TAJBank Limited, a prominent player in Nigeria’s non-interest banking sector, has showcased remarkable financial performance in the fiscal year 2024, marked by significant growth across key indicators. The bank’s total assets surged by an impressive 84%, reaching N953.10 billion compared to N518.33 billion in 2023. This substantial increase underscores the bank’s expanding footprint and its success in attracting and managing funds within the non-interest banking framework. Alongside asset growth, the bank’s deposit base witnessed a remarkable 89% expansion, reaching N696.34 billion from N369.33 billion in the previous year. This surge in deposits indicates growing customer confidence in TAJBank’s services and its ability to provide Sharia-compliant financial solutions.
The bank’s financial strength is further reflected in its robust earnings performance. Gross earnings soared by 72% to N467.38 billion from N271.92 billion in 2023, demonstrating the effectiveness of the bank’s revenue generation strategies. Profit before tax also saw a significant increase of 61%, reaching N18.2 billion compared to N11.3 billion in the preceding year. This enhanced profitability positions TAJBank for further investments in growth initiatives and strengthens its ability to deliver value to stakeholders. The bank’s ability to achieve such impressive financial results amid prevailing macroeconomic challenges is a testament to its resilient business model and strategic decision-making.
A key highlight of TAJBank’s 2024 performance is the dividend payout of 20 kobo per share to its shareholders. This marks the bank’s third dividend distribution in just five years of operation, a remarkable achievement that underscores its commitment to rewarding investors. Significantly, the dividend payout represents one of the highest dividend-to-share-value ratios among banks in Nigeria, further highlighting the bank’s dedication to delivering exceptional returns to its shareholders. This consistent dividend distribution policy reinforces investor confidence and positions TAJBank as an attractive investment option within the Nigerian banking landscape.
The bank’s leadership attributes the strong performance to a combination of proactive strategies, innovative service delivery, and a steadfast focus on prioritizing investor interests. Mr. Hamid Joda, the Founder and Chief Executive Officer of TAJBank, emphasized the importance of investor confidence in driving the bank’s success within the non-interest banking sector. He underscored the bank’s commitment to sustaining its leadership position and assured investors of continued prioritization of their interests. This commitment to shareholder value is a cornerstone of TAJBank’s corporate strategy and plays a vital role in attracting and retaining investors.
Mr. Sherif Idi, Co-Founder and Executive Director, echoed the CEO’s sentiments, highlighting the historic significance of the third dividend payment within five years. He emphasized the bank’s dedication to serving the interests of shareholders, customers, and the broader public. Mr. Idi’s remarks underscore the bank’s commitment to ethical and responsible business practices, aligning its operations with the principles of Islamic finance. He further expressed gratitude to the shareholders for their contributions to the bank’s growth and encouraged them to advocate for further investment in TAJBank, emphasizing the sustained benefits of such engagement.
In a further demonstration of its commitment to growth and expansion, TAJBank recently finalized the completion agreement for the second tranche of its N100 billion Mudarabah Sukuk bond program, amounting to N20 billion. This strategic move will provide the bank with additional capital to fuel its growth trajectory and further expand its operations within the non-interest banking market. The successful issuance of the Sukuk bond reflects investor confidence in TAJBank’s future prospects and underscores the growing appeal of Islamic finance instruments in Nigeria’s financial landscape. This capital injection will enable TAJBank to pursue new investment opportunities, strengthen its technological infrastructure, and further enhance its product offerings, ultimately contributing to its continued success and leadership within the non-interest banking sector.
