult business environment occasioned by geopolitical uncertainties
and a general slowdown in global economic growth due to the global pandemic which impacted business activities and plans.
Notwithstanding, the Bank remained proactive in the management of its portfolio while keeping facilities in check.
In 2022, based on its strategy of growing its client base, cross-sell of trade finance, treasury, and capital market products; and its
investments in people, processes, and products , the Bank was able to manage its growth. and achieve its target.
STATEMENT OF FINANCIAL POSITION
The Bank’s balance sheet increased by N45.69billion to reach N279.28billion in 2021 from N233.5billion in 2020. On a gross
basis, the Bank booked new assets of N31.53billion. However, these were offset by repayments and voluntary asset blend.
Proactive management of our balance sheet through asset blend in primary and secondary markets resulted in a healthy return
on assets.
INCOME STATEMENT
The Bank’s gross earnings amounted to N25.84billion, which was N6.23billion higher than last year’s N19.61billion. The
proportion of fee-to-margin income continued to be encouraging. The level of customer-related fee income remained higher
compared with historical standards, which was due to more focus on increased clientele.
SOURCES ANDAPPLICATIONS OF FINANCIAL RESOURCES
The total equity of the Bank grew to N24.31billion compared to N17.85billion in 2020. Based on healthy capitalization ratios, the
Board proposed to the shareholders a dividend of 4kobo per share.
LIQUIDITY
Jaiz Bank Plc historically retained a robust liquidity, and this continued in 2021. Our good liquidity ratio was due to strong loyalty
from core customers because of niche liability products unmatched by other Islamic banks.
CAPITAL ADEQUACY
The Bank abided and complied with the Central Bank of Nigeria (CBN) regulations and directives covering Islamic banking
transactions and practices. The Bank’s capital adequacy ratio was 23.66% at the end of 2021. This level significantly exceeded the
10% threshold stipulated by the CBN.
07
Financial Highlights
Financing & Investment Assets (Nm) Profit Before Tax - PBT (Nm)
200,000 450000
195,000 400000
190,000 350000
185,000 300000
180,000 250000
175,000 200000
170,000 150000
165,000 100000
160,000
155,000 50000
150,000 0
1-Jan-20 1-Jan-21 1-Jan-20 1-Jan-21
2021 19% 2021 43%
2020 2020
Total Assets (Nm) Gross Earnings (Nm)
280,000 30,000
270,000 25,000
260,000 20,000
250,000 15,000
240,000 10,000
230,000
220,000 5,000
210,000 0
1-Jan-20 1-Jan-21 1-Jan-20 1-Jan-21
2021 20% 2021 32%
2020 2020
Deposits (Nm) Total Equity (Nm)
210,000 100%
200,000 90%
190,000 80%
180,000 70%
170,000 60%
160,000 50%
150,000 40%
30%
20%
10%
0%
1-Jan-20 1-Jan-21
1-Jan-20 1-Jan-21
2021 19% 2021 36%
2020 2020
08
Financial Highlights 31-Dec-2021 31-Dec-2020 Changes
N'Million N'Million (%)
Statement of Financial Position 279,275
197,529 233,596 20%
Total Assets 209,089 165,995 19%
Financing & Investment Assets 17,271 175,513 19%
Deposits 24,305 14,732 17%
Share Capital 17,845 36%
Total Equity 31-Dec-2021
N'Million 31-Dec-2020 Changes
Income Statement 25,843
4,373 N'Million (%)
Gross Earnings ( 73) 19,614 32%
Profit Before Taxation (PBT) 4,300 3,066 43%
Taxation (163) 55%
Profit After Taxation (PAT) 31-Dec-2021 2,903 48%
74.55%
Ratios 1.57% 31-Dec-2020 Changes (%)
Cost to Income 17.99%
Return on Assets 23.66% 76.04% (2%)
Return on Equity 29.78% 1.31% 20%
Capital Adequacy 17.18% 4.7%
Liquidity 31-Dec-2021 20.02% 18%
Number 43.06% (31%)
Others 13.8 kobo
4kobo 31-Dec-2020 Changes
Earnings Per Share 43 Number (%)
Proposed Dividend 735
Number of Branches/Offices 34,541 9.85 kobo 40%
Number of Staff 3kobo 33%
Number of Shares in Issue (Million) 40 7.5%
610 21%
29,464 17%
09
“
CHAIRMAN Alhaji (Dr.) Umaru A. Mutallab, FCA,CON
“Our business as a bank has shown incredible resilience during the year under
review. Gross earnings increased by 32% from N19.61billion in 2020 to
N25.84 billion in 2021. Our Profit Before Tax (PBT) also soared higher,
recording a growth of 43% from N3.07 billion in 2020 to N4.37billion in
2021.
10
Chairman’s Statement
Assalam Alaikum Wa Rahmatullahi Wa Barakatuhu National Pension Commission (PENCOM) and increased
Distinguished Shareholders and Invited Guests developmental funding from the Islamic Development Bank
(IsDB) Group, among others.
All gratitude is due to Almighty Allah for sparing our lives to LOCAL OPERATING LANDSCAPE
witness the year 2022 in good health and for all the blessings The local operating landscape did not also unfold in isolation of
He bestowed on us in the year 2021. It is indeed my pleasure the global impact. While the price of crude oil surged which
to be with you this morning and to welcome you all to our increased exports to 40.6% as at September 2021, the impact
10th Annual General Meeting as I present to you the Annual of Covid-19 was consequential on the economic activities.
Report and the Accounts of our Bank for the year ended 31st The real GDP growth hovered a little above 3% with inflation
December 2021. Your Bank achieved yet another year of decreased from 17.32% in the beginning of the year (January
remarkable growth in gross earnings with compound annual 2021) to 15.40% toward the end of the year (November
growth rate of about 27% in the last 5years. 2021). The current account widened to the tune of US$0.31
billion in Q2-2021 and US$1.77 billion in Q3-2021. The
GLOBAL OPERATING LANDSCAPE Federal Government promulgated Finance Act of 2020 which
During the year 2021, the Bank operated within the context supported the budget of 2021 with non-oil revenue
of a local and global economy in which growth was surpassing its target of 18.8%. The Petroleum Industry Act
constrained by the impact of the Covid-19 pandemic. The overhauled the NNPC for more efficient utilization of
year also recorded a spike in commodity prices compared to resources.
the year 2020, an indication of strong rebound from the 2020
global recession. The prices of energy and metals soared in the The Central Bank of Nigeria in its effort to stabilize the
light of recoveries in various economies across the globe. economy adopted the Investors & Exporters Window (I & E)
While this signified the beginning of the end of the pandemic- rate as the official Foreign Exchange rate. The Nigerian Stock
induced downward trend, it also triggered a spate of Exchange was also demutualized which aided transition from a
inflationary waves across the economies of the world. mutual organization to a listed public company (the NG-X
Group). It is expected that this will further strengthen the
The threat of the Covid-19 pandemic did not taper during the capital market with efficiency and productivity.
year because of the emergence and spread of the Delta and
Omicron variants with the latter rearing its head towards the On the flip side, the economy suffered from insecurity with
end of the year 2021. This further slowed economic growth the prevalence of kidnaping, banditry, terrorism and farmers-
globally with travel ban in some countries inhibiting cross- herders conflict. Together, this insecurity challenge caused
border movements. The year ended without the much- high food inflation and disrupted economic activities.
anticipated global recovery due to lack of policy coherence
between nations and absence of vaccine equity between BUSINESS PERFORMANCE
developed and less developed nations. Our business as a bank has shown incredible resilience during
the year under review. Gross Earnings grew by 32% from
Global Islamic finance industry (which includes Islamic N19.61billion in 2020 to N25.84 billion in 2021. Our Profit
banking, Sukuk, and Takaful) continued to grow in 2021, having Before Tax (PBT) also soared higher, recording a growth of
increased in double-digit above 10% year-on-year from 2019 43% from N3.07 billion in 2020 to N4.37billion in 2021.
to 2021. New emerging areas like Fintech and Green Sukuk
received growing attention during the year with Malaysia, Our Total Assets increased from N233.60billion in 2020 to
Indonesia, and Saudi Arabia dominating the market. N279.30 billion in 2021, representing a Y-o-Y increase of 20%.
Shareholders Fund also grew by 36%. The Bank’s Financing and
The global growth did not also place Nigeria in an exclusion Investments also grew by 19% from N166.00billion in 2020 to
perimeter, as the N250 billion Sovereign Sukuk issuance of the N197.50billion by December 2021. Total Deposits on the
Federal Government was oversubscribed by more than other hand, increased to N209.08billion (December 2021)
346%. This further validates the growing acceptance of non- from N175.51billion (December 2020) indicating a 19%
interest financial instruments in Nigeria. Other activities that growth.
spurred the Islamic finance ecosystem within the period
included the issuance of a banking license to the third full- Distinguished Shareholders, during the year 2021, the market
fledged non-interest (Islamic) by the Central Bank of Nigeria perception of our brand has equally continued to improve
(CBN), upgrade of a non-interest banking window of a with the Bank being awarded the most-improved Islamic Bank
conventional bank to a full-fledged subsidiary institution, in the world by the United Kingdom based - GIFA for a second
introduction of Shariah-compliant non-interest fund VI by the year in a row.
11
Chairman’s Statement
CHANGES IN BOARD DIVIDEND
During the reporting year, the following changes to the Board Subject to Shareholders’ approval, a dividend of 4Kobo per
were made subject to your approval. share is being proposed by the Board of Directors for the
financial year 2021.
Ÿ After successful performance as Executive Director
Operations/CFO, AbdulFattah O. Amoo was reappointed OUTLOOK
for a second tenure to serve as Executive Director, South The future looks bright and fulfilling. The macroeconomic
with effect from June 22,2021 indices are projected to have an uptick, as most of the
economies have rebounded except some few. As for us (the
Ÿ Malam Ahmed A. Hassan who had served the Bank Bank), we will remain resolute in providing our customers
meritoriously in different capacities was appointed to the better services in an efficient and delightful manner. Our
Board as Executive Director, Services/CFO. Prior to his digital roadmap will be judiciously executed in order to
appointment, Malam Ahmed was the Chief Compliance simplify our processes and engender employees productivity
Officer, and the appointment is with effect from August while optimising shareholders return.
24,2021
Thank you and God bless you all.
These latest changes to the Board are part of the constant
efforts toward rejuvenating the Board for improved ALHAJI (DR.) UMARUA.MUTALLAB,FCA, CON
performance. Chairman
BOARD EFFECTIVENESS
During the year under review, the Board and its sub-
committees strengthened their oversight functions by
reviewing policies and strategy of the Bank. The Directors also
discharged their statutory duties, in particular, their duty to
promote the long-term success of the Bank. The Board Sub-
committees in particular reviewed in detail all matters within
their respective purview at least once in a quarter, with some
committees meeting more frequently, to determine the
operations of the Bank and understand any challenge early
enough.
12
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Corporate Head Office No. 73 Ralph Shodeinde Street Central Business District. P.M.B. 31 Garki Abuja, Nigeria For more information:
[email protected] +234 700 773 0000 www.jaizbankplc.comTWITTER @JaizBankNG
FACEBOOK/LINKEDIN/INSTAGRAM @jaizbankplc
13
“
MD/CEO Hassan Usman, FCA, FCIB
“By virtue of our mode of banking and as a financial intermediary, we have
supported the real sector of the Nigerian economy in numerous ways from
the inception of our operations to December 2021.
14
Managing Director/CEO’s Statement
MANAGING DIRECTOR’S REPORT Ÿ Provided aggregate funding to the tune of N75.0Billion to
Distinguished shareholders and invited dignitaries, Agriculture.
I am extremely delighted and grateful to Almighty Allah for yet
another wonderful year for our great institution. The year Ÿ Instrumental to the provision of housing to 3,696 families.
