JAIZ BANK : QUARTER 3 - FINANCIAL STATEMENT FOR 2023

CONTENTS

Introduction	2
Directors, Officers & Professional Advisers	3
Certification Pursuant to Section 60(2) of Investment & Securities Act No. 29 of 2007	4
Statement of Financial Position	6
Statement of Profit or Loss and Other Comprehensive Income	7
Statement of Changes in Equity	8
Statement of Cash flows	9
Notes to Financial Statements	10

1

INTR ODUCTION

Jaiz Banks unaudited Financial Statements for the period ended 30 September, 2023 comply with the applicable legal requirements of the Securities and Exchange Commission regarding interim Financial Statements. These financial statements contain extract of the unaudited financial statements prepared in accordance with IAS 34 Interim Financial Reporting, its

interpretation issued by the International Accounting Standards Board and adopted by the Financial Reporting Council of Nigeria.

2

DIRECTORS, OFFICERS

& PROFESSIONAL ADVISERS

Directors

	Alh. Mohammed Mustapha Bintube	-	Chairman
	Alh. Musbahu Muhammed Bashir	-	Non-Executive Director
	Alh. (Dr.) Aminu Alhassan Dantata, CON	-	Non-Executive Director
	Alh. Mukhtar Danladi Hanga	-	Non-Executive Director
	H.R.H. Engr. Bello Muhammad Sani, OON	-	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
	Hadi Muhammad Abdul Mutallab	-	Non-Executive Director
	Alh. Mamun Ibrahim Maude	-	Non-Executive Director
	Mrs.Aisha Waziri Umar	-	Independent Director
	Dr.Abdullateef Bello	-	Independent Director
	Mallam Ahmed Alhaji Hassan	-	Ag. Managing Director/CEO
	Mr.AbdulFattah Olanrewaju Amoo, FCA	-	Executive Director Business Development , South
	Alhassan Abdulkarim	-	Executive Director, Business Development, North
		-

Company Secretary	Registered Office:
Mohammed Shehu	Jaiz Bank PLC
FRC/2017/NBA/00000016416
Jaiz House
Plot 1073 J.S Tarka Street,
Plot 1073 J. S Tarka Street
Garki Area 3, Abuja.
Garki Area 3, Abuja.

Registrar and Transfer Office:

Independent Auditor

Africa Prudential Plc.	Delloite & Touché
(Formerly UBA Registrars Plc.)	Civic Towers
220B Ikorodu Road, Lagos.	Plot GA1 Ozumba Mbadiwe Avenue
Tax Advisors	Lagos

Oladele Konsulting

(Chartered Tax Practitioner & Management Consultants)

Suite C11 Othini Plaza, Plot 1528, Nouakchott Street

Wuse Zone 1, Abuja.

3

CERTIFICATION PURSUANT TO SECTION 60(2) OF INVESTMENT & SECURITIES ACT

We the undersigned hereby certify the following with regards to our financial report for the period ended 30 September, 2023 that;

1. We have reviewed the report and to the best of our knowledge, the report does not contain;

1. Any untrue statement of a material fact, or

1. Omit to state a material fact which would make the statements misleading in the light of the circumstances under which such statements were made;

1. To the best of our knowledge, the financial statements and other financial information included in the report fairly present in all material respects the financial condition and results of operations of the Company as of, and the periods presented in the report.
2. We;
3. 1. Are responsible for establishing and maintaining internal controls;
   2. Have evaluated the effectiveness of the company's internal controls as of the date with 90 days prior to the reports;

1. Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as that date;

1. We have disclosed to the audit committee;

1. All significant deficiencies in the design or operation of internal controls which would adversely affect the company's ability to record, process, summarize and report financial data and have identified for the company's auditors any material weakness in internal controls, and

1. Any fraud whether or not material, that involve management or other employees who have significant role in the company's internal controls;

1. We have identified in the report whether or not there was significant changes in the internal controls or other factors that could significantly affect internal controls subsequent to the date of our evaluation, including any corrective actions with regards to significant deficiencies and material weakness.

Ahmed A. Hassan , FCA	Oseni K Bello
Ag. Managing Director/CEO	Ag. Chief Financial Officer
FRC/2013/ICAN/000000104528	FRC/2013/ICAN/000000002476

