Jaiz Bank PLC Informations1 · Standards, the Financial Accounting Standards issued by AAOIFI, the Financial Reporting Council ... Investment in Istisna 8 2,282,200 1,335,361

JAIZ BANK PLC

Index Pages

Statement of Directors’ Responsibilities in Relation to the Financial Statements 1

for financial year ended September 30, 2018

Statement of Financial Position 2

Statement of Profit or Loss and Other Comprehensive Income 3

Statement of Changes in Equity 4

Statement of Cash Flows 5

Notes to the Financial Statements

INTRODUCTION

Jaiz Bank PLC Unaudited 9 months Financial Statement as at 30th, September 2018 complies with the applicable legal requirements of the Nigerian Securities and Exchange Commission regarding interim financial statements.

These financial statements are in accordance to the standards applicable to Islamic Banking Operations and procedures as well as IAS 34 ‘Interim Financial Reporting’ its interpretation issued by the International Accounting Standards and adopted by the Financial Reporting Council of Nigeria.

Statement of Directors’ Responsibilities in Relation to the Financial Statements for financial year ended September 30, 2018

The Directors accept responsibility for the preparation of the financial statements that give a true and fair view in accordance with the requirements of the International Financial Reporting Standards, the Financial Accounting Standards issued by AAOIFI, the Financial Reporting Council of Nigeria Act 2011, the Banks and Other Financial Institutions Act, CAP B3, LFN 2004, and relevant Central Bank of Nigeria regulations.

The Directors further accept responsibility for maintaining adequate accounting records as required by the Companies and Allied Matters Act of Nigeria and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error.

Going Concern: The Directors have made assessment of the Company’s ability to continue as a going concern and have no reason to believe that the Bank will not remain a going concern in the years ahead. Resulting from the above, the directors have a reasonable expectation that the company has adequate resources to continue operations for the foreseeable future. Thus, directors continued the adoption of the going concern basis of accounting in preparing the annual financial statements. Board Resolution: At the Meeting of the Board of Directors of the Bank held on Oct 18, 2018 at the Bank’s Board Room, Kano House Plot 73, Ralph Shodeinde Street, Central Business District Abuja, the following resolution was proposed and duly passed:

“That the Bank’s Un-Audited 9 months Financial Statement for the period ended September 30, 2018 be and is hereby approved.

SIGNED ON BEHALF OF THE DIRECTORS BY:

Hassan Usman, FCA Abdufattah O. Amoo, FCA Managing Director/CEO Chief Financial Officer FRC/2013/ICAN/0000003984 FRC/2018/ICAN/00000017779

CERTIFICATION PURSUANT TO SECTION 60(2) OF INVESTMENT & SECURITIES ACT NO. 29 OF 2007

We the undersigned hereby certifies the following with regards to our financial report for the period ended 30th September 2018 that;

(a) We have reviewed the report;

(b) To the best of our knowledge, the report does not contain;

(i)Any untrue statement of a material fact, or

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

(c)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.

(d)We;

(i)Are responsible for establishing and maintaining internal controls;

(ii)Have designed such internal controls to ensure that materials information relating to the company and its consolidated subsidiary is made known to such officers by others within those entities particularly during the period in which the periodic reports are being prepared.

(iii)Have evaluated the effectiveness of the company's internal controls as of the date with 90 days prior to the reports;

(iv)Have presented in the report our conclusions about the effectiveness of our internal controls based on our evaluation as that date;

(e) We have disclosed to the audit committee;

(i)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

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

(f) 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 or our evaluation, including any corrective actions with regards to significant deficiencies and material weakness.

Hassan Usman, FCA Abdufattah O. Amoo, FCA Managing Director/CEO Chief Financial Officer FRC/2013/ICAN/0000003984 FRC/2018/ICAN/00000017779

JAIZ BANKSTATEMENT OF FINANCIAL POSITIONAS AT 30 SEPTEMBER 2018

9 Months 12 Months September-18 December-17

Notes N'000 N'000AssetsCash and Balance with Central Bank of Nigeria 3 25,691,738 23,909,987 Due from Banks and Financial Institution 4 10,357,671 5,484,759 InterBank Murabaha 5A 513,562 - Total Sukuk Investment 5B 9,722,534 6,119,300 Investment in Musharaka 6 1,172,282 1,200,000 Murabaha Recievables 7a 23,119,440 22,677,161 Investment in Istisna 8 2,282,200 1,335,361 Investment in Ijara Asset 9 14,869,245 15,598,117 Investment in Qard Hassan 10 114,488 149,082 Investment in Asset Held for Sale 11 3,795,431 3,670,774 Property, Plant and Equipment 12 2,230,795 2,123,997 Leasehold Improvement 13 36,172 34,931 Intangible Assets 14 356,570 340,286 Other Assets 15 5,599,856 4,668,853 Total Assets 99,861,984 87,312,609

Liabilities

Customer Current Deposit (17a) 33,248,736 33,706,359 Other Liabilities 18b 13,694,163 5,367,886 Tax payable 16a 36,625 135,677 Deferred tax 21 14,641 14,641 Total liabilities 46,994,165 39,224,563

Equity of Investment Account HoldersCustomers' Unrestricted Investment Accounts (17b) 36,194,415 32,054,393 Mudaraba Term Deposit (17c) 2,789,550 2,354,505 Total Equity of Investment Account Holders 38,983,965 34,408,898 Owners' Equity

Share Capital 19 14,732,125 14,732,125 Share Premium 20 627,365 627,365 Retained Earnings 21 (4,039,601) (4,244,308)Risk Regulatory reserve 22 2,267,029 2,267,029 Statutory Reserve 22i 254,516 254,516 Agric-Business/ Small and Medium Enterprise Investment Scheme 22ii 42,420 42,420 Total Equity 13,883,854 13,679,148

Total Equity and Liabilities 99,861,984 87,312,609

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JAIZ BANKSTATEMENT OF PROFIT OR LOSSFOR NINE MONTHS ENDED 30 SEPTEMBER 2018

9 Months Ended 30 Sept 2018

3 Months Ended 30 Sept

2018



Notes N'000 N'000 N'000 N'000Income:Income from Financing Contracts 23 4,613,927 1,524,808 4,541,304 1,587,953 Income from Investment Activities 24 890,502 290,715 424,089 130,740 Gross Income from fiancing & Investment Contracts 5,504,429 1,815,523 4,965,393 1,718,693

Return on Equity of Investment Account Holders 25(i) (1,476,306) (467,151) (919,288) (332,834)Bank's share as a Mudarib/Equity investor 25(ii) 4,028,123 1,348,372 4,046,105 1,385,859 Impairment Charges against non-performing Financing and Investment 32 (100,000) (30,000) (230,000) (60,000)Net Spread After Provision 3,928,123 1,318,372 3,816,105 1,325,859

