TAJBank Limited, Nigeria’s fast-growing and technology-driven non-interest banking services provider, has set a new record in the nation’s banking system with the payment of dividends to its shareholders in just three years of its operations.
It would be recalled that TAJBank made history early this year as the first corporate entity in Nigeria’s history to list Sukuk Bond on the Nigerian Exchange Limited (NGX) after the successful issuance.
Available data on the banking industry’s audited financial reports indicated that no bank had achieved such a remarkable feat in the over 100 years of the sector’s history.
Addressing the shareholders at the meeting, the board chairman, Alhaji Tanko Isiaku Gwamna, recounted the global economic whirlwinds in the past two years as well as the macroeconomic developments in the nation’s economic space, especially the surging inflation rate, with the attendant negative impacts on businesses.
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Gwamna maintained that despite the inclement operating environment, the board and management of the bank were able, through innovation and proactive strategies, to sustain TAJBank on the path of sustainable growth and financial stability for the benefits of the shareholders and Nigeria’s economy.
On the dividend issue, he said: “On behalf of the board, I am pleased to inform our shareholders that we have recommended a scrip dividend payment of 1 share for every 10 shares, subject to shareholders’ approval. We remain committed to promoting business expansion and success while making sure that a sizeable amount of our profits is set aside for you.”
In his report, the bank’s Managing Director/CEO, Mr. Hamid Joda, described the FY 2022 as a significant milestone in the journey of the non-interest lender despite the headwinds that characterised the operating environment as the management was able to deliver on key strategic goals through relentless execution, backed by a positive culture and delivery on high-impact projects.
On the bank’s financial performance in FY 2022, Joda reported that TAJBank recorded remarkable growth across key indices during the year as its balance sheet grew by over 93% from N110 billion recorded in FY 2021 to N212 billion while its Profit Before Tax (PBT) also surged from N1.6 billion in FY 2021 to N5.081 billion in 2022 financial year.
He also told the excited shareholders that the bank’s earnings per share grew by 138% to N31.27 kobo in FY 2022 compared to N13.11 kobo recorded in FY 2021.
On the plans to further grow the bank in the years ahead, Joda, the award-winning banker, said: “In our relentless effort to promote non-interest products and modes of banking nationwide, the board and management of TAJBank have set key objectives for the year 2023 and beyond.
“We plan to open 110 branches/business offices across state capitals/major commercial centres before 2024 and to offer non-interest banking products and services to underserved markets; to grow our agency network to 100,000 active agents by 2025 thereby reducing the financial exclusion rate; to grow our customer base to at least four million by 2027; and to achieve a minimum customer satisfaction score of 85%”, he added.
Speaking to journalists shortly after the AGM, a leading financial expert and an Independent Non-Executive Director of the bank, Alhaji Tata Shekaru Omar, lauded the board and management for innovatively positioning TAJBank at the leading edge of competition in the nation’s increasingly dynamic financial services market.
He said: “TAJBank is just barely four years of age and that it was able to make profit in its first year of operation is great and cheery news for all its stakeholders. I want to say kudos to the MD and the entire team for such a feat, especially that the bank is now giving out dividends to shareholders.”