2021 is an important milestone for Jaiz Bank, bearing in mind
the fact that our banking license was secured ten years ago Ÿ Facilitated development of over 7,000 shops and
(exactly on the 11th of November 2011). This gives us a great warehouses for small and medium business owners.
sense of pride and humility for achieving a decade of impactful
ethical banking service to our customers and society at large. Ÿ Contributed about N1.61Billion to the fiscal coffers of
We truly have much to be grateful for in these ten years and Federal Governments in the form of taxes.
this tenth year. Over the years, our impact and value addition
to stakeholders has been broad-based. Ÿ Trained more than 2005 Smallholder Farmers and
provided them with total financing of N609Million to
OPERATING RESULT support their livelihood and boost food security in the
Ladies and Gentlemen, I am pleased to report to you yet country.
another year of positive results, despite the tough operating
climate characterized by weak economic growth and the Ÿ Financially included about 6,897 rural women by providing
negative impact of covid-19 pandemic that led to the them with loss-bearing capital of N145Million
recession experienced in the last quarter of the year 2020.
Ÿ Disbursed about N60Billion to over 26,000 MSMEs from
The Bank's Tot al Assets increased by 20% from inception to date
N233.596Billion in 2020 to N279.275Billion in the year under
review. Financing and Investment Assets improved by 19% Ÿ Provided employment directly and indirectly to 2,152
from N165.995Billion to N197.529Billion, this gives credence individuals .
to our strong commitment to supporting our customers and
their businesses. Customer Deposits grew by about 19% from The Bank has also achieved a lot over the years in terms of
N175.513Billion in 2020 to N209.089Billion in 2021 attesting financial stability. Its external credit rating for instance has
to the confidence the market reposed in the Bank. Gross materially improved over the past twelve months. Three
Earnings improved by 32% to N25.843Billion from rating agencies (Fitch Rating, GCR Rating, and Agusto Rating)
N19.614Billion reported in the prior year. Notwithstanding all gave the Bank investment grade rating of BBB/BBB-.
the rising inflation in the economy, the Cost-To-Income ratio
dropped by 2% from 76.04% in 2020 to 74.40% in the Our institution also gained international recognition by
reporting year. The decrease recorded was the result of winning the Most Improved Islamic Bank in the World Award
continuous strategic cost management by the leadership of for 2020 and 2021 consecutively from the Global Islamic
the Bank. Our Profit Before Tax rose by 43% from Finance Awards (GIFA), among other accolades. In a similar
N3.066Billion in 2020 to N4.373Billion in 2021 while Profit stride, an independent analysis by “The Asian Banker”, ranked
After Tax also grew by about 48% from N2.903Billion to N Jaiz Bank 36th on its top 100 Strongest Islamic Banks in the
4.300Billion in the year under review. World, 2021. This placed the Bank above many prominent and
much older Islamic banks in both Asia and the Middle East.
IMPACTANDACHIEVEMENTS
Lest we forget, the raison d'etre for Jaiz Bank as a non-interest NEW PRODUCTSAND DIGITALTRACTION
(Islamic) bank goes beyond the making of profits but rather Distinguished ladies and gentlemen, as part of our continued
covers the inclusive creation of value for the economy and quest of delivering value to our customers, last year we
society. Over the course of this first ten years of our existence, introduced some new products; a Hajj Savings Account to
we have consistently aligned our operations with our vision of make it easier for customers to save towards participating in
making life better. By virtue of our mode of banking and as a the annual pilgrimage and a Warehouse Financing to ease the
financial intermediary, we have supported the real sector of working capital financing needs of our customers.
the Nigerian economy in numerous ways from the inception
of our operations to December 2021. While leveraging on technology, we have deployed some
exciting features on our Mobile Banking Application such as
These include: the contactless NQR payment, in-App Air Ticket purchase,
Ÿ Provided financing to 4,198 Corporates, 5,384 MSME and Electricity Bill Payment. These features were designed to
render more convenient and efficient service to our
clients, and 21,277 individuals. customers.
As technology is becoming more critical to effective service
delivery, the Bank has continued to refresh its technology
15
Managing Director/CEO’s Statement
infrastructure investments. During the outgoing year, we Distinguished Shareholders and invited guests, I would enjoin
successfully deployed Hyper Converged Infrastructure (HCI): you to keenly follow the premier of this unique documentary
being – a server infrastructure that is also cloud-ready. The and the launching of the corporate biography. As we
HCI is a unified hybrid cloud management interface that will celebrate this Tenth Jubilee, it’s a moment to reflect on where
help us manage both our cloud load, and on-the-premise we are coming from – but also to look ahead to where we are
work-load from one point. This is a very significant investment going. As we do so, our focus remains clear: to deliver “A
in today’s technology-led banking. Better Life” by creating long-term, sustainable value for every
stakeholder in our business, for many years to come. We are
The HCI will serve to: so poised to delivering the Jaiz of tomorrow that is well
Ÿ Improve our time to market for new digital banking diversified across all sectors and geographical jurisdictions.
products. Ladies and Gentlemen, on behalf of the Board, I would like to
thank you very sincerely for your unalloyed support, as the
Ÿ Enable seamless Business Continuity and Disaster Board and Management of the Bank continue to focus on
Recovery (DR). delivering uncommon value to all stakeholders. I am confident
to state that the future of the Jaiz brand remains promising for
Ÿ Enhance system high availability and resilience for all of us.
online/real-time banking.
God bless you all.
10TH ANNIVERSARY
To mark the Bank’s tenth anniversary (2012-2021), the Board
of Directors commissioned the production of a video
documentary and a written corporate biography to capture
and preserve not only the Bank’s journey but also that of
Nigerian Islamic banking for the annals of history.
16
Managing Director/CEO’s Statement
“Ÿ Provided financing to 4,198 Corporates, 5,384“
MSME clients, and 21,277 individuals
Ÿ Instrumental to the provision of housing to 3,696
families
Ÿ Facilitated development of over 7,000 shops and
warehouses for small and medium business
owners.
17
NATIONAL HAJJ COMMISSION NIGERIA
NATIONAL HAJJ COMMISSION
OF NIGERIA (NAHCON)
w w w. j a i z b a n k p l c . c o m
1188
B.
Business Review
& Sustainability 14
22
Corporate and Investment Banking Report 25
Retail Banking Report 33
Risk Management Report 57
Sustainability Report
Our People and Cultural Diversity
19
Corporate and Investment Banking Report
Since the global financial crisis in 2008/2009, the banking STRATEGY & INNOVATION
system has been rigorously stress-tested to ensure it can Our vision is to be the clear leader in ethical banking in Sub-
withstand severe market shocks. 2021 was an Saharan Africa. This has provided the springboard for our
extraordinary year by any measure, it was tagged a year of growth into new markets and geographies and has enabled
global pandemic, a global recession, unprecedented our heavy investment in people, process, and technology.
synchronised government actions, and deeply felt social
injustice. It was a year in which citizen faced difficult That investment in 2021did not only move forward with
challenges, as number of people lost loved ones to pandemic. advancement in our improved process framework but also
It was also a year in which those who are less privileged were ensured that more than 90% of our customers serviced via
disproportionately hurt by joblessness and poverty. And it was our products could securely get their needs in a matter of
a time when companies discovered what they really were and, days.
sometimes, what they might become. We focus on a collaborative business, and working to improve
and attain innovation, creativity, and a stronger culture. In post
Our structure as a Bank has given us a robust understanding of pandemic, we plan to undertake a shift in our working
the stakeholders’ needs in application of Non-Interest patterns. The Bank is not immune to competitive threats, and
principles in a consistent and strategic way towards building a this is why our focus on innovation and technology is at the
relationship between us and our customers. This consists of heart of our investments. Clients want to access the full
maintaining a fortress balance sheet, constantly investing, breadth of our franchise from anywhere and at any time, and
nurturing opportunities, fully satisfying customers, and we are transforming to meet that future. This transformation
continually improving risk, governance and controls to serve presents different opportunities across our businesses.
customers and clients while empowering communities
nationally. BUSINESS REVIEW
The Corporate & Investment Business has been providing and
Adhering to these principles allows us to drive organic growth meeting the working capital and trade financing needs of our
and manage our investments, which we have consistently corporate and commercial customers in different sectors of
demonstrated over the past years. These are shown in the the economy, providing various types of financing through
financial highlights and also in the Managing Director’s inventory finance to enable our esteemed customers to stock
statement . up on their various products.
It is interesting to note that in the last five years, our financing
At Jaiz Bank, our reputation is everything and we earned it and investment operations have grown steadily recording a
from our day-to-day interaction with customers and cumulative growth rate of 24% (see chart below). With this
communities. This is not to say that the Bank (and people) do exceptional performance, the Corporate & Investment
not make mistakes; of course we do! Often a reputation is Business achieved a 7.41% increase in revenue as compared to
earned by how we deal with those mistakes. While all the previous financial year.
businesses are different, there are some fundamentals we do
not compromise such as good products, fair and transparent CAGR 2018- 2021 (%)
pricing, responsive service, and continuous innovation.
We constantly set high standards, acknowledge what worked
and what did not and draw lessons from bad processes. Over
the years, our Corporate & Investment Business saw a growth
in its staff strength and knowledge advancement, it also saw
remarkable growth in its assets and Liabilities position. Our
business in 2021 was further diversified and new Units were
created namely Real estate/Oil and Gas and the Inventory
Finance Unit. This was done to further strengthen the
Corporate & Investment Business as well as to increase and
meet its unique customers’ needs.
THE CORPORATEAND STRUCTURED FINANCE
Corporate & Investment Business provides specialized finance
for companies and corporations in different sectors of the
economy with complex financing needs outside the normal
conventional type of banking, such as the acquisition of assets,
provision of working capital, project financing among others.
20
Corporate and Investment Banking Report
The target in 2022 is to provide funding for at least 80% of our expected that the export trade desk will be a full-fledged
investment, fully recover our provisions as well as create a Corporate & Investment Business in the future
quality assets.
Looking deeper, our success and accomplishments are
To increase productivity, and enhance growth, employees founded on the commitment to our shareholders.
were trained on aligning with the goals of the Bank as a whole, Shareholders’ value can be built only if a healthy and vibrant
encouraged team building/teamwork, and improved their company is maintained meaning doing a good job taking care
overall productivity. of all the stakeholders (customers, employees and investors).
Conversely, how do we have a healthy company if all these
PROCESSINGAND PRODUCT OFFERING stakeholders are neglected? As we have learned in 2021 there
Corporate & Investment Business offers a range of products are myriad ways an institution can demonstrate its compassion
and services to its corporate and commercial customers in for its stakeholders and its communities while still upholding
various sectors of the economy such as Agriculture, Real shareholders’ value.
estate, Oil and Gas, manufacturing, information technology,
trading and others. In 2021, we did what we have always done: we supported our
clients and employees during tough times. The strategy we set
CLIENT COVERAGEAND EXTRAORDINARY years ago remains as relevant as ever. We are focused on
COMMITMENT running our business efficiently, managing risk prudently, and
The Corporate and Structured Finance team builds long-term delivering for clients. We are optimizing our business and
relationships based on constant engagement with customers closing any addressable gaps in our offering, and we are
and a holistic understanding of their needs by following them continuing to transform our business for the future. We take
to their doorsteps irrespective of location. forward some vivid lessons; namely, to preserve our ability to
innovate and execute at speed, even as a large and complex
CREATION OFA DIVERSIFIED FUTURE organization. And this is the necessary way to enable our
A diversified workplace means new ideas, talents, skills, and people, communities, and planet to suceed over the long
processes are needed to improve productivity. To create a term. The performance of the Corporate & Investment
diversified future, the Corporate & Investment Business has Business in 2021 is a testament to the extraordinary
been mandated to open windows of opportunities such as an commitment to support our clients unpredictable business
export desk to increase inflows of foreign currency as well as environment.
develop the sector for proper participation by the Bank. It is
21
MSME/Retail Banking Report
Small and Medium Enterprises (SMEs) are critical to the The Bank from inception has disbursed the sum of
development of any economy as they create potentials N42,480,586,252 to over 20,000 beneficiaries. The records
for employment generation, improvement developing from 2018 to 2021 shows a positive growth increase in the
of indigenous entrepreneurship, among others. The key issues amount disbursed and the number of MSMEs impacted
affecting the SMEs in the country can be grouped into four despite the economic challenges faced globally during the
namely: unfriendly business environment, poor funding, low lockdown period in 2020.
managerial skills and lack of access to modern technology (FSS
2020 SME Sector Report, 2007). In 2019, the bank recorded an increase of N3,856,156,570.7
which is a growth of 896.7% in disbursement totalling
According to the CBN Governor Godwin I. Emefiele (at the N4,286,172,000 as compared to N430,015,429.30 that was
8th MSME Finance Conference, 18th August 2014), access to disbursed in 2018. The rapid growth in this aspect of MSME
finance by SMEs has a significant multiplier effect on the financing for the bank gave a big boost to the MSME balance
economy because of its catalytic effect on job creation and sheet considering the fact that the MSME department was
poverty reduction. It is in realization of this fact that the CBN created in the last quarter of 2018.
launched the N220 billion MSME Development Fund to
provide financial resources to the entrepreneurs across the Subsequently, an increase of N8,860,613,285 was realized in
country through Participating Financial Institutions (PFIs). 2020 with a growth of 206.7% in the disbursement of
N13,146,785,285 as compared to N4,286,172,000 in 2019.