Fee and commisssion 26 988,800 350,469 817,182 226,795 Other Operating Income 27 224,141 80,821 110,019 40,000 Non Trading Exchange (Loss)/Gain 28 - - 59,298 59,298 Total Income 5,141,064 1,749,662 4,802,604 1,651,952

Expenses:Staff costs 29 1,998,391 726,377 1,713,237 606,285 Depreciation and Amortisation 30 434,153 150,615 400,581 123,158 Other Expenses 31 2,467,188 862,553 1,909,091 683,078 Total Expenses 4,899,732 1,739,545 4,022,909 1,412,521

Operating Profit/(Loss) 241,332 10,117 779,695 239,431 Income Tax Expenses (36,625) (1,535) (118,328) (36,337)Profit/(Loss) for the Year after Tax 204,707 8,582 661,367 239,431

Other compreehensive income:Other comprehensive income for the year, net of tax - - - -

Total comprehensive income for the year 204,707 8,582 661,367 239,431

Basic Earnings per share (kobo) 0.82 0.03 2.65 0.81

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JAIZ BANKSTATEMENT OF CHANGE IN EQUITYFOR NINE MONTHS ENDED 30 SEPTEMBER 2018

Share Capital Share

Premium Retained Earnings

Risk Regulatory

Reserve CBN(AGSMEIS)

Reserve Statutory

Reserve Total N'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2018 14,732,125 627,365 (4,244,308) 2,267,029 42,420 254,516 13,679,147 Issued during the year - - - - - - - CBN Provission (Due from Shareholders) - - - - - - - Risk Regulatory Reserve Provision - - - - - Transfer to Risk Regulatory Reserve - - - - - - - Prior year adjusments - - - - - - - Profit for the year - - 204,707 - - - 204,707 Balance at 31 December 2018 14,732,125 627,365 (4,039,601) 2,267,029 42,420 254,516 13,883,854

Share Capital Share

Premium Retained Earnings

Risk Regulatory

Reserve CBN Intervention Statutory

Reserve Total N'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2017 14,732,125 627,365 (2,103,857) 1,360,774 (15,564) 93,381 14,694,224 Issued during the year 0 0 0 0 - 0 - CBN Provission (Due from Shareholders) 0 0 0 0 - 0 - Risk Regulatory Reserve Provision 0 0 0 - - Transfer to Risk Regulatory Reserve 0 0 0 0 - 0 - Prior year adjusments 0 0 0 0 0 0 - Transfers(Remittance to Jaiz Foundation) 0 0 (1,754) 0 - 0 (1,754)Profit for the year 0 0 779,695 0 - 0 779,695 Balance at 30 September 2017 14,732,125 627,365 (1,325,916) 1,360,774 - 15,564 93,381 15,472,165

30 September 2018

30 September 2017

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JAIZ BANKSTATEMENT OF CASH FLOWSFOR NINE MONTHS ENDED 30 SEPTEMBER 2018



Notes N'000 N'000

Cash flow from operating activitiesNet profit/(loss) before tax 241,332 779,695 Adjustments for non cash items: - Depreciation 12 372,395 340,511 Amortization of Intangible Assets 14 47,341 42,738 Amortisation of leasehold Improvement 13 14,417 17,332 Provision for financing impairment 32 100,000 230,000 Amortisation of prepaid rent 31 169,739 141,586 Non trading foreign exchange (gain)/loss - 59,298 Operating profit before changes in operating asset and liabilities 945,224 1,492,564

Working capital adjustment:Interbank Murabaha 5A (513,562) 1,011,754 Sukuk 5B (3,603,234) (4,960,663)Murabaha recievables 7a (442,279) (3,198,925)Investment in Musharaka 6 27,718 - Qard Hassan 10 34,594 25,179 Istisna 8 (1,046,839) 122,678 Ijara rental recievables 9 728,872 (574,463)Investment in trading assets 11 (124,657) (400,353)Other assets 15 (1,100,741) (1,354,927)Customers' current account (17a) (457,623) 6,251,119 Other Financing 18a - (996,635)Other liabilities 18b 8,326,277 8,301,153 Tax paid 16a (135,677) (77,087)Net cash from/(used in) operating activities 2,638,073 5,641,394

INVESTING ACTIVITIESPurchase of property, plant & equipment 12 (479,193) (940,539)Purchase of intangible assets 14 (63,625) (40,295)Improvement on leasehold properties 13 (15,658) (25,504)Net cash used in investing activities (558,476) (1,006,338)

FINANCING ACTIVITIES

Prior year adjustment 21 - (15,564)Customers investment accounts (17b) 4,575,067 4,903,971 Net cash provided by (used in) financing activities 4,575,067 4,888,407

Increase (Decrease) In Cash And Cash Equivalents 6,654,663 9,523,463 Cash and cash equivalents at beginning of year 29,394,746 20,054,759 Cash And Cash Equivalents At 31 December 36,049,409 29,578,222

The notes on pages 23 to 80 forms an integral part of these financial statements

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JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTHS ENDED 30 SEPTEMBER 2018

1 Reporting entity

2 Significant Accounting Policies

(a) Statement of Compliance with International Financial Reporting Standards

(b) Basis of Preparation, Accounting Judgments & Estimates.

i Going Concern

ii Fair Value of Unquoted Equity Securities and Investment Properties

Jaiz Bank Plc is the first fully fledged non-interest financial institution in Nigeria. The Bank commenced operation onJanuary 6th, 2012 with three branches in two states and the Federal Capital Territory.

The Financial Statement of the Bank as at 30 September 2018, is only for the Bank as it has no subsidiary and/orAssociate company.

The Bank's Corporate Headquarter address is Kano House, Plot 73, Ralph Shodeinde Street, Central Business District,Abuja Nigeria.

The financial statements have been prepared in accordance with the requirements of International Financial Reportingstandards (IFRS) as issued by International Accounting standards Board (IASB). For matters on which no IFRSstandard is applicable or IFRS conflicts with Shari'ah rules and principles, the bank uses the relevant FinancialAccounting Standard as issued by the Accounting & Auditing Organization for Islamic Financial Institutions(AAOIFI) and shariah rulings as determined by the shariah supervisory committee of the Bank.

Financial statements are to be prepared under the historical cost convention, and may be modified by their valuation of certain investment securities, property, plant and equipment. Financial statements are to be prepared mainly inaccordance with the International Financial Reporting Standards (“IFRS”) issued by the International AccountingStandards Board (“IASB”). For matters that are peculiar to Islamic Banking and Finance, the Bank shall rely on theStatement of Financial Accounting (“SFA”) and Financial Accounting Standards (“FAS”) issued by the Accountingand Auditing Organization for Islamic Financial Institutions(“AAOIFI”), Standards issued by the Islamic FinancialServices Board (“IFSB”) and Circulars issued by the Central Bank of Nigeria (“CBN”) shall also be of guidance.