4

5

Statement of Financial Position

As at 30 September, 2023
	Notes	2023	2022
Assets		N'000	N'000
Cash and balances with Central Bank of Nigeria	3	140,510,942	92,983,775
Due from banks and other financial institutions	4	52,563,553	24,098,813
Investment in sukuk	5(i)	132,498,550	75,654,990
Interbank Murabaha	5(ii)	9,002,041	-
Financing Assets(net)	6	164,751,185	136,976,580
Inventory Financing(net)	7	29,339,813	36,602,296
Property and Equipment (net)	8	11,035,349	8,803,174
Leasehold improvement (net)	9	63,846	45,878
Intangible assets (net)	10	573,425	624,673
Other assets	11	3,949,524	2,281,815
Deferred tax asset		1,747,460	1,747,460
Total assets		546,035,690	379,819,455
Liabilities
Customer current deposits	12a	201,518,416	140,814,965
Onward financing	13	43,747,353	32,784,097
Other liabilities	14	68,176,800	25,374,271
Tax payable		446,412	398,655
Total liabilities		313,888,981	199,371,989
Equity of investment account holders
Customers' unrestricted investment accounts	12b	204,068,968	150,642,667
Total equity of investment account holders		204,068,968	150,642,667
Owners' equity
Share capital	15	17,270,586	17,270,586
Share premium	16	1,348,446	1,348,446
Retained earnings	17	557,903	2,284,961
Risk regulatory reserve	18	2,554,328	2,554,328
Statutory reserve	19	5,340,854	5,340,854
Other reserves	20	1,005,623	1,005,623
Total Owner's Equity		28,077,741	29,804,799
Total equity and liabilities		546,035,690	379,819,455

The accompanying notes form an integral part of these financial statements.

Signed on behalf of the Board of Directors on 30th October 2023.

Ahmed A. Hassan, FCA	Oseni K Bello
Ag.Managing Director/CEO	Ag. Chief Finance Officer
FRC/2013/ICAN/000000104528	FRC/2013/ICAN/00000002476

Statement of Profit or Loss and Other

Comprehensive Income

	For the period ended 30 September, 2023				3 Month	3 Month
				Ended	Ended
			SEPT	SEPT	SEPT	SEPT	Dec
			2023	2022	2023	2022	2022
		Notes	N'000	N'000	N'000	N'000	N'000
	Income:		19,335,484	15,410,029		5,450,866
	Income from financing contracts	22	6,550,679	21,588,665
	Income from investment activities	23	11,765,652	6,971,274	4,205,361	2,722,888	9,861,802
	Gross income from financing & Investment transactions	31,101,136	22,381,303	10,756,040	8,173,754	31,450,467
	Impairment (charges)	32	(2,888,628)	(2,993,821)	(962,876)	(993,821)	(3,888,913)
	Net Income after provisions		28,212,508	19,387,482	9,793,164	7,179,933	27,561,554
	Return to equity investment accountholder	25(a)	(7,500,165)	(4,710,573)	(2,599,622)	(1,823,633)	(6,905,436)
	Bank's share as equity investor/ mudarib		20,712,343	14,676,909	7,193,543	5,356,300	20,656,119
	Fees and commission	26	1,781,527	1,027,923	870,539	365,128	1,638,830
			22,493,870	15,704,832	8,064,082	5,721,428	22,294,948
	Other Income
	Other operating income	27	246,184	326,571	166,542	2,917	340,087
	Unrealised exchange loss	28	(84,031)	(64,599)	(26,274)	(4,915)	(142,998)
	Total Income		22,656,023	15,966,805	8,256,897	5,729,259	22,492,037
	Expenses:
	Staff costs	29	7,068,203	6,168,434	2,584,420	2,065,570	8,100,246
	Depreciation and amortisation	30	984,983	863,449	350,071	320,380	1,153,906
	Operating expenses	31(I)	7,923,195	5,090,023	2,571,599	1,962,355	6,605,150
	Total expenses		15,976,382	12,121,986	5,506,090	4,348,305	15,859,302
	Profit before tax		6,679,641	3,844,889	2,750,808	1,380,954	6,632,734
	Income tax credit/(expense)		(267,186)	(576,651)	(90,629)	(450,081)	248,543
	Profit for the period		6,412,455	3,268,248	2,660,171	930,873	6,881,277
	Other Comprehensive income
	Foreign currency translation difference		-	-	-	-	-
	Total comprehensive income for the period		6,412,455	3,268,248	2,660,179	930,873	6,881,277
	Earnings per share
	Basic and diluted Earnings per share (kobo)		18.56 kobo	9.46 kobo	6.30 kobo	2.68 kobo	19.92 kobo