The Corona Virus (COVID-19) pandemic had led to The positive growth in 2020 is noteworthy; the early part of
unprecedented disruption of the global economy. These the COVID-19 crisis ushered in Nigeria’s deepest recession
resulting in severe consequences on households’ livelihoods since the 1980s, with services and industry hit especially hard.
and business activities, due to a drop in global demand, This partly stemmed from lockdown measures restricting
declined consumer confidence and slowdown in production. people’s ability to go to work. Despite the harsh economic
In this respect, the Central Bank of Nigeria (CBN) initially impacts of the COVID-19 crisis, Jaiz Bank still found a way to
introduced the N50 billion Targeted Credit Facility (TCF) as a reach more MSMEs and spurred their business growth
stimulus package to support households and micro, small and through the partnerships established with a few wholesale
medium enterprises (MSMEs) affected by the pandemic. lenders that are focused on achieving financial inclusion.
In March 2021, The Central Bank of Nigeria (CBN) Furthermore, in 2021 the disbursement to SMEs was scaled
announced an addition of N50 billion ($120 million) to its up by N11,470,828,071 with a percentage increase of
Targeted Credit Facility. NIRSAL MFB in a publication by 87.25% from N24,617,613,356 compared to
Vanguard news on 13/12/2021 also confirmed that they have N13,146,785,285 that was disbursed in 2020. This is a positive
disbursed TCF loans valued at over N503Billion to over 881 continuation post COVID-19, building on the achievements of
thousand Nigerians and businesses. The infusion of funds by year 2021 while keeping in mind the bank’s mandate to reach
the Nigerian Government into the MSME sector propelled the un-served and under-served.
the resilience of small business owners to triumph despite the
hardship experienced as a result of the pandemic. The analysis below shows that financing MSMEs has a positive
impact on the Bank’s balance sheet allowing us to meet our
The creation of MSME Department in Jaiz Bank was initiated financial inclusion target and also contribute positively to the
by the management’s decision to drive the growth of Micro, economy.
Small and Medium Enterprises in Nigeria through alternative
finance model that is Shariah compliant.
Analysis of MSMEs financing 2018 - 2021
YEAR 2018 2019 2020 2021 TOTAL
AMOUNT DISBURSED N430,015,429.30 N4,286,172,000 N13,146,785,285 N24,617,613,356 N42,480,586,252
BENEFICIARIES 222 2,559 6,906 10,936 20,623
22
MSME/Retail Banking Report
The MSME department has been able to achieve significant The Jaiz Bank‘s Financial Inclusion oversees a number of
growth in collaboration with four specialized units; projects such as JAFIC Rural, JAFIC Virtual, SMEDAN
Ÿ Financial Inclusion Conditional Grant Scheme (CGS), Green Account Project
(Waste to Wealth/Dumpsites empowerment programmes)
Ÿ Agency Banking and a few others. The Bank has Four (4) Financial Inclusion
centers in Katsina State (Zango, Baure, Mai Adua, and Daura
Ÿ Specialized Partnership Centers) under the JAFIC rural project; and has Four JAFIC
Virtual Teams spread across our branches in four states
Ÿ SMEs Aggregators & Clusters namely: Kano State (Bello Road Branch), Oyo State (Dugbe
Branch), Borno State (Maiduguri Branch) and Kebbi State
Financial Inclusion: The Jaiz Bank Financial Inclusion plays a (Birnin-Kebbi Branch).
critical role in job creation and economic development. It is
aimed at strengthening finance, capacity building and non- The JAFIC rural project is exclusive to women only and further
profit consumer–driven organizations that empower the emphasizes the Bank’s commitments to supporting women
financially excluded people. The overall objective is to enable entrepreneurs. The MSME Department is currently working
Jaiz Bank expand its reach to the unbanked, diversify its lending on more women-focused projects that are Shariah compliant
activities to Micro Businesses at the Bottom of the and beneficial to both women entrepreneurs and the Bank
Pyramid/Rural Communities using the Mudaraba itself.
(Partnership) Financing Model (Profit/Loss Sharing).
JAFIC CENTERS MAI’ADUA BAURE ZANGO DAURA TOTAL
Accounts Opened 3,856 3,919 1,432 1,932 11,139
BVN Enrolment 2,288 2,393 1,532 2,928
Financing (N’m) 33.9 31.4 14.7 17.9 9,141
No. of Mudaribs 1,828 1,939 924 1,166 97.8
5,857
Summary of Financing In Jafic Virtual Kano as At 31st December, 2021.
Five (5) Clusters/Associations under the JAFIC virtual initiative with supporting disbursement figures as shown in
the table below
S/N CLUSTERS/ASSOCIATION FINANCING (N’m) NO OF BENEFICIARIES
1 Kano Leather Clusters Association 20.0 296
2 Kano Garment Makers Association 20.0 213
3 INZA Entrepreneurs Multi-Purpose Cooperative 10.0 132
4 Kano Tailors Association 4.6 48
5 Sharada Traders Association 1.1 11
55.7 700
Total Disbursement
SMEDAN CGS Programe: As part of the Financial Inclusion disbursed so far for 4,171 beneficiaries and, the Bank has
targets, eight (8) states; Yobe, Kaduna, Delta for 2020 and no doubt positively impacted and touched millions of
Borno, Adamawa, Plateau, Jigawa and Kebbi for 2021 are households and livelihoods which is in line with its Financial
beneficiaries under the SMEDAN Conditional Grant Scheme Inclusion target and strategy and affirming its commitments
and disbursement is ongoing. With a total of N208.6 to its Mission of – “ Making Life BETTER through Ethical
Finance”.
23
MSME/Retail Banking Report
Agency Banking: Agency Banking is a tool used in emerging This unit has established relationships with the following
economies to expand demand for banking services, government agencies & organizations;
decongest Bank’s branches; and reduce the cost to serve and
achieve financial inclusion. Jaiz OyaOya is the brand name for Ÿ Bank of Industry (BOI): N 3billion
our Agency Banking Service. From the expression above and
in view of our target market (Unbanked & Underbanked), Ÿ SMEDAN CGS: N134.48billion (2020) & N198.4billion
OyaOya is a typical Pidgin that cut across Nigeria and it simply (2021)
means let’s go or it’s time to begin. The creative expression on
the Oya Oya logo shows a location pin that represents places, Ÿ SMEDAN Matching Fund: N500million
which simply means wherever you are a Jaiz Agent is closer to
you. Ÿ DBN : N5.4billion
The Agency Banking has been able to enroll over 2,000 Ÿ NADDC : N3billion Matching Funds
Agents Nationwide as at 31st December, 2021 in the North
East, North West, North Central, South-South & South- Additionally, a number of Fintechs have been on-boarded to
West respectively. ease the activities of the MSME department in terms of
financing;
Our presence on the Shared Agents Network Forum
(SANEF) gave the Bank a Nationwide reach where all the 28 Ÿ Simplified Credit (tool for pre-qualifying MSMEs for
CBN License Super Agents can open Tier 1 accounts on financing)
behalf of the Bank and carry out basic financial services at
Agents’ locations. Ÿ Flexi Saf on Schools Solutions
Also our partnership with NIBSS Agency Banking Platform Ÿ SANEF Technology Platform (with about 28 Super
has also given our Agents ability to carry offline BVN Agents on boarded)
enrollment; this has led to successful enrollments of over
100,000 BVN’s at various Agents locations that have been SMEs Aggregators & Clusters: This is specially designed to
profiled under the Bank. oversee the financing of Micro, Small and Medium Enterprises
(MSME). Through this outfit, the Bank focuses on
All of the above were achieved in line with the Bank’s drive in implementing innovative ideas in marketing of quality MSME
promoting Financial Inclusion and keying into the CBN FSS assets and liabilities via branches, coordinating/monitoring
2020 strategy on Financial Inclusion. disbursements of MSME Funds via branches/RMD, linking
strategic BDSPs/EDCs/EDIs with our branches for quality
Specialized Partnership: This Unit oversees the MSMEs business referrals and opportunities, organizing
establishment of partnerships with government agencies and MSMEs Interactive Sessions/Business Clinics (Spark-up your
other relevant organizations for intervention funds under the Business), organizing training of MSMEs to enhance
MSME NIFI Funds. These are funds set up in fulfillment of the performance and update on developments on Financial
mandate of achieving financial inclusion through provision of Literacy, AML/CFT, Book keeping & Accounts etc., branch
finance to entrepreneurs who are either un-served or under- support on MSME Financing and processing repayment of
served with regards to access to finance and other Funds.
developmental support services.
It is important to note that, the Bank has successfully
supervised and coordinated the MSME funds disbursement
which includes the Bank of Industry (BOI) N3Billlion
Intervention Funds and other MSME Financing carried out
during the period under review using the Bank’s Funds. The
Bank is already strategically positioning itself to ensure a
successful coordination of the following funds in year 2022:
SMEDAN N500Million Matching Funds, DBN N5.4Billion,
Renewed BOI N3Billion and NADDC Matching Funds
N3Billion.
24
Risk Management Report
THE RISK MANAGEMENT ENVIRONMENT AND with the introduction of modified schemes channelling single-
PERCEPTION digit finance and risk-sharing mechanisms to major producers
The business environment in 2021 saw an improvement over and processing entities. It is expected that if the upward
2020 because of the growth rate in the GDP recorded at trajectories are sustained, banks will be more confident in
0.51% in Q1 of 2021, slightly higher than the 0.11% rise in the financing agricultural activities, leading to a lowering of the risk
prior period, 5.01% in Q2, 4.03% in Q3, and 3.98% in Q4, with perception of the sector.
an overall annual growth rate of 3.4%. The Covid-19
pandemic was present throughout the year but was managed Jaiz Bank is well positioned to address the challenges arising
by the government without resulting to a lockdown or from the external environment, and it has been tweaking its
restriction of movement, which encouraged more activities. strategy to exploit the opportunities while revamping its
monitoring and recovery mechanisms so that the prevailing
However, in terms of the currency exchange rate, the Naira / and emerging risks affecting the Bank’s business will be at a
US$ official exchange rate closed the year at N435 / $1 with level within its capacity to manage. The primary indicators of
the Naira being devalued by 14.78% at the official window in the Bank’s response mechanisms will be partly through an
2021, recording a significant fall from the N379.00 / $1 rate, as increase in the Investment-Deposit Ratio (IDR), the
quoted on the CBN website at the beginning of the year. investment in IT systems, and the reduction in the ratio of
provisioning as a percentage of total investments, including the
The digital revolution in banking continued apace in 2021, rate of foreclosure on collaterals.
culminating in the Central Bank of Nigeria introducing a digital
currency, the e-Naira, which is intended to drive down Considering the nation’s GDP growth trend and the Bank’s
transaction costs, improve financial inclusion, and encourage strategy, our projected perception of risks in 2022 is
access to the formal banking sector. However, the increase in manageable while our outlook is increasingly optimistic. The
processing speed, virtual all-time availability, and the recent conclusion of the auction of 5G licenses and the
multiplicity of channels have exposed the increasing risk of expected improvement in the availability of power, including
cybercrime and e-banking fraudulent activities. According to from renewable sources, suggests that the cost of running
the Nigeria Inter-Bank Settlement System (NIBBS), it is operations as a percentage of revenue will be lowered,
estimated that fraud-related transactions reportedly cost coupled with the resilience of other sectors such as
Nigerian banks about N14 billion in losses annually. Both the telecommunications and financial services. Jaiz Bank will fully
regulator and the government are tightening controls around exploit the opportunities in its environment using its unique
the anonymity of online activities by linking unique identifiers business model, while mitigating the risks of the headwinds
like the Bank Verification Number and the National Identity that may continue to manifest in the future.