The preparation of financial statements requires the use of estimates and assumptions that affect the reported amountsof assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and thereported amounts of revenues and expenses during the reporting period. Although these estimates are based on themanagement's best knowledge of current events and actions, actual results ultimately may differ from those estimates.The most significant uses of judgments and estimates are as follows:

Fair value shall be determined for each investment individually in accordance with the valuation policies of the Bank.Where the fair values of the Bank's unquoted equity securities cannot be derived from an active market, they shall bederived using a variety of valuation techniques. Judgment by management is required to establish fair values throughthe use of appropriate valuation models, consideration of comparable assets, discount rates and the assumptions usedto forecast cash flows. Investment properties and investments in real estate projects shall be carried at fair value asdetermined by independent real estate valuation experts. The determination of the fair value for such assets requiresthe use of judgment and estimates by the independent valuation experts that are based on local market conditionsexisting at the date of the statement of financial position.

The Bank's management shall be making assessment of the Bank's ability to continue as a going concern and wheresatisfied that the Bank has the resources to continue in business for the foreseeable future shall form a judgment andprepare accounting information based on that. In any situation whereby the Board of Directors is aware of anymaterial uncertainties that may cast significant doubt upon the Bank's ability to continue as a going concern such issuesshall be disclosed in the annual report.

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iii Impairment Provisions against Financing Contracts with Customers

iv Impairment of Investments at Fair Value through Equity

v Liquidity

(c) Inventory

(d) Non-Current Assets

Motor vehicle (6 years) 16.67%Furniture and fittings (5 years) 20%Equipment (5 years) 20%Computer Equipment- General (3 years) 33%Computer Equipment- Special (5 years) 20%Computer software (10 years) 10%Freehold Buildings (50 years) 2%

Leasehold building over the expected life of the leaseLeasehold improvement over the period of the lease

Asset that do not reach a limit of N25,000 (Twenty Five Thousand Naira Only) are expensed immediately in theincome statement, but capitalized if above limit.

The Bank shall manage its liquidity through consideration of the maturity profile of its assets and liabilities on dailybasis. This requires judgment when determining the maturity of assets and liabilities with no specific maturities.

Depreciation is to be provided on a straight-line basis to write off the cost of asset over their estimated useful live. Theannual rate which should be applied consistently over time are as follows:

The Bank shall review its financing contracts at each reporting date to assess whether an impairment provision shouldbe recorded in the financial statements. In particular, judgment by management is required in the estimation of theamount and timing of future cash flows when determining the level of provision required. Such estimates are based onassumptions about factors involving varying degrees of judgment and uncertainty and actual results may differresulting in future changes to the provisions. In addition to specific provisions against individually significant financingcontracts, the Bank also shall make a collective impairment provision of 1% against exposures which, although notspecifically identified as requiring a specific provision, have a greater risk of default than when originally granted. Thistakes into consideration, factors such as any deterioration in country risk, industry, and technological obsolescence, aswell as identified structural weaknesses or deterioration in cash flows.

The Bank shall treat investments carried at fair value through equity as impaired when there is a significant orprolonged decline in the fair value below their costs or where other objective evidence of impairment exists. Thedetermination of what is 'significant' or 'prolonged' requires judgment. The Bank would evaluate factors, such as thehistorical share price volatility for comparable quoted equities and future cash flows and the discount factors forcomparable unquoted equities.

Inventory of stationery and consumables held by the Bank are to be stated at the lower of cost and net realizable valuein line with IAS 2. When inventories become old or obsolete, an estimate is to be made of their net realizable value.For individually significant amounts, this estimation is to be performed on an individual basis. For amounts that arenot individually significant, collective assessment shall be made and allowance applied according to the inventory typeand degree of ageing or obsolescence based on historical selling prices.

Non-current (fixed) assets are initially recorded at cost. They are to be subsequently stated at historical cost lessdepreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable tothe acquisition of the assets.

Subsequent costs are included in the asset's carrying amount or are recognized as a separate asset, as appropriate, onlywhen it is probable that future economic benefits associated with the asset will flow to the Bank and the cost of theasset can be measured reliably. All other repairs and maintenance are charged to the income statement during thefinancial period in which they are incurred.

Construction cost in respect of offices is carried at cost as work in progress. On completion of construction, therelated amounts are transferred to the appropriate category of fixed assets. Payments in advance for items of fixedassets are included as Prepayments in Other Assets and upon delivery are reclassified as additions in the appropriatecategory of property and equipment.

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(e) Intangible Assets

(f) Financial Instruments – Initial Recognition and Subsequent Measurement

(g) Ijarah (Leasing)

(h) Murabaha Receivables from Banks

(i) Murabaha Receivables from Customers

(j) Musharaka

The Bank shall comply fully with the requirements of Sharia in recognition and measurement of Ijarah financing. Theperiodic lease rentals receivable are treated as rental income during the period they occur and charge thereon isincluded in operating expenses while initial direct cost incurred are written off to the income statement in the periodthey are incurred.

These are interbank commodity Murabaha transactions. The Bank arranges a Murabaha transaction by buying acommodity (which represents the object of the murabaha) and then resells this commodity to the beneficiary murabeh(after adding a profit margin). The sale price (cost plus the profit margin) is paid either lump sum at Maturity or ininstallments by the Murabeh over the agreed period. Murabaha receivables from banks are stated net of deferredprofits and provision for impairment, if any.

Customer Murabaha receivables consist of deferred sales transaction agreements and are stated net of deferred profits,any amounts written off and provision for impairment, if any. Promise made in the Murabaha to the purchase Ordereris obligatory upon the customer and the bank can claim damages to the exact amount of loss suffered.

Musharaka contracts represents a partnership between the Bank and a customer whereby each party contributes to thecapital in equal or varying proportions to establish a new project or share in an existing one, and whereby each of theparties becomes an owner of the capital on a permanent or declining basis and shall have a share of profits or losses.These are stated at the fair value of consideration given less any amounts written off and provision for impairment, ifany.

Amortization is recognized in the income statement on a straight line basis over the estimated useful life of thesoftware.

All financial assets and liabilities are initially recognized on the trade date, i.e. the date that the Bank becomes a party tothe contractual provisions of the instrument. The classification of financial instruments at initial recognition dependson the purpose and the management's intention for which the financial instruments were acquired and theircharacteristics. All financial instruments are measured initially at their fair value plus transaction costs, except in thecase of financial assets recorded at fair value through income statement.

Property, plant and equipment is derecognised on disposal or when no future economic benefits are expected from ituse. Gain and losses are recognised in the income statement.

Depreciation is charged when the assets are available for use irrespective of whether they are put to use. Assets that aresubject to depreciation are reviewed for impairment whenever events or changes in circumstances indicate that thecarrying amount may not be recoverable. An asset's carrying amount is written down immediately to its recoverableamount if the asset's carrying amount is greater than its estimated recoverable amount. The recoverable amount is thehigher of the asset's fair value less costs to sell and value in use.

Gains and losses on disposal are determined by comparing proceeds with carrying amount. These are included in the statement of income for the year.

