11Copy of Copy of NSE Q3-2019 REPORT -NSE FINAL pdf-4

JAIZ BANKSTATEMENT OF FINANCIAL POSITIONAS AT 30-Sep-2019 9 Months 9 Months 12 Months

Sep-19 Sep-18 Dec-18Notes N'000 N'000 N'000

AssetsCash and Balances with Central Bank of Nigeria 3 31,869,926 25,691,738 23,409,751 Due from Banks and Other Financial Institutions 4 15,161,986 10,357,671 7,408,063 InterBank Murabaha 5a - 513,562 - Sukuk Investment 5 37,968,727 9,921,873 19,819,872 Investment in Musharaka 6 - 1,172,282 - Murabaha Receivables 7A 27,023,219 23,119,440 25,330,697 Investment in Bai Mu'ajjal 7B 629,354 - 59,186 Investment in Istisna 8 1,210,525 2,282,200 1,865,656 Investment in Ijara Assets 9 18,609,366 14,869,245 15,264,911 Qard Hassan 10 169,501 114,488 171,948 Investment Properties 10ii 1,603,513 - 1,603,513 Investment in Assets Held for Sale 11i 10,696,835 2,848,087 7,699,830 Property, Plant and Equipment 12 2,499,178 2,230,795 2,578,588 Leasehold Improvement 13 74,268 36,172 58,118 Intangible Assets 14 500,132 356,570 370,748 Other Assets 15 3,916,288 6,347,861 2,809,209 Deferred Taxation Asset 16b 12,379 - 12,368 Total Assets 151,945,196 99,861,984 108,462,458

LiabilitiesCustomer Current Deposits (17a) 57,095,433 33,248,736 45,950,138 Other Financing 18a 11,613,328 - 2,000,000 Other Liabilities 18b 12,783,010 13,855,856 8,229,960 Tax payable 16a 223,827 79,639 90,344 Deferred tax 16b - 14,641 - Total liabilities 81,715,598 47,198,872 56,270,442

Equity of Investment Account HoldersCustomers' Unrestricted Investment Accounts (17b) 34,471,237 36,194,415 36,716,950 Mudaraba Term Deposit (17b) 22,649,198 2,789,550 2,365,904 Total Equity of Investment Account Holders 57,120,435 38,983,965 39,082,854

Capital & ReservesShare Capital 19 14,732,125 14,732,125 14,732,125 Share Premium 20 627,365 627,365 627,365 Retained Earnings 21 (4,574,108) - 4,244,308 - 4,574,108 Risk Regulatory reserve 22 1,619,336 2,267,029 1,619,336 Statutory Reserve 22i 504,826 254,516 504,826 Other Reserves 22ii 199,618 42,420 199,618 Total Equity 13,109,162 13,679,148 13,109,162

Total Equity and Liabilities 151,945,196 99,861,984 108,462,458 Guarantee And Other Contingent Assets & Liabilities 35 24,293,066 23,999,704 29,110,417

Dr. Umaru A. Mutallab, FCA, CON (Chairman) FRC/2013/ICAN/00000004391

Hassan Usman, FCA (Managing Director/CEO)FRC/2013/ICAN/00000003984

Abdufattah O. Amoo, FCA (Chief Finance Officer)FRC/2018/ICAN/00000017779

The accounting policies and the accompanying explanatory notes form part of these financial statements.This financial statement were approved by the Board of Directors for issue on 23rd Oct, 2019 and signed on its behalf by

JAIZ BANK

INCOME FOR THE PERIOD ENDED 30-Sep-2019

3 Month Ended Sept

2019

9 Month Ended Sept

2019

3 Month Ended Sept

2018

9 Month Ended Sept

2018Notes N'000 N'000 N'000 N'000

Income:Income from Financing Contracts 23 1,800,891 5,137,823 1,524,808 4,613,927Income from Investment Activities 24 1,822,836 4,232,118 290,714 890,501Gross Income from financing and investment transactions 3,623,727 9,369,942 1,815,522 5,504,428Return on Equity of Investment Account Holders 25(i) (793,370) (1,987,689) (467,151) (1,476,306)Bank's share as a Mudarib/Equity investor 25(ii) 2,830,356 7,382,252 1,348,371 4,028,122Net impairment (charges)/Writeback for the period 32 (376,007) (670,150) (30,000) (100,000)Net Spread after Provision 2,454,349 6,712,102 1,318,371 3,928,122Other IncomeFees and Commisssion 26 338,095 913,786 350,469 988,800Other Operating Income 27 56,433 44,588 80,821 224,141Total Income 2,848,877 7,670,477 1,749,661 5,141,063