Number (NIN) to operating bank accounts and online
financial activity. However, not only must operating processes ENTERPRISE RISK MANAGEMENT
and procedures be tweaked but significant continuing Jaiz Bank clocked 10 years at the end of 2021 and has
investment in real-time monitoring of threats and securing pioneered a unique Enterprise Risk Management (ERM)
financial data against manipulation are required to force a culture and practice suited to its position as the first Non-
downward trend in cyber risks. Interest Banking Institution in Nigeria. As the Bank continues
to mature in this respect, it has successfully upheld the pre-
Other major economic events that have a bearing on the ease eminence of avoiding Shari’ah non-compliance risk, in addition
of doing business, hence leading to an optimistic performance to upholding leading practice in pre-empting and addressing all
outlook for businesses, include the successful issuance of the risks that confront the enterprise, leading to the elimination of
N250 Billion Sovereign Sukuk offer in December 2021 by the non-compliant practices and income in all its operations.
Debt Management Office (DMO) , which was oversubscribed
by 346%. The proceeds were for infrastructure (roads) The risk management framework of the Bank incorporates a
development across the country, which suggests an holistic view of the enterprise in all its activities and recognises
improvement in the quality of the network, which leading to a the importance of knowledge and process by investing
lower cost of logistics. The rail network was further expanded resources in the training of its human capital, as well as the
with the commissioning of the Lagos – Ibadan line, and the retention of leading authorities to review and recommend the
beginning of the construction of the Kaduna – Kano double best approaches to risk and its management that is suited to its
track line, signalling an improvement in transportation in and business model. This entails the implementation of risk
out of key economic centres. management processes to determine the potential for
divergence from expected outcomes, while formulating the
Agricultural production of the major staples of rice and maize right responses to ensure the full exploitation of
is expected to increase at a faster rate in 2022 due to the opportunities and strategic objectives.
continuing intervention of the CBN in large-scale production
25
Risk Management Report
The Enterprise Risk Management framework of the Bank is Non-Interest-Financial-Institution (NIFI). The Board of
guided by the Central Bank of Nigeria (CBN), the Nigeria Directors is fully responsible for risk management, and it has
Deposit Insurance Corporation (NDIC), its Advisory approved the enterprise risk management framework to
Committee of Experts (ACE), the Islamic Financial Services permit it to fully discharge its role.
Board (IFSB), the Accounting and Auditing Organization of
Islamic Financial Institutions (AAOIFI) as well as Non-Interest The Bank is first and foremost conscious of complying fully
Financial Institution (NIFI) compliant leading practice. with Shari’ah standards to eliminate non-compliant income
from its business. It is guided in this by the Advisory
The major risks facing Jaiz Bank are: Shari’a Non-Compliance Committee of Experts. All products, markets, businesses, and
risk, Investment (Credit) risk, Operational risk, Market & practices with internal and external stakeholders are assessed
Liquidity risks, Compliance risk, Legal risk, Information objectively on this criterium first before all others. The Bank’s
Security & Cyber risk, Displaced Commercial risk, risk culture is summarized in the statements listed below -
Reputational risk, Political risk, and Strategic risk. a. Minimization of potential risks that can jeopardize its
The ERM framework and policies of Jaiz Bank are structured fiduciary responsibility as a Non-Interest Financial
to address the above highlighted risks using ‘Three Lines of Institution (NIFI) operating under Islamic financial
Defence’ model which includes the definition of risk principles while expanding the Bank’s market share.
ownership between the applicable layers in the Bank’s b. The responsibility for risk management in the Bank is
organogram. The Bank ensures the relevance of the fully vested in the Board of Directors, which in turn
framework and policies to the risk environment by delegates such to its sub-committees and executive
undertaking comprehensive revisions when indicated and/or management.
required. c. The Bank pays attention to both quantifiable and
unquantifiable risks with focus on Shari’ah Non-
Risk Management Philosophy Compliance risks.
a. The Bank implements a sound, ethical and Shari’ah- d. The Bank’s management promotes awareness of risk
and risk management across the Bank.
based risk management system, complying with e. The Bank avoids products, markets, and businesses
regulatory requirements to build the foundation of a where it cannot objectively assess and manage the
resilient financial institution focused on ethical banking. associated risks in line with both the Shari’ah and
b. The Bank has adopted a holistic and integrated approach environment perspectives.
to risk management as is required by the nature of
Sharia’h-based financial contracts viz–a-viz its JAIZ BANK’S RISKAPPETITE
operations and thereby bringing all risks together The Bank’s risk tolerance level is set by the Board of Directors
under one or a limited number of oversight functions. to minimize erosion of earnings or capital and avoid losses -
c. Risk officers are empowered to perform their duties including income loss from non-compliance with Shari’ah
professionally, ethically, and independently, free of standards in its overall asset and liability portfolio in the
interference. banking and trading books, or from fraud or operational
d. Risk management is governed by well-defined policies inefficiencies.
that are clearly communicated across the Bank.
e. Risk management is a shared responsibility; therefore, The broad objective of the Bank’s risk appetite is to be among
the Bank aims to build a shared perspective on risks the industry leaders with respect to performing investments
that is grounded in consensus. and the reduction of the cost of risk, while maintaining a zero
f. The Bank’s risk management governance structure is tolerance for income loss from Shari’ah violations. The Bank
clearly defined. strives to maintain a ratio that ensures that there are adequate
g. There is a clear segregation of duties between risk- provisions for all non-performing assets based on their levels
taking business units and risk-managing functions. of classification. Shari’ah screening is enshrined to make
h. Risk related issues are taken into consideration in all transactions Shari’ah-compliant before disbursement. To
business decisions. The Bank shall continue to strive to avoid losses from financed contracts, strict monitoring and
maintain a conservative balance between risk and investment supervision mechanisms are followed in the post-
revenue considerations and in consonance with the of disbursement phase, up to collections and / or recovery.
Islamic jurisprudence.
i. Risks are reported openly and fully to the appropriate The risk appetite is expressed qualitatively and quantitatively
levels once they are identified with the trigger points and thresholds defined to assist
monitoring and objective reporting. In accordance with the
RISK CULTURE Bank’s risk appetite, we maintain a conservative risk profile.
The overall risk culture in the Bank is based on the elimination The risk profile is managed based on an integrated risk
of potential risks that can affect its fiduciary responsibility as a management framework. In this framework, all types of risks
are identified to provide one integrated view on the risk
26 profile for the Bank as a whole.
Risk Management Report
JAIZ BANK’S RISK GOVERNANCE STRUCTURE with the risks and uncertainties associated with the business to
protect the Bank from losses, thereby enhancing its
Board of Directors competitive advantage.
The Board of Directors is ultimately responsible for overall
risk management of the Bank and for establishing and The Risk Management Department of the Bank is broadly
monitoring the effectiveness of its Risk Management and arranged into the following units –
Corporate Governance frameworks. i. Investment (Credit) Risk Unit
ii. Investment Monitoring Unit
(Shari’ah)Advisory Committee of Experts (ACE) iii. Market and Liquidity Risk Unit
This independent committee of scholars sits quarterly, and it iv. Operational Risk Unit
endorses risk management processes and reviews accounts, v. Documentation and Other Unique Risks Unit
validates products and services in line with Shari’ah principles,
and their decision is final, subject to the final authority of the Credit Risk
Financial and Regulatory Advisory Committee of Experts Credit Risk is the risk of economic loss from default or
(FRACE) of the CBN. changes in ratings or other credit events. In a typical NIFI, it is
defined as ‘the potential that a counterparty fails to meet its
Board Risk Committee (BRC) obligations in accordance with agreed terms under a financial
The Board Risk Committee (BRC) is responsible for all contract’. It arises principally from –
material risks, including the control and oversight of credit risk. i. Financing in Bai’ (sale) e.g., Murabaha, promising to buy,
The purpose of the Committee is to assist the Board of
Directors (BOD) in formulating strategies for enterprise- or deliver in Istisna’ and Salam.
wide risk management, evaluating overall risks faced by the ii. Leasing (Ijarah) for rentals and lease-to-own ( Ijarah wa
Bank, aligning risk policies with business strategies, and
determining the level of risk which will be in the best interest Iqtina’).
of the bank. iii. Investing in business performance on profit & loss
Board Investment Committee (BIC) sharing (PLS) in the Musharakah and Mudarabah
The Board Investment Committee (BIC) is responsible for the contracts.
creation of investment (credit) and managing investment risks. iv. Credit risk can also arise because of the crystallization
It is established as a standing committee with the primary role of any off-balance sheet transaction such as Kafalah
to effectively review and approve credit risks to be faced by (surety) and Wakalah (agency) contracts.
the Bank, and report to the BOD at regular intervals while
effectively implementing the BOD’s strategy for credit risk Peculiarities of credit risk in a Non-Interest Financial
management. Institution.
The role of the Bank can be that of a financier, a supplier, a
In addition to the above Committees, the following Board Mudarib (fund manager to Investment Account Holders), and
Committees are also directly or indirectly responsible for a Musharakah (profit and loss) partner. The Bank principally
reviewing and guiding risk management functions. concerns itself with the risk of counterparties’ failure to meet
their obligations in terms of receiving a deferred payment and
i. Statutory Board Audit Committee (BAC) making or taking delivery of an asset. A failure could relate to
II. Board Governance/Remunerations Committee a delay or default in payment, or in delivery of the goods/assets
of Salam (the purchase of a commodity for deferred delivery
The following executive and senior management committees in exchange for immediate payment), or Parallel Istisna
are also directly or indirectly responsible for examining and (where those that commission the asset make milestone
recommending risk management functions: payments to the financier as the asset is constructed by
another contractor or developer), entailing a potential loss of
i. Executive Committee (EXCO) income and even capital.
ii. Asset & Liability Committee (ALCO)
iii. Management Investment Committee (MIC) i. Due to the unique characteristics of each financing
iv. Criticized Assets Committee (CAC) instrument, such as the non-binding nature of some
v. IT Steering Committee contracts, the commencement stage involving credit
risk varies. Therefore, credit risk is assessed
Risk Management Department separately for each financing instrument to facilitate
The Chief Risk Officer (CRO) leads the Risk Management appropriate internal controls and risk management
Department (RMD) and reports directly to the Board Risk systems.