Software licenses acquired by the Bank are stated at cost less accumulated amortization and accumulated impairmentloss (if any). Expenditure incurred on internally developed software is recognized as an asset when the Bank is able tocomplete the software development and use it in such a manner that it will be able to generate economic benefit to theBank, and that the cost to complete the development can reliably be measured by the Bank.

Internally developed software cost that is capitalized includes cost directly attributable to developing the software, andis amortized over the useful economic life of the software.

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(k)

(l) Impairment of Investment in Risk Assets

Profit and Principal that is outsatnding Classification Provision90 days but less than 180 days Substandard 10%180 days but less than 360 days Doubtful 50%

360 days and over Loss 100%

(m) Income Recognition

i Murabaha

ii Ijarah Muntahia Bittamleek

iii Musharaka

iv DividendsDividends from investments in equity securities are recognized when the right to receive the payment is established.

Where the income is quantifiable and contractually determined at the commencement of the contract, income isrecognized on a time-apportioned basis over the period of the contract based on the principal amounts outstanding.Accrual of income is suspended when the bank believes that the recovery of these amounts may be doubtful.

Risk assets in respect of which a previous provision was not made are written directly to the statement of income whenthey are deemed to be irrecoverable.

WakalahA contract between a Group and a customer whereby one party (the principal: the Muwakkil) appoints the other party(the agent: Wakil ) to invest certain funds according to the terms and conditions of the Wakalah for a fixed fee inaddition to any profit exceeding the expected profit as an incentives for the Wakil for the good performance. Anylosses as result of the misconduct or negligence or violation of the the terms and conditions of the Wakalah are borneby the Wakil for other wise, they are by the principal.

Assets found not to be impaired individually are assessed collectively for any impairment that has been incurred butnot identified earlier. Insignificant assets are tested for impairment collectively.Impairment loss on assets classified at amortized cost are measured as the difference between the carrying value of theasset and the present value of future cash flows discounted at the initial assets effective profit rate. Losses are

At each balance sheet date, the Bank assesses whether there is objective evidence that the financial assets are impaired.Financial assets are impaired when objective evidence demonstrates that a loss event has occurred after the initialrecognition of the asset, and that the loss event has an impact on the future cash flows of the asset that can bemeasured reliably.The Bank considers impairment both at individual asset level and also at collective level. All individually significantassets are assessed for specific impairment.

Ijarah income is recognized on a time-apportioned basis, over the lease term. Accrual of income is suspended whenthe bank believes that the recovery of these amounts may be doubtful.

Income on Musharaka Contracts is recognized when the right to receive payment is established or on distribution bythe Musharek.

When an investment is deemed not collectible, it is written off against the related provision for impairments andsubsequent recoveries are credited to the provision for loan losses in the statement of income. If the amount of the

Also, provision is determined from a specific assessment of each customer's account in accordance with the CentralBank of Nigeria's (CBN) Prudential Guidelines. A minimum general provision of 2% is made on all risk assets, which

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v Fees and Commission Income

vi Sale of Property under Development

Contract to construct a property; or

Contract for the sale of completed property

vii Non-Credit Related Fee Income

viii Foreign Incomea)b)

ix Earnings Prohibited by Shari 'a

x Service Income

xi Revenue from Sale of Goods

xii Bank's Share as a Mudarib

xiii Expense Recognitiona)

b) Return on Equity of Investment Account Holders

(n) Transactions in Foreign Currencies

i

ii

iii

Where a contract is judged to be for the construction of a property, revenue is recognized using the percentage ofcompletion method, as construction progresses. The percentage of work completed is measured based on the costs

The bank is committed to avoid recognizing any income generated from non-Islamic sources. Accordingly, all non-

The Bank earns fee and commission income from a diverse range of services it provides to its customers.

Return on equity of investment account holders is based on the income generated from jointly financed assets after

Monetary assets and liabilities denominated in foreign currencies are converted into Naira at the rate of exchangeruling at the balance sheet date. All differences are taken to the statement of income.

Revenue from rendering of services is recognized when the services are rendered.

Revenue from sales of goods is recognized when the significant risks, rewards and control of ownership of the goodshave passed to the buyer and the amount of revenue can be measured reliably.

The Bank's share as a mudarib for managing the equity of investment account holders is accrued based on the terms

Other Profit and income earned on the Bank's own funds held outside Nigeria are accounted for on receipt.

Where property is under development and agreement has been reached to sell such property when construction iscomplete, the bank considers whether the contract comprises:

Profit on these is accrued on a time-apportioned basis over the period of the contract based on the principal amountsoutstanding.

The financial statements are presented in Nigerian Naira, which is the reporting currency in line with IAS21 (Effects offoreign exchange)

Transactions in foreign currencies are recorded in the books at the rate of exchange ruling on the date of thetransactions.

Commission on negotiation of various letters of credit and overdue Profit on delayed foreign payments are accountedfor on receipt.

Profit on mudaraba payable (banks and non-banks)

This is recognized at the time the services have been performed and delivered or the transaction has been completed.

Where the contract is judged to be for the sale of a completed property, revenue is recognized when the significantrisks, rewards and control of ownership of the property are transferred to the buyer.

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iv

(o) Taxation

i Current Income Taxation

ii Deffered Taxation

(p) Investments

i Investment Securities

ii Investments at Fair Value through Statement of Income

iii Investments at Fair Value through Equity

iv Investments in Subsidiaries

Investments at fair value through equity are those which are designated as such or are not classified as carried at fairvalue through statement of income. These include investments in equity securities and managed funds.

Investments in subsidiaries are carried in the company's balance sheet at cost less provisions for impairment losses.Where, in the opinion of the Directors, there has been impairment in the value of an investment, the loss is recognized

Deferred tax assets are recognized where it is probable that future taxable profit will be available against which the

Investments at fair value through statement of income include investments designated upon initial recognition asinvestments at fair value through statement of income. Financial assets carried at fair value through statement of

Income tax is the amount of income tax payable on the taxable profit for the period determined in accordance withcurrent statutory rate. Income tax payable on profits, based on the applicable tax law, is recognized as an expense inthe period in which the related profits arise. All taxes related issues including deferred tax are treated in accordancewith IAS 12 (Income taxes).

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated into Naira usingthe exchange rates as at the dates of the initial recognition. Non-monetary items measured at fair value in a foreign

Investments classified as 'at fair value through statement of income’ are subsequently measured at fair value. Theunrealized gains and losses arising from the remeasurement to fair value are included in the consolidated statement ofincome.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amountsof assets and liabilities arising on the acquisition are treated as assets and liabilities of the foreign operations and

Provision for deferred taxation is made by the liability method and calculated at the current rate of taxation on thetemporary differences between the net book value of qualifying fixed assets and their corresponding tax written down

Investment securities are initially recognized at cost and management determines the classification at initial investment.Investments in securities are classified, measured and recognize in accordance with IAS 39 (Financial Instrumentsmeasurement and recognition).

