Investors Alert: Jaiz Bank's 2024 Performance and Shareholder Dynamics

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Jaiz Bank Plc, Nigeria’s premier non-interest financial institution and it has released its 2024 unaudited financialstatements to the Nigerian Stock Exchange. If you’re a current shareholder, a potential investor, or someone keenly interested in Nigeria’s financial sector, this is one article you don’t want to skip.

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This deep dig into Jaiz Bank’s latest financial performance reveals not just its impressive profit growth but also some noteworthy insights into its shareholding structure and the nature of its loan assets—particularly loans to related parties.

Jaiz Bank’s 2024 Financial Performance: A Record Year

Jaiz Bank Plc, headquartered in Abuja, Nigeria, reported a net profit before tax of ₦25.3 billion in 2024, marking an impressive 132.72% increase from its 2023 figure of ₦11.0 billion. Earnings per share (EPS) also saw significant improvement, climbing from 32.53 kobo in 2023 to 70.24 kobo in 2024.

These numbers are nothing short of impressive for a bank that began operations in 2003 and prides itself on breaking even within its first three years of existence. But while profit and EPS growth are eye-catching, there’s something even more intriguing about the bank’s report—its ownership structure and its loans to related parties.

Jaiz Bank’s Financial Performance (2023 vs 2024)

Who Really Owns Jaiz Bank? The 80.44% Club

As of December 31, 2024, about 80.44% of Jaiz Bank’s shares (out of 44,589,410,332 total shares) are held by just seven shareholders. Here’s the breakdown:

  • Alh. (Dr) Muhammadu Indimi – 29.36%
  • Dantata Aminu Alhassan – 11.44%
  • Dantata Investment & Securities Ltd – 7.97%
  • Alh. (Dr) Umaru Abdul Mutallab – 10.01%
  • Althani Investment Ltd – 9.19%
  • Dangote Industries Ltd – 6.85%
  • Islamic Development Bank – 5.62%

Jaiz Bank’s Major Shareholders (2024)

Although, ownership of publicly quoted companies by fewer numbers of shareholders (i.e., less than ten shareholders) is not unusual in Nigeria. Many publicly traded companies tend to have a small group of powerful shareholders who also double as directors. But that of Jaiz Bank Plc of more than 80% of its shareholding in the hands of just seven is in the top echelon!

Read also: Maximize Your Earnings: Non-Taxable Income Explained

The Most Interesting Part: Loans to Related Parties

Beyond the ownership structure, the 2024 report also highlights that some of these major shareholders and directors—or businesses linked to them—are also among the bank’s key borrowers. In simpler terms, some of the people who own and run the bank have also borrowed significant sums from it with their loans sitting in various stages of repayment.

Now, you might ask, “So what if the shareholders or directors borrow from their own bank?” The answer is simple: It’s a potential conflict of interest. In theory, loans to insiders should be subject to the same rigorous credit risk assessment as loans to outsiders. However, in many cases, related-party loans tend to come with more lenient terms, which could put depositors' funds at risk if not properly managed.

SHAREHOLDERS/DIRECTORS LOANS WITH JAIZ BANK PLC AS OF DECEMBER 31, 2024

The Big Questions Investors Should Ask

If you’re a Jaiz Bank shareholder, or thinking of investing in the bank, these are some of the important questions you should consider:

  1. Are these related-party loans properly disclosed and transparent?
    • Does the bank provide detailed information on the size, terms, and status of these loans?
  2. Are the loans performing well?
    • If these loans are being repaid on time and not classified as bad debts, then they might not be a problem. But if they’re not performing, that’s a red flag.
  3. What’s the level of regulatory oversight?
    • The CBN (Central Bank of Nigeria) has strict rules on related-party transactions. Is Jaiz Bank complying?
  4. Are these loans concentrated among a few individuals?
    • If a small number of insiders control a large chunk of the loan book, it could pose a risk to the bank’s financial stability.

Final Thoughts: What Should Shareholders Do?

Jaiz Bank’s 2024 financials paint the picture of a growing, profitable institution with strong earnings and increasing market confidence. However, the high concentration of ownership and the loans to related parties raise questions that investors should not ignore.

If you’re a current shareholder, it’s worth monitoring how these loans perform over time. If you’re a potential investor, take note of the bank’s governance structure and its risk management approach before making a decision.

For now, Jaiz Bank is doing well, but as with any investment, it pays to dig deeper beyond the profit numbers.

💬 What do you think about Jaiz Bank’s 2024 financial report? Are you concerned about the loans to insiders? Let’s discuss in the comments!

 

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