TAJBank Limited, a non-interest banking services provider in Nigeria, has achieved a significant milestone in the country’s banking system by paying dividends to its shareholders within just three years of operation.
This accomplishment sets a new record in the banking industry, as no other bank had achieved this feat in over 100 years.
Earlier this year, TAJBank made history by becoming the first corporate entity in Nigeria to list Sukuk Bond on the Nigerian Exchange Limited (NGX) after a successful issuance.
During the shareholders’ meeting, Alhaji Tanko Isiaku Gwamna, the board chairman, acknowledged the challenging economic conditions, including surging inflation rates, which negatively impacted businesses.
However, he highlighted that through innovation and proactive strategies, the bank’s board and management were able to ensure sustainable growth and financial stability for the benefit of the shareholders and Nigeria’s economy.
Regarding dividends, Gwamna stated that the board recommended a scrip dividend payment of 1 share for every 10 shares, subject to shareholders’ approval. He emphasized the bank’s commitment to promoting business expansion and success while allocating a significant portion of profits to shareholders.
Mr. Hamid Joda, the Managing Director/CEO of TAJBank, reported that the financial year 2022 marked a significant milestone for the non-interest lender. Despite the challenging operating environment, the bank achieved key strategic goals through relentless execution, a positive culture, and high-impact projects.
TAJBank’s balance sheet grew by over 93%, from N110 billion in FY 2021 to N212 billion, and its Profit Before Tax (PBT) surged from N1.6 billion to N5.081 billion in the 2022 financial year. Earnings per share also grew by 138% to N31.27 kobo compared to N13.11 kobo in the previous year.
Looking ahead, Joda outlined the bank’s plans for further growth. TAJBank aims to open 110 branches/business offices across state capitals and major commercial centers before 2024.
The bank also plans to offer non-interest banking products and services to underserved markets, expand its agency network to 100,000 active agents by 2025 to reduce the financial exclusion rate, grow its customer base to at least four million by 2027, and achieve a minimum customer satisfaction score of 85%.
Alhaji Tata Shekaru Omar, an Independent Non-Executive Director of TAJBank and a leading financial expert, praised the board and management for positioning the bank at the forefront of competition in Nigeria’s dynamic financial services market.
He commended the bank for achieving profitability in its first year of operation and expressed appreciation for the distribution of dividends to shareholders.
Overall, TAJBank’s swift payment of dividends and its strong financial performance demonstrate its commitment to sustainable growth and value creation for its shareholders in the Nigerian banking industry