Expenses:Staff Costs 29 1,161,445 2,611,513 726,377 1,998,391Depreciation and Amortisation 30 175,349 515,926 150,615 434,153Operating Expenses 31(i) 948,142 3,072,198 862,553 2,467,188Total Expenses 2,284,936 6,199,638 1,739,545 4,899,732Profit Before Tax 563,941 1,470,839 10,116 241,331Income Tax Expenses 16a (67,673) (220,626) (3,035) (79,640)Profit period after Tax 496,268 1,250,214 7,081 161,691

Other Comprehensive IncomeItem that may be reclassified to profit or lossNet Gain on Gifted Property 28 - - - Total comprehensive income for the period 496,268 1,250,214 7,081 161,691

Earnings Per ShareBasic and diluted Earnings per share (Kobo) 1.91 kobo 4.24 kobo 0.02 kobo 0.55kobo

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE

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JAIZ BANK

STATEMENT OF CHANGE IN EQUITYFOR THE PERIOD ENDED 30-Sep-2019

Share Capital Share

Premium Retained Earnings

Risk Regulatory

Reserve

CBN (AGSMEIS)

Reserve

Other Comprehensive

Income Statutory Reserve Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 Balance at 1 January 2019 14,732,125 627,365 (4,574,108) 1,619,336 87,305 112,313 504,826 13,109,161Balance as at 30 Sept 2019 14,732,125 627,365 (4,574,108) 1,619,336 87,305 112,313 504,826 13,109,161

Share Capital Share


Risk Regulatory

Reserve

CBN (AGSMEIS)

Reserve

Other Comprehensive

Income Statutory

Reserve Total N'000 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 Balance as at 30 Sept 2018 14,732,125 627,365 (4,244,308) 2,267,029 42,420 - 254,516 13,679,147

Share Capital Share


Risk Regulatory

Reserve

CBN (AGSMEIS)

Reserve

Other Comprehensive

Income Statutory Reserve Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000 N'000 Balance at 1 January 2018 14,732,125 627,365 (4,244,307) 2,267,029 42,420 - 254,516 13,679,147Adjustment on IFRS 9 initial recognition - (1,516,664) - (1,516,664)Restated Opening Balance under IFRS 9 14,732,125 627,365 (4,244,307) 750,364 42,420 - 254,516 12,162,483Revaluation Reserve - - - - - 112,313 - 112,313Transfer to Risk Regulatory Reserve - - (868,971) 868,971 - - - - Transfer to Statutory Reserve - - (250,310) - - - 250,310 - Transfer to AGSMEIS - - (44,885) - 44,885 - - - Profit for the year - - 834,366 - - - - 834,366Balance at 31 December 2018 14,732,125 627,365 (4,574,108) 1,619,336 87,305 112,313 504,826 13,109,161

31 December 2018

9 Month Ended Sept 2019

9 Month Ended Sept 2018

Other Reserves

Other Reserves

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JAIZ BANKSTATEMENT OF CASH FLOWSFOR THE PERIOD ENDED 30-Sep-2019

9 Months 9 Months 12 MonthsSep-19 Sep-18 Dec-18

Notes N'000 N'000 N'000

Cash flow from operating activitiesTotal comprehensive income for the period 1,250,214 241,332 946,678Adjustments for non cash items:Depreciation 12 438,137 372,395 502,007Amortization of Intangible Assets 14 60,045 47,341 64,204Amortisation of leasehold Improvement 13 17,745 14,417 20,832Provision for financing impairment 32 670,150 (100,000)Amortisation of prepaid rent 31(i) 241,235 169,739 326,041Tax 16a 220,626 - 90,345Gifted Item 28 - - (112,313)Operating profit before changes in operating asset and liabilities 2,898,150 745,224 1,837,795