Committee, with a dotted line to the MD/CEO. The CRO is
responsible for the establishment and maintenance of a ii. The Bank also considers other types of risks that give
framework geared towards the enhancing the capacity to rise to credit risk. For example, during the contract’s
provide greater value to stakeholders while effectively dealing life, the risk inherent in a Murabaha contract is
transformed from market risk to credit risk; the
27
Risk Management Report
invested capital in a Mudarabah or Musharakah market risks are managed based on predetermined asset
contract will be transformed to debt in case of proven allocation across various asset categories and continuous
negligence or misconduct of the Mudarib or the appraisal of market conditions for movement and expectation
Musharakah’s managing partner. of foreign currency rates, benchmark profit rates, and equity
iii. Adequate collateral with a minimum coverage exposures. To manage all other risks, the Bank has developed a
requirement is taken in line with the peculiarities of detailed risk management framework to identify and apply
each transaction, as well as adequate covenants and resources to mitigate the risks.
protections embedded in the applicable and
transaction-specific agreements. The Bank has carefully selected and accredited some
iv. In the case of default in certain instances, the Bank professional valuers that assist in determining the values of the
does not impose a penalty except in the case of collateral to be accepted. It takes into consideration the Open
deliberate procrastination, thus increasing the Market Value (OMV), Forced Sales Value (FSV) and the Rental
probability of default. As a matter of fact, the Bank is Value (RV) on tangible collaterals. A minimum collateral
prohibited from using the amount of any penalty for coverage ratio rule is in place for the locations that the Bank
its own benefit or taking it as income but must donate conducts its business. The collateral register is automated to
any such amount to charity. This decreases the cost of allow the easy update and retrieval of collateral information.
default and discourages bad behaviour.
v. The Bank’s credit risk and monitoring units manage the In general, collateral types considered are -
credit process from origination to collection and i. Cash-backed transactions
recovery; monitoring and controlling all such risks by ii. Guarantees from other Financial Institutions.
adhering to sound policies and processes that have iii. Legal Mortgage over properties and Mortgage
been laid down to guard against risk manifestation in
compliance with the Shari’ah contracts’ specific risk Debentures
per best practice. iv. Equitable Mortgage
v. Inventory warehousing/Stock Hypothecation
An integrated risk rating methodology has been developed to vi. Corporate Guarantees/Negative Pledge
aid investment and credit decisions, and the methodology vii. Domiciliation of Receivables (subject to stringent
scores both the obligor and the facility based on a set of
parameters. The objective is to eliminate subjectivity in the criteria on a case-by-case basis)
appraisal process while promoting transparency and
predictability to investment decisions. IFRS9 METHODOLOGY
Jaiz Bank has automated its IFRS 9 model for the computation
Collateral Policy to Mitigate Credit Risk of Expected Credit Loss (ECL) on its financial instruments.
To mitigate all credit risks associated with our investment The model is compliant with Shari’ah standards and products
activities, Jaiz Bank employs policies to cushion those risks. and the credit models and financial policies in use have been
One of the most common of these policies that is also Shari’ah further refined. In developing the ECL models, the Bank
compliant, is accepting collateral in respect of financing to our adopted the following steps:
customers.
Data Preparation
As part of its overall risk management, the Bank uses various The first step was to prepare the required data based on IFRS
methods to manage exposures resulting from changes in 9 requirements. Activities in this step included but not limited
credit risks, liquidity risks, market risks (including profit rate to the exclusion of bank charges from the investment book
risk, foreign exchange risk, and equity price risk), and and allocation of shared collateral values for the same obligor
operational risks. The Bank manages its credit risk exposures based on exposure amounts.
through diversification of financing and investing activities to
avoid undue concentration of risk with individuals and groups Portfolio Segmentation
of customers in specific locations or businesses. Based on shared credit risk characteristics, exposures in the
A portfolio allocation plan and the minimum risk asset Bank’s credit portfolio were grouped into 3 segments for
acceptance criteria (RAAC) are reviewed annually as part of which separate models were developed: Corporate, Retail
the budgeting process, while considering the budgeting and and Off-balance sheet.
strategic goals of the Bank.
Stage transfer criteria
To guard against liquidity risk, management has diversified Assumptions for assessing Significant Increase in Credit Risk
funding sources and assets are managed with a view to (SICR) were developed and utilized in classifying different
manage liquidity while considering maintaining a healthy exposures into Stage 1, Stage 2, and Stage 3 buckets.
balance of liquid assets (i.e., cash and cash equivalents). The
Estimation of Probability of Default (PD)
A robust model for the estimation of Lifetime Probability of
Default (PD) was developed by assessing ratings transition
using historical data of five (5) years per investment product
28
Risk Management Report
type. Forward looking information was incorporated using a thresholds for turnover and balance sheet size.
regression model that simulates the expected PD term ii. Retail: This segment of the portfolio contains facilities
structure under three distinct macroeconomic scenarios.
to individuals and entities classified by the Bank as non-
Estimation of Exposure at Default (EAD) corporate.
The EAD model estimates the expected outstanding balance iii. Off-balance sheet: This segment of the portfolio
at each point in time based on the outstanding balance as of contains investments resulting from Guarantees,
the reporting date, nature of the products, contractual Letters of Credits and Undrawn Commitments under
repayment structures, foreign currency, prepayment rates, Murabahah facilities
and moratorium concessions. For revolving facilities such as
Murabahah products and similar products, the undrawn Default Definition
portion is treated under the off-balance sheet portfolio.
In accordance with the IFRS 9 standard, the Bank considers
Estimation of RecoverableAmount default for the purpose of stage classification. Facilities that are
The recoverable amount per exposure was obtained at each more than 90 days past due are classified as being in default.
point in time by segmenting the collaterals by type (with The implication of this is that, if there is at least one default
mortgages further segmented based on location) and event for a client on one of their exposures, all other
projecting future values per collateral type based on historical exposures to the client are in default.
growth rates, forced sale haircuts, perfection status, expected
time to recovery and direct costs of recovery (including Development of staging criteria
additional cost for unperfected collaterals). The model also
includes unsecured recoveries based on estimated historical In applying the IFRS 9 standards, it is critical to ascertain
recovery rates whether the credit risk of a facility or receivable has increased
significantly relative to the credit risk at the date of initial
Estimation of Loss Given Default (LGD) recognition. This is the basis with which an entity may change
The LGD at each point was estimated as a function of the EAD its calculation of impairment from 12-month ECLs to Lifetime
and the recoverable amount. Assumptions were made for the ECLs. To determine whether such an increase has occurred,
LGD for unsecured exposures based on the BASEL an entity must consider reasonable and supportable
convention and peculiarities of the Nigerian operating information that is available without undue cost or effort,
environment. including information about the past and forward-looking
information.
Estimation of ECL Probability-Weights
The probability weights of each macroeconomic scenario Additionally, the CBN Guidance Note on IFRS 9
were determined by analysing the NSE All-Share Index implementation advises banks to consider quantitative,
volume over a select period. The probabilities of the upturn qualitative and ‘backstop’ indicators in assessing significant
and downturn scenarios were determined by considering increase in credit risk. Different indicators are implemented in
periods of outlying index values outside of a specified base this model, and they are based on:
threshold.
a) Days past due
Final ECL Computation b) Prudential classification
The resultant ECL is a product of the EAD, LGD and PD c) Forbearance (restructured)
calculated based on the probability weights of each d) Credit rating migration
macroeconomic scenario. To account for the opportunity
cost, the ECL was also discounted to present value using the While IFRS 9 allows the assessment of significant increase in
Effective Rate of Return of each exposure. credit risk to be carried out individually or collectively for
financial assets with homogeneous risk characteristics, this
Portfolio Segmentation model adopts an individual assessment method to enable a
In measuring impairment under the IFRS9 Standard, facilities granular view of the loss allowance across the portfolio. Each
with shared credit characteristics may be grouped and indicator is explained in detail below.
assessed in distinct portfolios. To achieve this, all the Bank’s
financial assets under the scope of IFRS 9 were segmented a) Days Past Due (DPD): This classification is based on the
into three categories namely: number of days from a contractual repayment date after
which the obligor has not paid the contractual repayment
i. Corporate: This segment of the portfolio contains amount. In deriving this classification, the following thresholds
facilities to the Corporate, Commercial and Public were applied:
sector entities grouped based on internally defined
Stage Classification Days Past Due
I. Stage 1 Less than 30 days
ii. Stage 2 Between 30 – 90 days
iii. Stage 3 Above 90 days
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Risk Management Report
The Bank has put in place adequate systems to accurately The Bank holds capital at a level that the Board considers
compute days past due of investments. necessary, and the assessment of minimum capital
requirements is a combination of regulatory requirement and
b) Prudential Classification: In staging its financial assets, the sound judgment exercised by the Board. In assessing the
adequacy of its capital, the Bank considers its risk appetite, the
Bank also considers the CBN prudential classifications as material risks to which the Bank is exposed, and the
appropriate management strategies for each of the material
shown below: risks, including whether capital provides an appropriate buffer.
Stage Classification Prudential Classification The Bank calculates the adequacy of its capital on an annual
basis through the Internal Capital Adequacy Assessment
i. Stage 1 Performing Process (ICAAP) which is reviewed by the Board and
reported to the CBN.
ii. Stage 2 Watchlist
MARKETAND LIQUIDITY RISKS
iii. Stage 3 Substandard, Doubtful, Lost The Market & Liquidity Risk Unit monitors the Treasury’s
management of liquidity and market risk exposures within a
c) Forbearance Flag: The stage classification is also defined framework of the well-defined risk appetite that enables the
based on whether a facility has been restructured due to Bank to enhance shareholders’ wealth while retaining its
forbearance at any point since initial recognition. In deriving competitive advantage.
this classification, the following was applied:
As a NIFI, the Bank is exposed to the rate of return risk in the
Stage Classification Forbearance Flag context of its overall balance sheet exposure. An increase in
industry benchmark rates may result in Investment Account
iv. Stage 1 No Forbearance Holders’ (IAHs) having expectations of a higher rate of return
v. Stage 2 Forbearance granted on their deposits, failure of which can turn to a Displaced
Commercial Risk (DCR). In consideration, the Bank analyses
d) Credit Rating: This classification indicates the obligor’s the Rate of Return Risk and has developed a reporting format
credit rating, and it takes into consideration the initial credit to the Asset & Liability Committee (ALCO) to identify,
rating and the credit rating as of the reporting date. measure, and mitigate the risk of DCR to protect the interest
of Investment Account Holders.
Stage Classification Credit Rating Migration
i. Stage 1 Liquidity Risk is the risk that the Bank does not have sufficient
Rating downgrade of not more financial resources to meet its obligations as they fall due or
ii. Stage 2 than 2 notches since initial will have to meet the obligations at a higher cost. This risk
iii. Stage 3 recognition. arises from mismatches in the timing of cash flows. Funding
Rating downgrade of more than risk (a form of liquidity risk) arises when the liquidity needed
2 notches since initial recognition. to fund illiquid asset positions cannot be obtained at the
Default. expected terms and when required.
Model classification: The model classification is the resultant As a protective measure against liquidity risk, the Bank solicits
stage classification based on the indicators outlined above. and attracts various sources of funds to channel to its financing
The maximum stage classification value is determined to be and investment activities in Shari’ah compliant instruments
the model classification of each obligor. from the money and capital markets, where available. The
Bank, in conjunction with other NIFIs and the regulators, has
Classification override: There are specific instances where worked on the development of additional compliant
the Bank may possess alternative information that defines an instruments, which are now in use.
exposure’s stage classification, despite the resultant model
classification. For such instances, an option has been provided Operational Risk
in the model to provide a stage classification based on the Operational Risk is defined as a risk of loss arising from failure
Bank’s expert judgement that will be assigned to the exposure in internal processes, people, systems, or external events.
irrespective of the classification based on the model’s
indicators. The responsibility of the Operational Risk Unit in Jaiz Bank is to
prevent the occurrence and /or crystallization of such losses
Final Stage Classification: In instances where the Bank and/or to reduce the impact and severity when they occur.
provides a classification override, that becomes the final stage The Unit achieves this by creating appropriate policies and
classification. Otherwise, the model classification is the final platforms to reduce the occurrence of such incidences. Some
stage classification.
CAPITAL MANAGEMENT
The Bank maintains sufficient capital resources to support its
investment credit business and general business growth.
Capital adequacy is reviewed periodically alongside the
monitoring and reporting of changes to the capital forecasts.
The Board considers the need to change its capital forecasts
and capital plans based on these reviews.
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Risk Management Report
of the objectives of operational risk are attained by ensuring iv. Legal, fiduciary, regulatory and strategic risks are also
that trained and competent people – and appropriate managed appropriately.
infrastructure, controls, and systems – are in place to ensure
the identification, assessment, and management of all The Bank is also exposed to risks relating to its fiduciary
significant risks. responsibilities towards fund providers. Fiduciary risk arises
from the failure to perform in accordance with explicit and
An operational risk framework is in place to guide the implicit standards applicable to an Islamic bank’s fiduciary
governance and implementation of operational risk. The responsibilities, leading to losses in investments or failure to
objectives of the framework are. safeguard the interests of the investment account holders.