After initial measurement, investments at fair value through equity are subsequently measured at fair value. Unrealisedgains and losses are recognised in statement of comprehensive income and then transferred to the available for salereserve in the consolidated statement of changes in equity. When the investment is disposed of or determined to beimpaired, the cumulative gain or loss, previously transferred to the available for sale, reserve is recognised in the

On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged orcredited to the statement of income.

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(q) Retirement Benefits

(r.) Provisions, Contingent Assets and Contingent Liabilities

(s) Borrowings

i Murabaha and Due to Banks

ii Murabaha and due to non-banks

(t) Fiduciary Activities

(u) Segment Reporting

Retirement benefits to employees are provided under a defined contribution scheme, which is funded by contributionfrom the bank and employees. Funding under the new scheme is 8.0% by staff and 10% by the Bank based on annual

Transactions that are not currently recognized as assets or liabilities in the balance sheet, but which nonetheless giverise to credit risks, contingencies and commitments are reported off balance sheet. Such transactions included letters Outstanding and unexpired commitments at year end in respect of these transactions are to be shown by way of note Income on off-balance sheet engagement is in form of commission and fees.Commission and fees are recognized when transactions are executed.

The Bank prepares its segment information based on geographical and business segments as primary and secondaryreporting segments, respectively in accordance with IFRS 8 (Operating segments).

The Bank has appointed the Management committee charged with the responsibility of allocating resources andassessing performance as the Chief Operating Decision Maker as required under IFRS 8. The CODM is reviewed and

A business segment is a group of assets and operations engaged in providing products or services that are subject torisks and returns that are different from those of other business segments. A geographical segment is engaged in

The Bank's liabilities in respect of the defined contribution are to be charged against the profit of the year in whichthey become payable. Payments are made to Pension Fund Administration companies, who are financially independent

Provision is recognized when the Bank has a present obligation whether legal or constructive as a result of a past eventfor which it is probable that an outflow of resources embodying economic benefits will be required to settle theobligation and the amount can be reliably measured, in accordance with the International Financial Reporting

This represents funds received from banks on the principles of murabaha contracts and are stated at fair value ofconsideration received less amounts settled.

These are stated at fair value of consideration received less amounts settled. Profit paid on borrowings is recognized inthe statement of income for the year.

The Bank acts as trustee in its capacity as a Mudarib when managing the equity of investment account holders. Equityof investment account holders is invested in murabaha and due from banks, sukuk and financing contracts with Income is allocated proportionately between equity of investment account holders and owners' equity on the basis ofthe average balances outstanding during the year and share of the funds invested. Equity and assets of restricted

7

(v) Offsetting

(w) Cash and Cash EquivalentCash comprises:i Cash in handii Balance held with Central Bank of Nigeriaiii Balance with banks in Nigeria and outside Nigeriaiv Demand deposit denominated in Niara and other foreign currencies

Cash equivalent are short term, highly liquid instruments which are:

a readily convertible into cash, whether in local and foreign currencies; andb

(x) Ordinary Share Capital

i Share Issue Costs

ii Dividend on Ordinary Shares

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares are shown inequity as a deduction, net of tax, from the proceeds.

Dividends for the year that are approved by the shareholders after the balance sheet date are dealt with in thesubsequent events note.Dividends proposed by the Directors but not yet approved by members are disclosed in the financial statements inaccordance with the requirements of the Company and Allied Matters Act 1990.

Dividends on ordinary shares are appropriated from revenue reserve in the period they are approved by the Bank'sshareholders.

so near to their maturity dates as to present insignificant risk of changes in value as a result of changes in profits rates.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legallyenforceable right or shariah requirement to set off the recognized amounts and there is an intention to settle on a net

8

JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTHS ENDED 30 SEPTEMBER 2018

9 Months 12 Months 3 Cash and Balance with Central Bank of Nigeria September-18 December-17

N'000 N'000Cash on Hand 3,517,354 2,651,233 Current account with CBN 5,145,054 8,842,420 Deposit with CBN 16,986,910 12,400,770 CBN AGSMEIS Balance 42,420 15,564 Total 25,691,738 23,909,987

9 Months 12 Months 4 Due from Banks and Financial Institution September-18 December-17

N'000 N'000Balance with banks within Nigeria:First Bank Plc 298,646 296,957

a 298,646 296,957 Balance with banks outside Nigeria:First Bank UK 6,550,525 4,778,383 Habib Bank UK - 290,182 Commerzbank AG - - Standard Chartered 3,301,546 1,025 Bank Al-Bilad 167,902 118,212 Banco De Sabadel 39,053 -

b 10,059,025 5,187,802

Total a+b 10,357,671 5,484,759

9 Months 12 Months 5A InterBank Murabaha September-18 December-17

N'000 N'000InterBank Murabaha 513,562 - InterBank Murabaha Deferred Profit - - Total 513,562 -

9 Months 12 Months 5B Total Sukuk Investment September-18 December-17

N'000 N'000Opening Balance 6,068,953 1,060,252 Addition during the year 7,954,558 5,166,305 Gross investment in Sukuk 14,023,511 6,226,557 Part Liquidation during the period (4,750,726) (157,604) Net investment in Sukuk 9,272,785 6,068,953 Sukuk Premiun 449,749 50,347 Total 9,722,534 6,119,300

Cash on hand constitutes the aggregate cash balances in the vaults of the Bank branches while deposits with the Central Bank of Nigeria represent Mandatory Reserve Deposits(as prescribed by the CBN) and are not available for use in the bank’s day–to–day operations.

The balance held with Banks outside Nigeria substantially represent the Naira equivalent of Foreign Currency balance held on benfit of Customers in respect of Letter of Credit transactions. The corresponding Liabilty is included in Margin Deposits under "Other Liabilities" (see Note 18). The amount is not available for the day to day operations of the Bank.

1

JAIZ BANKNOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTH ENDED 30 SEPTEMBER 2018

9 Months 12 Months 6 Investment in Musharaka September-18 December-17

N'000 N'000Gross Investment in Musharaka 1,172,282 1,200,000 Allowance for impairement - Total 1,172,282 1,200,000

9 Months 12 Months 7a Murabaha Recievables September-18 December-17

N'000 N'000Murabaha Retail 6,852,957 5,762,414 Murabaha Corporate 18,247,773 18,925,850 Murabaha Staff 1,558 5,799 Murabaha Related Party 26,863 24,199 Gross Recievable 25,129,151 24,718,262 Allowance for impairment (458,277) (458,277) Deffered Profit (1,551,434) (1,582,824) Total 23,119,440 22,677,161

9 Months 12 Months 7b Investment in Salam Asset September-18 December-17

N'000 N'000 Salam Corporate - 21,477 Gross Investment in Salam - 21,477 Allowance for impairement - - Deffered Profit - (1,123) Total - 21,477

9 Months 12 Months 8 Investment in Istisna September-18 December-17

N'000 N'000Istisna Recievable 2,618,466 1,599,125 Allowance for impairement (135,947) (35,948) Deffered Profit (200,319) (227,816) Total 2,282,200 1,335,361