Working capital adjustment:Interbank Murabaha 5a - (513,562) - Sukuk 5 (18,148,855) (3,203,832) (13,431,955)Murabaha receivables 7A (1,692,522) (5,686,086) (5,773,997)Investment in Musharaka 6 - 27,718 1,200,000Qard Hassan 10 2,447 (94,512) (26,849)Istisna 8 655,131 (1,533,338) (505,057)Bai Muajjal 7B (570,168) 1,393,636 (59,186)Ijara rental receivables 9 (3,344,455) (1,949,082) 321,518Investment in trading assets 11i (2,997,005) - (1,816,542)Other assets 15 (1,348,325) (1,136,254) (1,112,814)Customers' current account (17a) 11,145,295 7,609,437 12,243,779Other Financing 18a 9,613,328 - 2,000,000Other liabilities 18b 2,632,687 3,582,458 2,854,097Tax paid 16a (87,144) 135,677 (135,677)Net cash from/(used in) operating activities (1,241,434) (1,367,739) (4,242,682)

INVESTING ACTIVITIESPurchase of property, plant & equipment 12 (358,726) (475,689) (656,964)Purchase of intangible assets 14 (189,428) (63,625) (87,391)Improvement on leasehold properties 13 (33,894) (13,367) (51,295)

(582,049) (552,681) (795,649)

FINANCING ACTIVITIESDistribution to charity - (6,664) (6,664)Customers investment accounts (17b) 18,037,581 - 4,673,957Net cash provided by (used in) financing activities 18,037,581 (6,664) 4,667,292

Increase (Decrease) In Cash And Cash Equivalents 16,214,098 (35,234,814) 1,466,756Cash and cash equivalents at beginning of year 30,817,814 38,689,357 29,351,060Cash And Cash Equivalents At end of the Period 47,031,912 3,454,543 30,817,816

The accounting policies and the accompanying explanatory notes form part of these financial statements

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JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30TH SEPTEMBER, 2019

1 Reporting entity

2 Change in accounting policies

(a) IFRS 15 Revenue from Contracts with Customers

(b) IFRS 9 Financial Instruments

2.1 New standards, interpretations and amendments to existing standards that are not yet effective

The accounting policies adopted are consistent with those of the previous financial year except as noted below.During the year the Bank has adopted the following new standards / amendments to the standards effective for the annual period beginning on or after 1 January 2018

The standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Bank ’s financial statements are disclosed below. The Bank intends to adopt these standards, if applicable, when they become effective.

Jaiz Bank Plc (the “Bank”) is the first fully fledged non-interest financial institution in Nigeria. The Bank was granted a banking licence to carry on thebusiness of non interest banking and commenced operation on January 6th, 2012 with three branches in two states and the Federal Capital Territory.

The Financial Statement of the Bank as at 30 September 2019, is only for the Bank as it has no subsidiary and/or Associate company.

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

In May 2014, the IASB issued IFRS 15 Revenue from Contracts with Customers, effective for periods beginning on 1 January 2018 with early adoptionpermitted. IFRS 15 defines principles for recognizing revenue and will be applicable to all contracts with customers. However, interest and fee incomeintegral to financial instruments and leases will continue to fall outside the scope of IFRS 15 and will be regulated by the other applicable standards (e.g.IFRS 9, and IFRS 16 Leases).

Revenue under IFRS 15 will need to be recognised as goods and services are transferred, to the extent that the transferror anticipates entitlement to goodsand services. The following five step model in IFRS 15 is applied in determining when to recognise revenue, and at what amount:i) Identify the contract(s) with a customerii) Identify the performance obligations in the contractiii) Determine the transaction priceiv) Allocate the transaction price to the performance obligations in the contractv) Recognise revenue when (or as) the entity satisfies a performance obligation

The standard also specifies a comprehensive set of disclosure requirements regarding the nature, extent and timing as well as any uncertainty of revenueand the corresponding cash flows with customers. This standard does not have any significant impact on the Bank.

In July 2014, the IASB issued IFRS 9 Financial Instruments (“IFRS 9”), which replaces IAS 39 “Financial Instruments: Recognition and Measurement”.IFRS 9 addresses all aspects of financial instruments including classification and measurement, impairment and hedge accounting.The adoption of IFRS 9 also significantly amends other standards dealing with financial instruments such as IFRS 7 Financial Instrument Disclosures.

The transitional provisions of IFRS 9 permitted the Bank to elect not to restate comparative figures. Adjustments to the carrying amounts of financialassets and financial liabilities at the date of the transition were recognised in the opening retained earnings and other reserves of the current period.