The appropriate mechanisms are in place to safeguard the
i. Minimize or eliminate losses attributable to interests of all fund providers. Where investment account
operational risk. holders’ funds are commingled with the Bank’s own funds, it is
ensured that the basis for asset, revenue, expense, and profit
ii. Ensure operational risk awareness and effective allocations are established, applied, and reported in a manner
control of operations. consistent with the Bank’s fiduciary responsibilities as
approved by the regulatory authorities.
iii. Improve performance measurement and feedback.
iv. Embed early warning signals when exceptions occur to Compliance Risk Management
build resilience. The Bank’s compliance function organizes and sets priorities
for the management of its compliance risk in a way that is
The basic tools of operational risk management i.e. the Risk consistent with the Bank’s risk management strategy and
Register; Risk Control Self-Assessment (RCSA), Key Risk structures.
Indicator (KRI), Issues & Action Plan reporting, and Loss Trend The compliance function works closely with Internal Audit
reporting have been incorporated in order to lead to seamless and Risk Management to assess the Bank’s risks, provides
reporting, analysis, mitigation and eventual prevention of backbone for integrated assurance and higher visibility of risk
operational risk losses that may be inherent in the system. The management and control consciousness across the Bank. To
Bank is ISO-certified for business continuity; for information attain this, the Department has continued to review and fine-
security; and payment card security as follows. tune its approach and also improve on its advisory role with
intense focus on regulatory intelligence gathering, compliance
Ÿ ISO27001 monitoring, compliance testing and closer cooperation with
Ÿ ISO22301 business units within the Bank and external stakeholders.
Ÿ ISO20000 The Bank acts as a contact point for compliance inquiries from
Ÿ Payment Card Industry Data Security Standard – staff members to deepen the cooperation with the first line of
defence. As we race to catch up with the current digital
(PCIDSS) banking revolution, we are determined to meet up with the
speed of growth in the sector taking into consideration the
Documentation and Other Unique Risks emergence of FinTech. We are enhancing our monitoring of
Shari’ah Non-Compliance risk is the risk that arises from online real-time activities to be able to mitigate the risk of non-
failure to comply with the rules of Shari’ah and its principles as face-to-face transactions as the world is moving towards
determined by the Bank’s Advisory Committee of Experts virtual banking.
(ACE) and the Central Bank’s Financial Regulatory Advisory To achieve this, the Bank has a software that generates alerts
Council of Experts (FRACE). Shari’ah compliance is critical for of transactions on a risk-based approach by focusing on the
NIFIs’ operations and such compliance requirements must high-risk areas thereby spotting non-conformities in terms of
permeate throughout the organization’s products and transaction threshold or history.
activities. The Bank is strictly determined to comply with
Islamic commercial jurisprudence in all its activities. Measurement, Monitoring, and Management Of
Other unique risks are exclusively associated with NIFIs which Compliance Risk
the Bank manages through effective monitoring and
complying with pre-, and post, -disbursement modalities, At Jaiz Bank, compliance risk is assured by:
namely – Ÿ Assessing the type of customer to be onboarded, their
i. Risk of continuity of usufruct in Ijarah since a
nature of business, the channels through which the
fundamental ethical axiom in Ijarah is that “rent is a business transactions are being carried out and the
price of usufruct; it is due as long as usufruct exists”. location risk. The Bank has developed risk controls and
ii. Reputational risk due to breach of Shari’ah compliance mitigants adequate to bring the identified risks to an
which may result to loss of shareholders and IAHs’ acceptable level.
confidence.
iii. Ownership Risk which is that risk associated with
owning a property, asset, or commodity especially in
Murabaha and Ijarah modes.
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Risk Management Report
Ÿ Continuously monitoring for changes in the risk by STRESS-TESTING
reviewing customers’ transactions and behaviours and To increase resilience and anticipate shocks, the Bank
investigating non-conformities for report to the relevant conducts a stress test on its capital adequacy and liquidity
agency of government, where the transaction is observed position quarterly under a range of scenarios. The scenarios
to be suspicious. are agreed by the ALCO and reviewed by the EXCO, and
regularly updated to reflect the Bank’s risk profile and external
Ÿ Continuously managing compliance risk by establishing risks, including risks associated with the economic cycle.
and communicating appropriate policies and procedures
to employees and other stakeholders and training Where applicable, the stress tests cover all relevant risks to
employees on them and monitoring their activities to which the Bank is exposed, for example, capital adequacy
ensure their observance. stress tests based on macro-economic scenarios would be
geared towards analysing the impact on both credit and
Ÿ Continuously reporting compliance risk issues to the market risk exposures.
Management and Board for effective decision making and
proper guidance. Liquidity stress tests are performed monthly and capital
adequacy stress tests yearly. In addition, periodic ad-hoc stress
Ÿ The Bank and its entire staff are committed to high tests are performed as required by the BOD, Executive
standards of integrity and fair dealing in the conduct of Management, or the ALCO.
business. The Bank continues to recognize its
accountability to all its stakeholders under the legal and Detailed results of stress tests are presented to the ALCO,
regulatory requirements applicable to its business. The including the impact of the stress scenarios on the Bank’s
Bank’s compliance risk management philosophy is capital requirement, its capital resources, and its profitability,
deepened by the effective convergence of risk while summary results are presented to the ExCo. Stress
management through the ‘Three Lines of Defence’ model. testing is used to determine the Bank’s capital adequacy, the
sustainability of returns, the adequacy of its liquidity position
Ÿ Effective Compliance Risk Management in Jaiz Bank will and to influence strategy and medium-term planning. The
continuously be coordinated in the following manner: Bank prepares and presents to the CBN the Internal Capital
Adequacy Assessment Process (ICAAP) report on an annual
Ÿ Where a business unit is subject to regulatory basis, based on the preceding year’s financial information as
requirements, it will comply with those requirements. The approved by the CBN.
business unit will further establish and maintain systems of
internal control to monitor and report the extent of WRITE OFFAND RECOVERIES
compliance with those requirements with the support of The Board of Directors approved in 2021 a new write off
the Compliance function. policy for cancelling the record of bad debts and
acknowledging the loss of, or failure to recover an asset. After
Ÿ In the absence of regulatory requirements for all or part of full evaluation of a non-performing exposure, and if either
a business unit, certain minimum standards of conduct are one or all the following conditions apply, such exposure shall
established and maintained by that business unit to the be recommended for write off.
extent required as determined by the management of
that business unit and in line with global best compliance i. Continued contact with the customer is impossible.
practice or Code of Conduct and Ethics of the Bank. ii. The recovery cost is expected to be higher than the
BASEL III IMPLEMENTATION outstanding debt.
iii. The amount obtained from realisation of the collateral
The CBN introduced the new Basel III regulations in 2021 and
commenced a parallel run from November 2021 before the leaves a balance of the debt.
final adoption. Banks are required to report in more detail in iv. If it is reasonably determined that no further recovery
the areas of their liquidity ratios, required liquidity coverage
ratios, large exposures and to provide a detailed calculation of on the facility is possible.
their liquidity through the Internal Liquidity Adequacy
Assessment Process (ILAAP) bi-annually. The Board maintains All investment facility writes off require endorsement at the
oversight of the process thereby ensuring that the Bank has appropriate level as defined by the Board. Similarly, investment
adequate liquidity and funding sources. writes off approvals are documented in writing and properly
signed by the approving authority. Whenever amounts are
The main impact for banks is in the following areas - recovered on previously written off investment exposures,
such amount recovered is recognized as income on a cash
1. Complying with the requirements for the prescribed basis only.
quantity of capital (Common Equity Tier I (CET1),
Risk-Weighted Assets (RWA), buffers etc. MUSA POTISKUM, IRMCert.
Chief Risk Officer
2. The importance of Tier1 capital over all others, and its
impact on the dividend policy, for instance.
3. Additional compliance burden on banks that have not
been able to fully implement Basel 1 and II.
32
Sustainability Report
FOREWORD BY THE CEO
Jaiz Bank is strategically determined to integrate sustainable commitments to more social impact financing, accelerating
business practices into its operations. We strive to support the pace of sustainable practices to save our planets, and
sustainable economic growth that is profitable, increasing our efforts around governance and management.
environmentally responsible and socially relevant in helping The following are some of our key achievements during the
customers to access more and achieve their dreams. Our year under review:
environmental, social and governance (ESG) agenda is
embedded in what we do and create concrete examples of • More than 5,500 women in the rural communities
the empathy that our firm sees every day as we work to serve benefited from our financial empowerment program
our clients, customers and communities. worth N95,000,000.00 achieved through our JAFIC
business model.
I believe there is greater opportunity for those of us in the
private sector to step up and lead on this sustainability journey, • Financed the growth and empowerment of artisan leather
and as a Bank, we are committed to doing our part. We will producers, garment manufacturers, other associations,
continue to work with our clients to evaluate and minimize the and cooperatives within Kano metropolis to the tune of
sustainability risks and vulnerabilities that their business poses, N115,000,000.00
while also ensuring that our own company’s direct negative
impacts on the people and planet are reduced. • Over 10,000 accounts were opened and BVN enrolment
conducted for people in the remotest communities of
For us, adopting more sustainable practices in our business Katsina to drive the financial inclusion for financially
activities and operations mitigates risks and can be a leverage excluded individuals.
for competitive advantage, thus our determination to keep
aligning with relevant principles. This is further reinforced by • ESG screening of 10,395 credit facilities, with the aim of
our memberships in the Nigerian Sustainable Banking identifying the impacts and setting appropriate targets.
Principles (NSBP), and the United Nations Environment
Programme Finance Initiative (UNEP FI) Principles for • Partnership with the Promotion of Agricultural Finance
Responsible Business (PRB). Being a member of the UK for Agri-Based Enterprises in Rural Areas – Nigeria
Islamic Finance Council Forum (IFC) has also allowed us to Project- AgFin, a GIZ funded project to support Small
effectively collaborate, learn from peers and forge a positive Holder Farmers (SHFs), reduce poverty level, reduce
future for all stakeholders and the society, whereby leveraging hunger, and promote sustainable jobs.
on the UNEP FI PRB framework for the Islamic global banking
system to pool collective knowledge, and accelerate a positive - 780 SHFs trained for dry season farming out of which 400
global transition in line with the SDGs and the Paris SHFs were financed worth more than N129million.
Agreement.
In 2021, we focused on raising the bar in terms of our - 100 SHFs trained for wet season farming, out of which 82
SHFs were financed worth more than N13.8million.
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Sustainability Report
- 135 Women Paddy Processors trained, and 128 accessed As an institution, we must continue to live by our core values
financing worth more than N23million. of Responsibility, Entrepreneurship, Simplicity, Partnership,
Excellence, Customer Focus, and Trust. This implies that we
• Automation of some of our key processes resulting in the will have RESPECT for people, the environment, and maintain
reduction of carbon footprints in our business operations. our focus on safety. This includes our commitment to doing
For instance, the percentage of paper recycled increased business in an ethical and transparent way.
from 3.4% in the year 2020 to 22% in year ended 2021.
This we intend to further drive to reduce our carbon I invite you to learn more about our ESG efforts in the pages
footprints in all areas. that follow. This is a continuous journey for us, and I believe
harnessing the full power of our businesses will continue to
• Development of relevant frameworks ongoing to help solve society’s toughest challenges. The opportunities
adequately evaluate, monitor and manage our ESG risks. and obligations for us have never been greater and, as the
CEO, I am determined to ensure that Jaiz Bank to continues to
• Additional deployment of alternative sources of energy to respond favourably to all issues that affect our stakeholders
our branch locations. Two new branches opened within and the country at large.
the period have solar power installed, while there is also
ongoing solar installation project for critical loads at the Hassan Usman, FCA
Bank’s new head office complex. Managing Director/Chief Executive Officer
• Sustainability workshops/trainings conducted for various
levels of staff across the Bank including Executive
Management.