9 Months 12 Months 9 Investment in Ijara Asset September-18 December-17

N'000 N'000Ijara wa Iqtina 11,794,911 12,593,093 Ijara home finance 22,763 23,736 Ijara Auto & Others 254 254 Ijara Others 614,991 563,193 Ijara accrued Profit 2,463,402 2,444,917 Gross investment in Ijara 14,896,321 15,625,193 Allowance for impairement (27,076) (27,076) Total 14,869,245 15,598,117

9 Months 12 Months 10 Investment in Qard Hassan September-18 December-17

N'000 N'000Balance B/F 149,082 127,674 Share loan to staffLoan to customers 15,000 94,759 Gross investment in Qard Hassan 164,082 222,433 Repaymrnts (49,594) (73,299) Allowance for impairement - (52) Total 114,488 149,082

2

9 Months 12 Months 11 Investment in Asset Held for Sale September-18 December-17

N'000 N'000Advance for LC Murabaha-in-Transit 2,016,574 1,287,288 Inventory-Murabaha Corp. Finance 1,778,857 2,383,486 Total 3,795,431 3,670,774

3

JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTHS ENDED 30TH SEPTEMBER, 2018

12 Property, Plant and Equipment

Freehold Land

Building Freehold

Office Equipment

Motor Vehicle Furnitures and

Fixtures

Computer Equipment

Fixed Assets WIP Total

Cost N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 0001 January 2018Cost 3,086 495,327 676,346 405,207 181,608 1,608,113 276,101 3,645,788 Additions/Reclassifiaction - 5,371 75,246 18,920 18,362 244,879 112,911 475,689 Disposals - - - - - - - - 30 September 2018 3,086 500,698 751,592 424,127 199,970 1,852,992 389,012 4,121,477

Accumulated depreciation1 January 2018 - 16,710 302,785 178,359 113,087 910,851 - 1,521,792 Depreciation - 95,004 46,164 20,897 209,952 - 372,395 Reclassification - - - 46 - 2,806 - 275 - - 3,505 30 September 2018 - 16,710 397,743 221,717 133,709 1,120,803 - 1,890,682

1 January 2017Cost 1,000 460,849 491,761 303,315 149,741 1,374,232 214,272 2,995,170 Additions/Reclassifiaction 2,086 34,478 184,585 101,892 31,867 233,881 61,829 650,618 Disposals - - - - - - - 31 December 2017 3,086 - 495,327 676,346 405,207 # 181,608 1,608,113 3,645,788

Accumulated depreciation1 January 2017 - - 7,520 190,067 145,065 # 86,415 675,077 1,104,144 Depreciation - 9,190 112,745 57,109 27,724 231,332 438,373 Adjustment - - (27) (23,815) # (1,052) 4,442 (20,726)Disposals - - - - - - - 31 December 2017 - - 16,710 302,785 178,359 # 113,087 910,851 1,521,791

1

Carrying Amount30 September 2018 3,086 483,988 353,849 202,410 66,261 732,189 389,012 2,230,795

31 December 2017 3,086 - 478,617 373,561 226,848 # 68,521 697,262 276,101 2,123,997

2

JAIZ BANKNOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTHS ENDED 30TH SEPTEMBER, 2018

9 Months 12 Months 13 Leasehold Improvement September-18 December-17

Cost N'000 N'000Balance at 1 January 810,819 795,549 AdjustmentsAddition 11,786 15,270 Total 822,605 810,819

AmortisationBalance at 1 January 775,888 753,114 Adjustments (3,872) (3,520)Amortisation for the year 14,417 26,294 Total 786,433 775,888

Carrying amountsTotal 36,172 34,931

9 Months 12 Months 14 Intangible Assets September-18 December-17

N'000 N'000

CostComputer

softwareComputer

softwareBalance at 1 January 593,232 563,242 Addition 63,625 29,990 Total 656,857 593,232

Amortisation and impairment lossesBalance at 1 January 252,946 195,153 Amortisation for the year 47,341 57,793 Reclassification - - Total 300,287 252,946

Carrying amountsTotal 356,570 340,286

1


15 Other Assets 9 Months 12 Months September-18 December-17

Sundry Debtor 427,696 521,593 Repossessed Property 831,513 854,513

Prepaid rent 471,847 470,044 Other prepayments 353,008 246,034 Prepaid Staff 226,019 35,132 Inventory-Cheques, Printing and ATM Card 41,570 47,760 Branch development expenditure 333,464 272,047 Account recievables 1,718,660 1,834,213 Operating Suspense 1,236,944 430,313 Interbranch 84 (1,845)

Total 5,640,806 4,709,803

Impairment of Other Assets (40,950) (40,950)Total 5,599,856 4,668,853

Movement in other assets:September-18 December-17

N'000 N'000Balance at 1 January 4,709,803 5,233,384 Charge for the year 931,002 (482,631) Impairment of Other Assets (40,950) (40,950)Total 5,599,856 4,709,803

1

JAIZ BANKNOTES TO THE FINANCIAL STATEMENTSFOR NINE MONTHS ENDED 30 SEPTEMBER 2018

16a Taxationi) Statement of Financial position September-18 December-17

N'000 N'000Balance brought forward 135,677 77,087 Tax Adjustment - - Charge for the year 36,625 135,677

172,302 212,764 Less payment for the year 135,677 (77,087) Total 36,625 135,677

ii) Income statement September-18 December-17N'000 N'000

Company income 28,530 105,688 Education tax 5,706 21,138 Information technology levy 2,389 8,852

36,625 135,677 Deferred tax expensesDeferred tax expenses(Origination/Reversal) of temporary differences) 221,214

Total 36,625 356,891

16b Deferred Tax Asset September-18 December-17N'000 N'000

Balance at 1 January - 206,573 Deferred tax expenses(Origination/Reversal) of temporary differences) (221,214) Transfer to Deferred Liability - 14,641 Total - -

(b) Deferred Tax Liability September-18 December-17N'000 N'000

Balance at 1 January 14,641 - Deferred tax expenses(Origination/Reversal) of temporary differences) - 14,641 Prior year adjustment - - Total 14,641 14,641

2


17 Due to customers September-18 December-17N'000 N'000

Analysis by type of account(17a) Current Account 33,248,736 33,706,359 (17b) Mudaraba Investment Account 36,194,415 32,054,393 (17c) Mudaraba Term deposit 2,789,550 2,354,505

Total 72,232,701 68,115,257

Analysis by type of Depositor September-18 December-17N'000 N'000

Government 551,641 9,084,326 Corporate 25,869,774 22,729,985 Individual 45,811,286 36,300,946 Total 72,232,701 68,115,257

Analysis by maturity

September-18 December-17N'000 N'000

Current Deposits 33,248,736 33,706,359 Savings Deposits 18,004,533 14,919,164 30days Deposits (JAPSA) 18,189,882 17,135,229 60days Mudaraba Term Deposit 2,789,550 2,354,505 Total 72,232,701 68,115,257