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

IFRS 16: Leases

2.2 Significant Accounting Policies(a) Statement of Compliance with International Financial Reporting Standards

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

i Going Concern

The standard was issued in January 2016 and sets out the principles for the recognition, measurement, presentation and disclosure of leases. It introduces a single lessee accounting model and requires a lessee to recognise: • assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. For lessor accounting, it substantially carries forward the requirements in IAS 17. Accordingly, a lessor continues to classify its leases as operating leases or finance leases, and to account for those two types of leases differently. An entity shall apply this Standard for annual reporting periods beginning on or after 1 January 2019.The adoption of the standard does not have impact on the Bank’s operation

The financial statements have been prepared in accordance with the requirements of International Financial Reporting standards (IFRS) as issued byInternational Accounting standards Board (IASB). For matters on which no IFRS standard is applicable or IFRS conflicts with Shari'ah rules andprinciples, the bank uses the relevant Financial Accounting Standard as issued by the Accounting & Auditing Organization for Islamic FinancialInstitutions (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 in accordance with the International Financial Reporting Standards(“IFRS”) issued by the International Accounting Standards Board (“IASB”). For matters that are peculiar to Islamic Banking and Finance, the Bank shallrely on the Statement of Financial Accounting (“SFA”) and Financial Accounting Standards (“FAS”) issued by the Accounting and Auditing Organizationfor Islamic Financial Institutions(“AAOIFI”), Standards issued by the Islamic Financial Services Board (“IFSB”) and Circulars issued by the Central Bankof Nigeria (“CBN”) shall also be of guidance.

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

The Bank's management shall be making assessment of the Bank's ability to continue as a going concern and where satisfied that the Bank has theresources to continue in business for the foreseeable future shall form a judgment and prepare accounting information based on that. In any situationwhereby the Board of Directors is aware of any material uncertainties that may cast significant doubt upon the Bank's ability to continue as a goingconcern such issues shall be disclosed in the annual report.

ii Fair Value of Unquoted Equity Securities and Investment Properties

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

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

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

Inventory of stationery and consumables held by the Bank are to be stated at the lower of cost and net realizable value in line with IAS 2. Wheninventories become old or obsolete, an estimate is to be made of their net realizable value. For individually significant amounts, this estimation is to beperformed on an individual basis. For amounts that are not individually significant, collective assessment shall be made and allowance applied according tothe inventory type and degree of ageing or obsolescence based on historical selling prices.

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'sunquoted equity securities cannot be derived from an active market, they shall be derived using a variety of valuation techniques. Judgment bymanagement is required to establish fair values through the use of appropriate valuation models, consideration of comparable assets, discount rates andthe assumptions used to forecast cash flows. Investment properties and investments in real estate projects shall be carried at fair value as determined byindependent real estate valuation experts. The determination of the fair value for such assets requires the use of judgment and estimates by theindependent valuation experts that are based on local market conditions existing at the date of the statement of financial position.

The Bank shall review its financing contracts at each reporting date to assess whether an impairment provision should be recorded in the financialstatements. In particular, judgment by management is required in the estimation of the amount and timing of future cash flows when determining the levelof provision required. Such estimates are based on assumptions about factors involving varying degrees of judgment and uncertainty and actual resultsmay differ resulting in future changes to the provisions. In addition to specific provisions against individually significant financing contracts, the Bank alsoshall make a collective impairment provision of 1% against exposures which, although not specifically identified as requiring a specific provision, have agreater risk of default than when originally granted. This takes into consideration, factors such as any deterioration in country risk, industry, andtechnological obsolescence, as well 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 or prolonged decline in the fair value belowtheir costs or where other objective evidence of impairment exists. The determination of what is 'significant' or 'prolonged' requires judgment. The Bankwould evaluate factors, such as the historical share price volatility for comparable quoted equities and future cash flows and the discount factors forcomparable unquoted equities.

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

(e) Intangible Assets

(f) Financial Instruments – Initial Recognition and Subsequent Measurement

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

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

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

All financial assets and liabilities are initially recognized on the trade date, i.e. the date that the Bank becomes a party to the contractual provisions of theinstrument. The classification of financial instruments at initial recognition depends on the purpose and the management's intention for which thefinancial instruments were acquired and their characteristics. All financial instruments are measured initially at their fair value plus transaction costs, exceptin the case of financial assets recorded at fair value through income statement.