Our people remain Jaiz Bank’s greatest asset, and we are
absolutely committed to being a firm where everyone can
show up to work as their true, authentic, and whole selves,
knowing that their contributions will be measured solely on
their merits and their voices will always be heard.
34
Sustainability Report
SUSTAINABILITY OVERVIEW
OUR SUSTAINABILITY PILLARS
Balance is an important dimension in our approach, hence we focus on striking the
necessary equilibrium between our business activities and operations, while
making sure that we create required social impacts as an institution. To this end, our
approach to sustainability balances is anchored on these three pillars– (i)
Responsible Business Activities, (ii) Responsible Business Operations and (iii)
Creating social impact.
RESPONSIBLE BUSINESSACTIVITIES
In line with the Shari’ah Principles which serves as our foundation, and other
relevant sustainable banking principles, we deliver products and services that
promote sustainable development, and conduct our business in a fair and
responsible manner. Promoting responsible financing and financial inclusion, and
ensuring that we take a proactive stance to protect our customers’ information
which are vital elements for our sustainable business.
RESPONSIBLE BUSINESS OPERATIONS
Our most important resource remains our people. Therefore, we remain
committed to doing right by our employees, and consider environmental and
societal considerations in our day-to-day business operations. We provide an
inclusive work environment where every employee can develop professionally and
personally. We are conscious of our need to manage our direct environmental
footprint and seek to influence our supply chain towards sustainable practices.
CREATING SOCIAL IMPACT
Supporting social enterprises has been our aim to promote their growth and
increase in bottom line, thus giving back to the communities in which we operate
through the various entrepreneurship programmes/workshops and the green
initiative.
OUR SUSTAINABLE DEVELOPMENT GOALS (SDGS) PROGRESS
As a signatory member of the UNEP FI Principles for Responsible Banking, we are committed to driving progress towards
achieving SDGs. Affirming our role in promoting sustainable development, Jaiz Bank has a role to play in all 17 goals, however, our
business most directly impacts the thirteen highlighted here:
35
Sustainability Report
SDG RELATED PILLAR RELATED SDG 2030 UN SELECTED PERFORMANCE
MATTERS ESTABLISHED INITIATIVES OUTCOME
TARGETS
Responsible Business Financial Inclusion Inclusive economic • Jaiz Financial • Supporting the
Activities growth to provide Inclusion economic
sustainable jobs and Centers empowerment of
promote equality ( JAFIC). >5,000 women in
the remote Local
Government
communities of Mai
Adua, Baure,
Zango, and Daura
in Katsina State.
• Empowered • Over 100 women
women empowered as
through the waste pickers
Green Account through the
Initiative. partnership with
recycling companies
to drive the Green
Initiative.
• MSME
Financing for • Strengthening
Entrepreneurs businesses through
provision of
financing to 10,936
MSME
Entrepreneurs.
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Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED OUTCOME
PILLAR MATTERS INITIATIVES
TARGETS
Creating Social Social • Conducted • The MSME workshops
workshops to provided lessons on
Impact Entrepreneurship enhance social economic growth and
impact. business expansion to
>300 entrepreneurs.
Responsible Responsible Offer solutions for • Partnered with • Through this partnership,
Business Financing
Activities development, to the Promotion of over N165million was
eradicate hunger Agricultural granted as credit facilities
and poverty Finance for Agri- to >900 SHFs and
Based Enterprises Women Paddy Processors.
in Rural Areas –
Nigeria Project-
AgFin, a GIZ
funded project to
support Small
Holder Farmers
(SHFs), reduce
poverty level,
reduce hunger,
and promote
sustainable jobs.
Responsible Workplace Ensure healthy lives • Health Insurance • Availability of affordable
Business Well-being and promote well- • provision for staff NHIS for staff to cater for
Operations being for all health needs.
employee Health sessions conducted
Conducted • for all staff to create
Health Talks & awareness on topics such
Awareness as diabetes, sedentary
sessions lifestyle, stress
management etc.
• Medical Health • Basic medical health
checks done for checks on diabetes, blood
Staff. pressure, weight
measurement etc.
• Introduced Health • conducted for staff across
facilities for staff the Bank.
well-being. Provision of two
gymnasium facilities for
staff at the Head Office
and Training School.
Responsible Financial Support women’s • Women • Supporting
Business Inclusion equal rights to economic empowerment of >5,000
Activities economic resources, empowerment women in the remote
as well other and financial Local Government
resources inclusion through communities of Mai
the JAFIC. Adua, Baure, Zango, and
Daura in Katsina State.
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Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED OUTCOME
PILLAR MATTERS INITIATIVES
TARGETS
Responsible Diversity Ensure women’s full • · Recruitment • A 7% increase was
Business and equal
Operations opportunity and effective of competent achieved for female
participation and female employees into the system.
equal opportunities employees for
for employment equal • We maintained effective
and leadership opportunities participation and
various levels of contribution of our female
decision-making • Participation of employees in key decision-
female making process at the
employees in functional levels, while
decision creating equal
making opportunities for
leadership positions within
the Bank.
Creating Social Promote necessary • Technology • Deployment of enabling
Social Impact Entrepreneurship foundation for deployment and technology, and awareness
women, leading to provision of programmes to promote
peaceful, awareness the empowerment of
prosperous, and programmes for women especially at the
sustainable world. women JAFIC locations.
Responsible Climate Promote financing • Financed clean • Solar power equipment
Business Change
Activities of renewable and renewable and PVC panel financing
energy in the energy of over N100 million.
global energy mix technologies
Responsible Managing our Substantially • Migration to • 5 renewable energy
Business Environmental projects completed for
Operations footprints increase our renewable our branches.
renewable energy energy source One renewable energy
project for critical loads
as alternative for more of our ongoing at our new Head
Office building.
source of energy business •
Over 5,000 women
for our business locations. assessed financing under
the JAFIC platform
operations across
MSME financing to
all locations. support economic growth
and workers scale up for
Responsible Financial Encourage and • Onboarding of • entrepreneurs and their
Business Inclusion expand access to more women on businesses.
Activities banking and the JAFIC
financial services platform, and Advanced the E-learning
for all MSME financing • platform for learning and
for associations development of
in Kano. employees.
Responsible Talent • Achieve Continued investment •
Business Management
Operations and Retention higher levels in employee digital
of economic transformation
productivity
through
diversification,
technological
upgrading and
innovation
38
Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED OUTCOME
PILLAR MATTERS INITIATIVES
TARGETS • 310 entrepreneurs
benefitted from the
Creating Social Support productive • Continued “Spark up your
Social Impact Entrepreneur activities, decent job support of business”; “Accessing
ship creation, social MSME Finance” “Digital
entrepreneurship, enterprises via Transformation”
creativity and our annually workshop sessions to
innovation through administered support healthy
access to financial events to aid business growth.
services entrepreneurs
Responsible Financial Inclusion Increase access of • Participated in • Our participation in
Business small-scale SMEDAN the SMEDAN
Activities industrial and other Conditional Grant project is still
enterprises to Scheme funds ongoing, and covers
financial services, programme to different states in
including affordable support SME Nigeria; Yobe,
credit facilities and growth Delta, Kaduna,
integration into Borno, Adamawa,
value chains and Kebbi, Plateau, and
markets Jigawa.
Responsible Managing Our Upgrade • Implemented the • The deployment of
Business Environmental infrastructure to
Operations Footprint make them Hyperconverge the HCI brought
sustainable, with
increased infrastructure (HCI) about improvement
resource use
efficiency and software (a unified simplicity, efficiency,
greater adoption
of clean and system). It is a and higher reliability
environmentally
sound solution that of all our applications
technologies
combines and helps to 94%.
to manage all the • It also led to
bank's servers from reduction in energy
one point, and where consumption, thus
all the bank's having a cleaner
software applications environment and
are seated. sound technology.
Creating Social Support domestic • Organized Coding • 120 Kids were
trained on IT Coding.
Social Impact Entrepreneurship technology Programmes for Participants from 7
different countries
development, Kids to build the attended the
programme.
research and innovative minds
innovation and catch them
young.
Responsible Financial Reduce • Curated appraisal • 1,170 business
Business Inclusion inequalities in all process for credit owned women
Activities spheres with facilities against the accessed credit
attention to the traditional facilities, and 2,945
needs of prejudices around women individuals
disadvantaged female owned or also accessed credit
individuals managed facilities.
businesses
• Ramps have been
• Provisioned ramps constructed at all our
at branch locations branch locations to
for the aid movement for the
disadvantage physically challenged
individuals customers
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Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED OUTCOME
PILLAR MATTERS INITIATIVES
TARGETS
Responsible Diversity and Reduce inequalities • Provided equal • Vacancies existing within
Business Equal
Operations Opportunity in all spheres with opportunities the system were opened
attention to the to our to competent employees
needs of employees both males and females,
disadvantaged both males and providing equal
individuals females, while opportunities to thrive in
reducing career.
inequalities in
all spheres.
Responsible Responsible Increase access to • Provided credit • 464 customers were
B u s i n e s s Financing affordable housing facilities to ensure screened for ESG risks and
Activities access for granted credit facilities for
majority to safe and affordable
adequate, safe and housing.
affordable
housing. Electronic means of
communication and
Responsible Managing Our Promote • Incorporated • automation of key
Business Environmental sustainable responsible processes to reduce paper
Activities Footprint practises among consumption and consumption.
employees recycling
• Paper recycling recorded a
22% increase from 3.4%.
• Switch-off electricity policy
and awareness in place to
reduce energy
consumption.
Supplier Encourage • Integrated • Our suppliers are
Responsibilities suppliers to adopt procurement screened and evaluated
sustainable practices and for ESG risks prior to
practices principles that onboarding.
are sustainable,
in accordance
with relevant
policies.
Responsible Responsible Improve education, • Improve • Credit facility of over
Business Business awareness-raising education, N100million granted for
Activities Activities and human and awareness-raising Solar power equipment
institutional capacity and human and and PVC panel.
on climate change institutional
mitigation, capacity on
adaptation and climate change
impact reduction of mitigation,
our business adaptation and
transactions impact reduction
of our business
transactions
40
Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED OUTCOME
PILLAR MATTERS INITIATIVES
TARGETS
Responsible Managing our Improve education, • Continued to • Tracking and evaluating the
Business
Operations environmenta awareness-raising broaden our impact of our carbon
l footprint and human and knowledge and footprints, while putting in
institutional capacity awareness on place measured to reduce
on climate change the impacts of the negative impacts.
mitigation, our daily
adaptation and business
impact reduction of operations on
our business the
operations environment
Responsible Responsible Build effective • Conducted • Customer Due Diligence
Business Financing accountable
Activities institution at all assessment of (CDD) were carried out
levels
individuals/busines on customers, and on a
Access to fair
justice for all ses to avoid continuing basis to avoid
employees across
board. finance or transaction relationships
Revitalize support of any that promotes violence
partnerships for
sustainable transactions and
development
activities that
promotes
violence, or
produce harmful
substances that
will affect the
people,
environment and
the economies
where we
operate.
Responsible Workplace • Developed • Relevant governance
Business Well-being
Operations strong structures in place include:
governance Board Governance
structures and structure; Organizational
policies to build a structure, Sustainability
strong institution governance structure etc.
and ensure that Policies in place guiding
all employees are employees include;
treated with Employee handbook, Anti-
equity bribery and Corruption
policy, Information Security
policy etc.
Responsible Learning and • Continued to • Conducted relevant
Business Development
Operations build capacity training on Sustainable
across the Bank, Banking: Sustainability
while Banking awareness training
collaborating for all staff, E&S Risk
with all relevant governance training for
stakeholders for specific Risk Management
sustainable Team, Sustainable Business
development Strategy training for
progress. Senior Management, ESG
Sustainability training for
Executive Committee
Members.