(17b) Equity of Investment Accountholders September-18 December-17N'000 N'000

Savings Account 16,511,328 13,860,996 Children saving Account 872,245 736,805 Jaiz premium Savings Account 18,189,883 17,135,229 Others including MTDs 3,410,510 2,675,868 Total 38,983,966 34,408,898

18b Other Liabilities September-18 December-17N'000 N'000

MC/Margin Deposits 9,102,661 4,076,761 Accounts Payable 186,974 84,688 Vendors payable 43,981 19,905 Other Tax Liabilities 32,015 54,007 Profit payable to Mudararaba Savings Account 63,587 47,879 e-Banking Payables 353,050 174,933 Due to Charity 2,471 - Sundry Payables 1,956,648 612,126 Accrued audit fee 19,845 15,939 Sundry Deposit 1,427,999 18,354 Other Accurals 159,301 58,831 Other Payables 345,631 204,463 Total 13,694,163 5,367,886

The Bank has introduce Mudarabah Tenored Deposits which has give customers the opportunity to choose from a basket of Return available for different tenors.

The sundry payable account include the money deposited by customers for FGN Sovereign Sukuk as at the reporting date.

All the customers deposit are analysed by maturity into Current and Savings as follows:

1


19 Owners EquityA Share capital

(i) Authorised September-18 December-17N'000 N'000

50,000,000,000 Ordinary shares of N0.50 each30 September 2018: 50,000,000,000 of N0.50 each) 25,000,000 25,000,000

Total 25,000,000 25,000,000

(ii) Issued and Fully paid Share capital September-18 December-17N'000 N'000

29,474,250,000 Ordinary shares of N0.50 each At 1 January 14,732,125 14,732,125

Total 14,732,125 14,732,125

20 Share Premium September-18 December-17N'000 N'000

Balance as at 1 January 627,365 627,365 Movement during the year - - Total 627,365 627,365

1


21 Retained Earnings September-18 December-17N'000 N'000

Balance at 1 January (4,244,308) (3,669,861)Adjustment - (1,754)Net profit for the year 204,707 537,117 Statutory Regulatory Reserve - (161,135)AGSMEIS - (42,420)Risk regulatory reserve - (906,255)Total (4,039,601) (4,244,308)

22 Risk Regulatory Reserve September-18 December-17N'000 N'000

Balance at 1 January 2,267,029 1,360,774 Adjustment against retained earnings - 906,255 Total 2,267,029 2,267,029

22i Statutory Regulatory Reserve September-18 December-17N'000 N'000

Balance at 1 January 254,516 93,381 Adjustment against retained earnings - 161,135 Total 254,516 254,516

22ii Agric-Business/Small and Medium Enterprises Investment SchemeSeptember-18 December-17

Balance at 1 January N'000 N'0002016 AGSMEIS Provision 42,420 15,564 2017 AGSMEIS Provision - 26,856 Total 42,420 42,420 The Risk Regulatory Reserve is created as required by the Central Bank of Nigeria (CBN) Prudential Guideline section 12.4(a)(i). This is a non distributable reserve which represents the difference between impairment of Risk Asset under IFRS Rules and provisioning under CBN Prudential Guidelines. There was no significant difference between the CBN recommended provision and that of IFRS requirement during the year, hence there wa no transfer.

2


23 Income from Islamic Finanace

9 Months Eneded 30 Sept 2018

3 Monts Eneded 30 Sept 2018



N'000 N'000 N'000 N'000Murabaha profit Corporate 1,805,665 609,177 1,814,132 670,241 Murabaha profit Retail 604,007 196,208 554,471 187,324 Murabaha Trade Finance 2,117 785 1,524 970 Total profit from Murabaha transactions 2,411,789 806,170 2,370,127 858,535 Ijara wa Iqtina Profit 1,700,524 536,740 1,792,516 579,392 Ijara Finance Lease Profit 61,569 19,135 74,022 23,331 Ijara profit home finance 897 292 1,024 327 Ijara Others 559 133 653 183 Total profit from Ijara transactions 1,763,549 556,300 1,868,215 603,233 Istina Profit 226,338 92,794 77,836 24,481 Salam Profit - - 1,353 1,245 Musharaka Profit 180,196 60,051 168,730 60,183 InterBank Murabaha Income 32,055 9,493 55,043 40,276 Total Income from financing 4,613,927 1,524,808 4,541,304 1,587,953

24 Income from investment activities





N'000 N'001 N'000 N'000Trading Assets & Sukuk Income 890,502 290,715 424,089 130,740 Total Investment income 890,502 290,715 424,089 130,740

25 (i). RETURN ON EQUITY OF INVESTMENT ACCOUNT HOLDERS





N'000 N'001 N'000 N'000 1,476,306 467,151 919,288 332,834

Profit from Financing Investments paid to Mudarabah Account Holders 1,476,306 467,151 919,288 332,834

(ii) Mudarib fees/ profit of Joint Investments





N'000 N'001 N'000 N'000Bank's fees as Mudarib. 2,596,349 858,752 1,767,084 563,188 Profit from the Bank's Joint Financing investments 1,431,774 489,620 2,279,021 822,671 Bank's fee as Mudarib/Profit of owned Joint Investmets 4,028,123 1,348,372 4,046,105 1,385,859

Profit paid to Unrestricted Mudarabah Account

The Bank operates the Unrestricted type of Mudaraba Investment, in which the Mudarib (the Bank) is authorized by the providers of Funds (Rabbul Mal) to invest their funds in the manner which the Mudarib deems appropriate. Profits are shared as a common Percentage Rate rather than a Fixed amount. The Investments were jointly funded by the Bank and the Equity of Investment Account holders. The sum of N1,476.31 Million was paid by the Bank to the Mudaraba Account Holders for the nine Months period ending 30th September 2018.

1






26 Fee and commisssion N'000 N'001 N'000 N'000Banking Service Fees 655,637 234,554 616,642 174,428 Foreign Exchange Commissions 34,677 15,522 99,833 12,947 Trade Finance Fees 298,486 100,393 100,702 39,417 Other Operating Income - - 5 3

988,800 350,469 817,182 226,795

27 Other Operating Income





N'000 N'001 N'000 N'000 Wakala income 224,141 80,821 110,019 40,000

224,141 80,821 110,019 40,000

28 Non Trading Exchange (Loss)/Gain

29 Staff costs

9 Months Eneded 30

Sept

3 Months Eneded 30

Sept

9 Months Eneded 30

Sept

3 Months Eneded 30

Sept N'000 N'000 N'000 N'000

Salaries 1,273,092 463,415 1,054,143 379,960 Staff pension 94,776 44,890 146,029 12,859 Staff allowances 425,009 159,272 309,793 129,801 Medical and other allowance 154,480 53,945 123,642 42,586 Training and Seminar expenses 51,034 4,855 79,630 41,079

- 1,998,391 726,377 1,713,237 606,285

30 Depreciation and Amortisation





N'000 N'000 N'000 N'000Depreciation of Property, Plant & Equipment 372,395 127,828 340,511 120,418 Amortisation of Leasehold Improvement 14,417 6,635 17,332 - 11,836 Amortisation of Intangible Assets 47,341 16,152 42,738 14,576

434,153 150,615 400,581 123,158

The Banks' Accounting Policy provides that Monetary Assets & Liabilties denominated in Foreign Currencies been converted in to Naira a the rate of exchange ruling at the Balance sheet date and any differenece thereof be taken to the Statement of Other Comprehensive income.