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

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

Depreciation is charged when the assets are available for use irrespective of whether they are put to use. Assets that are subject to depreciation arereviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An asset's carryingamount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount. Therecoverable amount is the higher 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 impairment loss (if any). Expenditure incurredon internally developed software is recognized as an asset when the Bank is able to complete the software development and use it in such a manner that itwill be able to generate economic benefit to the Bank, 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, and is amortized over the usefuleconomic life of the software.

(g) Ijarah (Leasing)

(h) Murabaha Receivables from Banks

(i) Murabaha Receivables from Customers

(j) Musharaka

(k)

(l) Impairment of Investment in Risk Assets

The Bank shall comply fully with the requirements of Sharia in recognition and measurement of Ijarah financing. The periodic lease rentals receivable aretreated as rental income during the period they occur and charge thereon is included in operating expenses while initial direct cost incurred are written offto the income statement in the period they are incurred.

These are interbank commodity Murabaha transactions. The Bank arranges a Murabaha transaction by buying a commodity (which represents the objectof the murabaha) and then resells this commodity to the beneficiary murabeh (after adding a profit margin). The sale price (cost plus the profit margin) ispaid either lump sum at Maturity or in installments 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 andprovision for impairment, if any. Promise made in the Murabaha to the purchase Orderer is obligatory upon the customer and the bank can claimdamages to the exact amount of loss suffered.

Musharaka contracts represents a partnership between the Bank and a customer whereby each party contributes to the capital in equal or varyingproportions to establish a new project or share in an existing one, and whereby each of the parties becomes an owner of the capital on a permanent ordeclining 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 andprovision for impairment, if any.

At each balance sheet date, the Bank assesses whether there is objective evidence that the financial assets are impaired. Financial assets are impaired whenobjective evidence demonstrates that a loss event has occurred after the initial recognition of the asset, and that the loss event has an impact on the futurecash flows of the asset that can be measured reliably.

A contract between a Group and a customer whereby one party (the principal: the Muwakkil) appoints the other party (the agent: Wakil ) to invest certainfunds according to the terms and conditions of the Wakalah for a fixed fee in addition to any profit exceeding the expected profit as an incentives for theWakil for the good performance. Any losses as result of the misconduct or negligence or violation of the the terms and conditions of the Wakalah areborne by the Wakil for other wise, they are by the principal.

Wakalah

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 Recognitioni Murabaha

ii Ijarah Muntahia Bittamleek

iii Musharaka

iv Dividends

v Fees and Commission Income

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

Dividends from investments in equity securities are recognized when the right to receive the payment is established. This is usually when the dividend hasbeen declared.

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

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

Assets found not to be impaired individually are assessed collectively for any impairment that has been incurred but not identified earlier. Insignificantassets are tested for impairment collectively.

The Bank considers impairment both at individual asset level and also at collective level. All individually significant assets are assessed for specificimpairment.

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

Impairment loss on assets classified at amortized cost are measured as the difference between the carrying value of the asset and the present value offuture cash flows discounted at the initial assets effective profit rate. Losses are recognized in the income statement of the period the loss is incurred.

Also, provision is determined from a specific assessment of each customer's account in accordance with the Central Bank of Nigeria's (CBN) PrudentialGuidelines. A minimum general provision of 2% is made on all risk assets, which have not been specifically provided for.

When an investment is deemed not collectible, it is written off against the related provision for impairments and subsequent recoveries are credited to theprovision for loan losses in the statement of income. If the amount of the impairment subsequently decreases due to an event occurring after the write-down, the release of the provision is credited as a reduction of the provision for impairment in the statement of income.

Risk assets in respect of which a previous provision was not made are written directly to the statement of income when they are deemed to beirrecoverable.

vi Sale of Property under Development

Contract to construct a property; orContract 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)

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

Where a contract is judged to be for the construction of a property, revenue is recognized using the percentage of completion method, as constructionprogresses. The percentage of work completed is measured based on the costs incurred up until the end of the reporting period as a proportion of totalcosts expected to be incurred.

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

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

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

Commission on negotiation of various letters of credit and overdue Profit on delayed foreign payments are accounted for on receipt.Other Profit and income earned on the Bank's own funds held outside Nigeria are accounted for on receipt.