41
Sustainability Report
SDG RELATED RELATED SDG 2030 UN SELECTED PERFORMANCE
ESTABLISHED INITIATIVES OUTCOME
PILLAR MATTERS
TARGETS • Collaborated with Islamic
Finance Council to
collectively achieve the UN
Sustainable Development
Goals.
• Collaborated with
members in the industry;
ESG Consultant, and other
relevant stakeholders.
JAIZ BANK'S SUSTAINABILITY GOVERNANCE STRUCTURE Implementation
and reporting by
all key Business
Units
Chief
Executive
liaison
The Board has overall responsibility for sustainability and engaging with a wide variety of stakeholders on a regular basis,
integration of environmental, social and governance (ESG) we build a clearer understanding of complex global challenges
matters in the formulation of Jaiz Bank’s strategy. The Board is and of the local conditions of Nigeria. The underlying
responsible for determining what are the material principles of Jaiz Bank’s ongoing engagement strategy are:
sustainability matters and provides guidance on their
management and monitoring. The EXCO is engaged on all • Information sharing and disclosure
material sustainability-related matters. To ensure sustainability
is embedded in the organisation, the Corporate Responsibility • Participating in active dialogue
Committee chaired by the MD/CEO oversees all required
initiatives that drive our sustainability journey. • Collaborating on issues of mutual interest
STAKEHOLDER ENGAGEMENT • Acting on input provided by stakeholders
Jaiz Bank’s teams regularly gather feedback on emerging issues
and on our performance quality, including reporting from
sources such as stakeholder inquiries, and key ratings and
rankings. Engaging stakeholders and establishing collaborative
partnerships is an essential element of our ESG strategy. By
42
Sustainability Report
STAKEHOLDER GROUP ENGAGEMENT METHOD & FREQUENCY REFLECTIONS & FEEDBACK FOR 2021
INVESTORS • Quarterly financial results • Focus on non-performing assets
• Quarterly investors meeting • Dividend payout
• Annual analysis and Facts Behind the • Strategy implementation
• Cost reduction
Figures meeting at the Stock • Raising capital buffers
• Compliance with Financial Reporting
Exchange
• Annual report Press releases Council Corporate Governance Code
• The Annual General Meeting • Strategic succession planning
• The dedicated “Investor Relations” • Digital transformation & Innovation
section on Bank’s website
• Quarterly Board meetings • Capital injection
• Quarterly financial results Board • Improved financial results
committee meetings • Strategy implementation
BOARD OF DIRECTORS • Board strategy retreat • Strategic cost management
• Annual General Meeting • Management Leadership Succession
planning
• Legal and regulatory compliance
• Quarterly training and Capacity • Increased learning and development
Building for all employees
• Monthly sensitization through the • Initiatives and activities to create more
EMPLOYEES Bank’s internal platforms. Social Impact
CUSTOMERS
SUPPLIERS • Annual Strategy Session • Improve awareness across platforms
• Quarterly engagement forums • Need to maintain market competitive
• Bi-annual Inter-departmental surveys compensation and benefits
• Career growth
• Bi-Annual Customer satisfaction • More awareness programs.
surveys • Digital transformation
• Daily in-branch interaction • Seamless access to credit facilities
• 24/7 Contact Centre interaction • High up-time on all customer touch
• One-on-one account relationship points
management • Information security and confidentiality
• SMS and email blasts • Product & service pricing
• Social media real-time interaction
• Annual report releases
• Periodic awareness and workshops
• Annual Central Bank Risk-based • Increased learning and development
Examination. for all employees
• Daily, Quarterly and Semi-annual & • Initiatives and activities to create more
Annual Returns to the Central Bank Social Impact
and the Nigeria Deposit Insurance • Improve awareness across platforms
Corporation (NDIC) • Need to maintain market competitive
• Annual Federal Inland Revenue tax compensation and benefits
audit and meeting • Career growth
• Quarterly reports to the Securities and
Exchange Commission and the Nigeria
Stock Exchange (NSE)
• NSE Issuer Portal
• Annual NSE investor facts behind the
figure
43
Sustainability Report
STAKEHOLDER GROUP ENGAGEMENT METHOD & FREQUENCY REFLECTIONS & FEEDBACK FOR 2021
• Annual Central Bank Risk-based • Financial performance
GOVERNMENT Examination. • Regulatory compliance
(REGULATORS)
• Daily, Quarterly and Semi-annual & • Corporate Governance
Annual Returns to the Central Bank • Social and environmental impact
and the Nigeria Deposit Insurance • Adequacy of deposit insurance
Corporation (NDIC) • Investor protection
• Annual Federal Inland Revenue tax
audit and meeting
• Quarterly reports to the Securities and
Exchange Commission and the Nigeria
Exchange Group (NGX)
• NGX Issuer Portal
• Annual NGX investor facts behind the
figure.
LOCAL COMMUNITY • Annual Financial Literacy Day • Empowerment of youth
lecture • Promotion of social entrepreneurship
• Financial inclusion
• MSME Entrepreneurship • Sponsorships and donations
workshops for business growth
and better financial knowledge.
MATERIAL ESG MATTERS
An important input to our Sustainability strategy and reporting is an ESG materiality assessment. The assessment helps us
understand ESG topics that are most important to our stakeholders and continuously assess our strategy and commitments.
Continuous assessment of our ESG materiality helps us validate priorities relative to business risks and opportunities.
High
Social Workplace Employee Talent Management Customer Governance & Financial
Entrepreneurship Wellbeing Gender and Retention Experience Compliance Performance
Equality
IMPACT ON STAKEHOLDERS Electricity Carbon Consumer Stakeholders Employee
Consumption Footprint Financial Literacy Engagement Knowledge on
Shariah
Fair and Diversity at Financial Risk
Transparent Workplace Inclusion Management
Procurement
Employee Women Employee Work Competitive Responsible Climate Promote
Volunteerism Empowerment Financing Change Micro
Life Balance Salaries & Benefits
Enterpreneurship
Low Vendors Green
Assessment Building
Low IMPACT ON US High
Extremely Material Material Somewhat Material Non Material
44
Sustainability Report
EXPRESSING OUR
SUSTAINABILITY
TARGETS
Supplier
Responsibilities
PILLAR 1:RESPONSIBLE BUSINESSACTIVITIES Prohibited financing
Based on the Shariáh fundamental principles our products The five Maqasid Al Shariah is the fundamental guiding
and services are designed and delivered in an ethical and principle of Jaiz Bank as a non-interest (Islamic) Bank. As part
responsible manner and promote sustainable development. of our process, all our business transactions are screened to
ensure that we do not finance activities or projects which we
a. RESPONSIBLE FINANCING know to be in deliberate violation of local or national laws, or
We finance business activities that will shape economic and are involved in the following:
social development. As a duty to society and shareholders, we
encourage the transitioning of our customers to more • Forced or child labour, and human rights abuses
sustainable models of doing business. We also take a long- • Illegal logging
term view and adopt a balanced approach in supporting • Production, purchase and movement of harmful goods
sustainable development, because we recognise that some
customers who lack the commitment, capacity, or capability to and lethal weapons including arms, ammunitions,
mitigate ESG risks can ultimately affect our own credit and bombs, tanks, military aircraft, warships, anti-personnel
reputation risks. mines, cluster munitions and weapons of mass
destruction (WMD), in which normal use violates basic
ESG RiskAssessment and Mitigation humanitarian principles
Relationship Managers (RMs) using the ESG risk assessment •
template, conducts ESG risk assessments for the credit ESG RiskAssessment
facilities of the Bank. For our business financing in 2021, a total of 10,395
transactions cutting across the various sectors of the bank
ESG risks may include a combination of environmental were assessed for ESG risk. From these portfolios, General
matters such as biodiversity loss, climate change, Commerce sector which included food processing,
deforestation, hazardous waste contamination, water scarcity automobile etc. had the highest number of ESG compliant
and pollution, as well as social matters including labour rights, transactions at 84%.
occupational health and safety and involuntary resettlements.
We reference industry best practices for guidance in
mitigating our ESG risks.
45
Sustainability Report
% of Accounts
1 5 0% 6% AGRICULTURE
84% ARTS, ENTERTAINMENT & RECREATION
CONSTRUCTION
EDUCA TION
GENERAL
GENERAL COMMERCE
HUMAN HEALTH AND SOCIAL WORK ACTIVITIES
INFORMATION AND COMMUNICATION
MANUFACTURING
MINING AND QUARRYING
OIL & GAS
REAL ESTATE ACTIVITIES
TRANSPORTA TION AND STORAGE
Targets the possibilities of positive impact investments. Access to
basic financial services through the various digital platforms
In line with evolving global disclosure expectations, we will available has made it possible for financial institutions to reach
continue to develop robust KPIs to adequately assess the ESG the traditionally underserved segments of the population.
risks of our portfolios, managing the risks, engaging our clients This has substantially promoted financial inclusion and
and customers for collaboration, and tracking our financial literacy, as well as sustainable development.
performance.
b. DIGITAL FINANCE OurApproach
We increased our financial inclusion drive through digital
Digital finance has remained the connecting bridge between platforms. From the 45,369 accounts that were opened in
the financial sector and the society to achieve sustainable and 2021 to drive financial inclusion through digital finance, 85%
inclusive growth. Through digital finance, the cost of of these accounts were via our USSD platforms, and mostly
transactions, acquisitions and networking processes is from the vulnerable underserved segments of the society.
significantly reduced. Progress in digital finance is also
reshaping consumer behaviour, banking habits and Targets
expectations., while also easing the way for directing finance We will continue to invest in our digital transformation to
towards alleviating environmental and social challenges. ESG drive more financial inclusion and help us to better align with
risks and opportunities can now be better priced by investors the needs of sustainable development.
because of better information integrity, thereby enhancing
ACCOUNTS OPENED VIA DIGITAL PLATFORMS
Mobile App
Website 6%
9%
USSD 85%
Website
Mobile App USSD
85%
46
Sustainability Report
c. FINANCIAL INCLUSION • Financing to leather, garment, and other associations
Access to financial services enables vulnerable segments of within the Kano metropolis to the tune of N115million.
the society to improve their circumstances, reduce inequality These include: Sharada Market, Inza, Gaatan, Kano
and can drive economic growth. We view financial inclusion as tailors, Kano garments, Kalamu Wahid, Hasil Ham
a material matter for the financial services sector, and we Cooperatives, Nasrun Minallah, Dan Amana Traders,
remain committed to bringing affordable banking services to Ya r B a i w a , A l b a r k a G e n e r a l A g r i c F a r m e r s
financially excluded individuals and groups particularly in Multipurpose, Gwale 3 Star farmers.
remote communities, including the MSMEs and social
enterprises. • Green Jobs and Initiatives: Through our Green Account
Initiative in partnership with recycling companies to
OurApproach foster cleaner environment, while promoting financial
To achieve this, we will continue to leverage and deploy digital inclusion and decent jobs, the following were achieved;
platforms, while still reaching out traditionally to remote 1,590 active green accounts, 100 women financially
communities where necessary to achieve desired success. included and empowered with jobs as recycling items
With our various financial inclusion projects, we have been pickers, recycling hubs increased from five to twelve
able to achieve some progress on our sustainable active hubs. As a result of this, over 500,000kg of wastes
development journey such as: creation of decent jobs, hunger were removed from the landfill and recycled.
and poverty reduction, gender equality among others.
Targets
The following projects were achieved during the reporting We aim to remain focused on providing financial solutions to
year. cater for the financially excluded individuals and MSMEs,
• Jaiz Financial Inclusion Centers (JAFIC): Using our JAFIC thereby expanding our reach to various communities and
states of the country where we operate.
we empowered women through providing them with
access to financing and financial literacy. A total of 5,875 The pictures below shows some of our JAFIC Women who
women accessed credit facilities at various local benefited from our financial inclusion and access to credit
government in Katsina State: Mai Adua LGA, Baure LGA, financing
Zango LGA, and Daura LGA.
• MSMEs: With our various MSME platforms, 10,936
customers were granted credit facilities worth over
N24.6billion.
47
48
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Jaiz Bank Plc_2021 Annual Report and Account
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