7

8

31 DECEMBER 2022

		Share	Share	Retained	Risk	CBN	Other	Statutory	Foreign	Total
		Capital	Premium	Earnings	Regulatory	(AGSMEIS)	Comp	Reserve	Currency
						Reserve	Reserve	income		Translation
					N'000	N'000	N'000			Reserve	N'000
	Balance at January 2022	N'000	N'000	N'000	N'000	N'000
	17,270,586	1,348,446	(680,248)	2,428,354	549,246	112,313	3,276,471		24,305,169
	Profit for the period		-	-	6,881,277	-	-	-	-		6,881,277
	Total comprehensive income for the period	-	-	6,881,277	-	-	-	-	-	6,881,277
	Transfer to risk regulatory reserve				(125,974)	125,974	-	-	-	-	-
	Transfer to statutory reserve		-	-	(2,064,383)	-	-	-	2,064,383	-	-
	Transfer to AGSMEIS		-	-	(344,064)	-	344,064	-	-	-	-
	Dividend Paid		-	-	(1,381,647)	-	-	-	-	-	(1,381,647)
	Balance as At 31 December 2022	17,270,586	1,348,446	2,284,961	2,554,328	893,310	112,313	5,340,854	- 29,804,799
				30 SEPTEMBER 2023
		Share	Share	Retained	Risk	CBN	Other	Statutory	Foreign	Total
		Capital	Premium	Earnings	Regulatory	(AGSMEIS)	Comp	Reserve	Currency
						Reserve	Reserve	income		Translation
										Reserve
		N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000	N'000
	Balance at 1January 2023	17,270,586	1,348,446	2,284,961	2,554,328	893,310	112,313	5,340,854	-	29,804,799
	Profit for the period		-	-	-	-	-	-	-		-
	Total comprehensive income for the period	-	-	-	-	-	-	-	-	-
	Transfer to risk regulatory reserve				-	-	-	-	-	-	-
	Transfer to statutory reserve		-	-	-	-	-	-	-	-	-
	Transfer to AGSMEIS		-	-	-	-	-	-	-	-	-
	Dividend Paid		-	-	(1,727,058)	-	-	-	-	-	(1,727,058)
	Balance as At end of period	17,270,586	1,348,446	557,903	2,554,328	893,310	112,313	5,340,854	-	29,804,799

Statutory Reserve

Nigerian banking regulations require Banks to make an annual appropriation to a stipulated to a statutory reserve.As stipulated by section 15(1) of the Financial Institutions Act of 2020, an appropriation of 30% of profit after tax is made if the statutory reserve is less than the paid up share capital and 15% of profit after tax if the statutory reserve is greater than the paid up capital.

Non Distributable Regulatory Reserve

This is a reserve created by comparing impairment of risk assets under IFRS and provisions for risk assets using CBN Prudential Guidelines.

Where the impairment amount under IFRS is lower than the provisions amount under Prudential Guidelines, the IFRS impairment figure is used in the the account. However, the difference between the IFRS impairment and Prudential guidelines provisioning is charged to the retained earnings and transferred to a non distributable reserve.

Statement of Changes in Equity

As at 30 September, 2023

Statement of Cashflows

As at 30 September, 2023
	2023	2022
	N'000	N'000
Cash flows from operating activities
Profit for the period	6,412,455	6,881,277
Adjustments for non -cash items:
Depreciation	886,059	994,867
Amortisation of intangible asset	80,286	127,615
Amortisation of leasehold	18,641	31,425
Amortisation of right of use assets	330,118	477,687
Impairment on financing asset	2,638,878	3,450,777
Impairment on other Asset	249,750	435,719
Income tax expense	(267,186)	(248,543)
Net cash flows before changes in working capital	10,616,185	12,150,825
Working capital movement:
Murabaha receivables	(13,277,396)	(17,879,312)
Investment in musharaka	14,380	18,357
Bai Muajjal	148,278	(374,474)
Istisna	(5,634,954)	(2,824,708)
Ijara rental receivables	11,178,556	(5,464,321)
Qard hassan	63,936	(72,037)
Investment in Salam	(21,311)	(150,918)
Interbank Murabaha	(9,002,041)	-
Investment in properties	-	-
Investment in trading assets	(6,862,483)	16,226,938
Other asset	(2,247,578)	250,461
Customers' current account	60,703,450	29,255,531
Other financing	10,963,256	1,247,606
Other liabilities	36,657,259	11,650,190
Tax paid	(47,757)	(472,612)
Net cash provided by (used in) operating activities	(84,320,103)	11,107,650
Investing activities
Investment in Sukuk	(56,843,560)	(12,181,751)
Purchase of property, plant & equipment	(3,1118,234)	(3,180,586)
Proceed from disposal of property, plant & equipment	-	13,676
Improvement on leasehold properties	(17,967)	(24,724)
Purchase of intangible assets	(47,676)	(177,448)
Net cash provided by/(used in) Investing activities	(60,027,438)	(15,550,834)
Financing activities	-
Distribution to charity	(288)
Customers investment accounts	53,426,301	53,113,492
Dividends paid to owners	(1,727,058)	(1,381,650)
Net cash provided by/(used in) financing activities	51,699,243	51,731,554
Increase/(decrease) In cash and cash equivalents	75,991,908	47,288,371
Cash and cash equivalents at beginning of period	117,082,587	69,794,217
Cash and cash equivalents At 30th June	193,074,496	117,082,587
	9