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

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

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

Profit on mudaraba payable (banks and non-banks)Profit on these is accrued on a time-apportioned basis over the period of the contract based on the principal amounts outstanding.

b) Return on Equity of Investment Account Holders

(n) Transactions in Foreign Currencies

i

ii

iii

iv

(o) Taxation

i Current Income Taxation

Return on equity of investment account holders is based on the income generated from jointly financed assets after deducting Mudarib share and isaccrued based on the terms and conditions of the underlying Mudaraba agreement. Investors' share of income represents income generated from assetsfinanced by investment account holders net off allocated administrative expenses and provisions. The bank's share of profit is deducted from theinvestors' share of income before distribution to investors.

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

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

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

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated into Naira using the exchange rates as at the dates ofthe initial recognition. Non-monetary items measured at fair value in a foreign currency are translated into Naira using the exchange rates at the date whenthe fair value is determined. Exchange gains and losses on non-monetary items classified as “fair value through statement of income” are taken to theincome statement and for items classified at “fair value through equity” such differences are taken to the statement of comprehensive income.

Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the

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

ii Deffered Taxation

(p) Investmentsi Investment Securities

ii Investments at Fair Value through Statement of Income

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

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

Provision for deferred taxation is made by the liability method and calculated at the current rate of taxation on the temporary differences between the netbook value of qualifying fixed assets and their corresponding tax written down value in accordance with IAS 12 (Income taxes). The principal temporarydifferences arise from depreciation of property, plant and equipment, provisions for pensions and other post-retirement benefits, provisions forInvestment losses and tax losses carried forward. The rates enacted or substantively enacted at the balance sheet date are used to determine deferredincome tax.

Deferred tax assets are recognized where it is probable that future taxable profit will be available against which the timing differences can be utilized.

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

Investments at fair value through statement of income include investments designated upon initial recognition as investments at fair value throughstatement of income. Financial assets carried at fair value through statement of income are recognised at fair value, with transaction costs recognised inthe consolidated statement of income.

After initial measurement, investments at fair value through equity are subsequently measured at fair value. Unrealised gains and losses are recognised instatement of comprehensive income and then transferred to the available for sale reserve in the consolidated statement of changes in equity. When theinvestment is disposed of or determined to be impaired, the cumulative gain or loss, previously transferred to the available for sale, reserve is recognisedin the consolidated statement of income. Where the Bank holds more than one investment in the same security they are deemed to be disposed off on aweighted average basis. Profit earned whilst holding investments at fair value through equity is reported as Income from investment activities' using theeffective profit rate method. Long-term investments are investments held over a long period of time to earn income. Long-term investments may includedebt and equity securities.

iv Investments in Subsidiaries

(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

On disposal of an investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the statement ofincome.

Retirement benefits to employees are provided under a defined contribution scheme, which is funded by contribution from the bank and employees.Funding under the new scheme is 8.0% by staff and 10% by the Bank based on annual basic salary, housing and transport allowances in line with the newPension Reform Act, 2014. Membership of the scheme is automatic upon resumption of duty with the Bank. The Bank has no further paymentobligations once the contributions have been paid.

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

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

Provision is recognized when the Bank has a present obligation whether legal or constructive as a result of a past event for which it is probable that anoutflow of resources embodying economic benefits will be required to settle the obligation and the amount can be reliably measured, in accordance with Transactions that are not currently recognized as assets or liabilities in the balance sheet, but which nonetheless give rise to credit risks, contingencies and Outstanding and unexpired commitments at year end in respect of these transactions are to be shown by way of note to the financial statements.Income on off-balance sheet engagement is in form of commission and fees.Commission and fees are recognized when transactions are executed.

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

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

The Bank acts as trustee in its capacity as a Mudarib when managing the equity of investment account holders. Equity of investment account holders isinvested in murabaha and due from banks, sukuk and financing contracts with customers. Equity of investment account holders is carried at fair value ofconsideration received less amounts settled. Expenses are allocated to investment accounts in proportion of average equity of investment account holdersto total average assets of the Bank.

Income is allocated proportionately between equity of investment account holders and owners' equity on the basis of the average balances outstandingduring the year and share of the funds invested. Equity and assets of restricted investment account holders are carried off-balance sheet as they are notassets and liabilities of the Bank.

(u) Segment Reporting

(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

The Bank prepares its segment information based on geographical and business segments as primary and secondary reporting segments, respectively inaccordance with IFRS 8 (Operating segments).