2


31 Other Expenses





N'000 N'000 N'000 N'000Advertising and marketing 75,178 13,831 53,455 16,032 Administrative - note 31 (i) 1,514,820 519,588 1,320,989 478,227 Subscription and Professional fees 76,741 32,442 32,871 9,235 Provision of Banking Sector Resolution Cost Trust Fund - - ACE's Expense 49,045 26,421 41,072 16,315 Rental charges (Occupancy Cost) 236,908 78,081 185,317 64,395 Licences 259,392 124,983 6,581 1,674 Bank Charges 42,008 13,668 37,340 12,286 Audit fee & Other Expenses 20,800 6,600 27,000 9,000 Directors expenses 191,914 55,548 188,522 78,406 Others 382 - 8,609 15,944 - 2,492

2,467,188 862,553 1,909,091 683,078

31 (i) Administrative





N'000 N'000 N'000 N'000Telephone expenses 4,519 2,025 1,437 373 Internet connection 183,371 58,089 122,632 39,770 SWIFT/NIBBS Charges 9,980 3,512 12,887 4,216 Courier charges 11,283 3,649 13,068 3,178 Local and foreign travels 37,084 13,211 44,935 9,108 Printing & Stationeries 51,681 18,026 43,542 18,560 Repairs and maintenance 169,033 60,193 22,908 13,401 Security Guards 47,684 17,311 27,438 14,748 Other security expenses 2,250 898 16,113 - 1,921 Money and other Insurance 30,712 7,449 22,867 8,890 NDIC Premium 201,930 68,721 159,201 54,900 Fuel Expense 15,911 5,533 13,027 4,448 Vehicle repairs 14,535 4,305 9,843 3,884 Service contract (HR and Admin) 270,449 92,002 207,017 81,268 Data recovery and other software exp 48,124 2,559 122,149 61,532 Donation 5,000 5,000 150 - Newspapaer, Magazine & Periodials 5,897 3,986 1,251 454 Entertainment 3,629 897 3,789 1,540 Sundry expenses 28,435 20,113 29,271 20,226 Cash shortage W/O 977 307 227 71 Technical service 47,005 7,898 214,799 52,438 Generator expenses 44,389 13,661 43,331 12,054 Cleaning expxnses 1,240 487 3,078 1,098 ATM related expenses 4,739 - 73,946 13,514 3,112 Sukuk Premium expenses 22,816 13,662 13,731 4,577 ISO 27001 8,986 - 4,454 - Treasury expenses 29,389 7,336 32,313 10,250 E-Business expenses 201,440 158,469 75,894 39,908 Corporate and retail banking expenses 3,795 1,845 230 - Regulatory expenses 8,537 2,390 45,893 16,144

1,514,820 519,588 1,320,989 478,227

3


32 Provision for Finance Impairment of Financing and Investment32 (a) PROVISION FOR IMPAIREMENT OF FINANCING AND INVESTMENT

Prudential Adjustment for nine months ended 30th September 2018

Provision on Risk AssetsSpecific General OKL TOTAL

N'000 N'000 N'000 N'000Provision per CBN Prudential Guideline 2,060,174 828,155 40,950 2,929,279 Impairement Allowance per IAS 39 (Specific and Collective) 357,629 163,672 40,950 562,251 As at 30,September. 2018 1,702,545 664,483 - 2,367,028

PROVISION FOR IMPAIREMENT OF FINANCING AND INVESTMENT

During the period under review, no transfer was made from Statement of Changes in Equity (SCE) to Risk Regulatory Reserve(Non Distributsble Reserve).

The Provision for impairement is based on the impairement test conducted by the Bank in accordance with the International Acconunting Standard (IAS 39). The first table is for the impairement while the second table is for the provision on Risk Assets in accordance to the Central bank of Nigeria's Prudential Guidelines. Under the total Column in International Financial reporting Standard (IFRS) impairement table below, addition of the prior year over impairement charges and impairement for current year makes up the current year charges.

1

Murabaha Musharaka Qard Hassan Istisina Ijara Other Assets TotalN'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 458,277 - - 35,948 27,076 40,950 562,251 Impairment for current year - - - 100,000 - - 100,000 Balance at 30 September 458,277 - - 135,947 27,076 40,950 662,251 Notes 6 7 8 9 10 15 (iii) Provision by Products (CBN)

Murabaha Musharaka Qard Hassan Istisina Ijara Other Assets TotalN'000 N'000 N'000 N'000 N'000 N'000 N'000

Balance at 1 January 2,019,357 24,000 2,982 265,486 476,504 40,950 2,829,279 Impairement for current year - - 100,000 - 100,000 Balance at 31 September 2,019,357 24,000 2,982 365,486 476,504 40,950 2,929,279

2

33 SIGNIFICANT SHAREHOLDING (5% UNIT & ABOVE) 2018 2017Holdings % Holdings %

Dantata Investment & Securities Limited 1,410,209,270 12 1,923,220,476 16 Dantat Aminu Alhassan 618,136,207 5 - - Islamic Development Bank 1,002,160,494 8 1,002,160,494 9 Dangote Industries Ltd 1,000,000,000 8 1,000,000,000 9 Altani Investment Limited 800,000,000 7 800,000,000 7 Indimi Muhammadu 1,366,906,522 12 1,366,906,522 12 Mutallab Umaru Abdul 977,722,774 8 1,430,117,383 12 At 31 October 7,175,135,267 61 7,522,404,875 64

34 Earnings per share

Basic earnings per share

Profit attributable to ordinary shareholders


2018




N'000 N'000 N'000 N'000Profit for the period 241,332 10,117 779,695 239,431 Profit attributable to ordinary shareholders 241,332 10,117 779,695 239,431

Weighted average number of ordinary shares


2018




N'000 N'000 N'000 N'000Issued ordinary shares at 1 January 29,464,250 29,464,250 29,464,250 29,464,250 Effect of share options exercised - -

29,464,250 29,464,250 29,464,250 29,464,250

Basic earnings per share 0.82 0.03 2.65 0.81

There is no transactions during the year which caused dilution of the earnings per share.

Weighted average number of ordinary shares at 31 September

3

Documents

Jaiz Bank PLC Informations1 · Standards, the Financial Accounting Standards issued by AAOIFI, the Financial Reporting Council ... Investment in Istisna 8 2,282,200 1,335,361