A business segment is a group of assets and operations engaged in providing products or services that are subject to risks and returns that are differentfrom those of other business segments. A geographical segment is engaged in providing products or services within a particular economic environmentthat are subject to risks and returns different from those of segments operating in other economic environments.

Dividends proposed by the Directors but not yet approved by members are disclosed in the financial statements in accordance with the requirements ofthe Company and Allied Matters Act 1990.

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

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

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

Dividends for the year that are approved by the shareholders after the balance sheet date are dealt with in the subsequent events note.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right or shariah requirementto set off the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

The Bank has appointed the Management committee charged with the responsibility of allocating resources and assessing performance as the ChiefOperating Decision Maker as required under IFRS 8. The CODM is reviewed and advised by the Board for decisions on significant transactions and orevents

JAIZ BANKNOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30-Sep-19

9 Months 9 Months 12 Months 3 Cash and Balances with Central Bank of Nigeria Sep-19 Sep-18 Dec-18

N '000 N'000 N '000Cash 4,771,279 3,517,354 3,969,149 Current account with CBN 8,517,531 5,145,054 8,593,192 Deposit with CBN 18,496,978 17,013,766 10,804,990 CBN AGSMEIS Balance 84,138 15,564 42,420 Balance end of period 31,869,926 25,691,738 23,409,751

9 Months 9 Months 12 Months 4 Due from Banks and Other Financial Institutions Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balances with banks within Nigeria:First Bank Plc 100,584 298,646 236,096

a 100,584 298,646 236,096 Balances with banks outside Nigeria:First Bank UK 10,239,794 6,550,525 6,320,529 Habib Bank UK - - Banco De Sabadel 183,104 39,053 200,980 Standard Chartered 4,212,617 3,301,546 153,932 Bank Al-Bilad 214,683 167,902 189,307 Zenith Bank UK 211,204 307,218

b 15,061,402 10,059,025 7,171,967

Balance end of period a+b 15,161,986 10,357,671 7,408,063

9 Months 9 Months 12 Months 5a InterBank Murabaha Sep-19 Sep-18 Dec-18

N'000 N'000 N'000InterBank Murabaha - 513,562 - InterBank Murabaha Deferred Profit - - Balance end of period - 513,562 -

9 Months 9 Months 12 Months 5 Total Sukuk Investment Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Opening Balance 18,914,665 6,068,953 6,068,953 Addition during the month 17,664,700 3,203,832 13,325,033 Disposal/Redemption (1,304,669) - (479,321) Gross investment in Sukuk 35,274,696 9,272,785 18,914,665 Premium 1,991,392 449,749 473,967 Rental Receivable 702,640 199,339 380,894 Balance end of period 37,968,727 9,921,873 19,769,525

InterBank Murabaha are the Banks investments in other Non Interest window of a Conventional Banks.

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

The balances held with Banks outside Nigeria substantially represent the Naira equivalent of Foreign Currency balancesheld on behalf of customers in respect of Letters of Credit transactions. The corresponding Liabilty is included inMargin Deposits under "Other Liabilities" (see Note 18b). The amount is not available for the day to day operations ofthe Bank.

The total sukuk investment is broken down into i and ii below:9 Months 9 Months 12 Months

i Osun State Sukuk Sep-19 Sep-18 Dec-18N'000 N'000 N'000

Opening Balance 989,180 902,648 902,648 Addition during the month - 246,902 565,853 Disposal/Redemption (304,669) - (479,321) Gross investment in Sukuk 684,511 1,149,550 989,180 Premium 48,353 36,616 52,930 Rental Receivable 32,915 97,648 38,333 Balance end of period 765,779 1,283,814 1,080,443


9 Months 9 Months 12 Months ii FGN Sovereign Sukuk Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Opening Balance 17,925,485 5,166,305 5,166,305 Addition during the month 17,664,700 2,956,930 12,759,180 Disposal/Redemption (1,000,000) - Gross investment in Sukuk 34,590,185 8,123,235 17,925,485 Premium 1,943,039 413,133 421,037 Rental Receivable 669,725 101,691 342,561 Balance end of period 37,202,948 8,638,059 18,689,083

9 Months 9 Months 12 Months 6 Investment in Musharaka Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Gross Investment in Musharaka - 1,172,282 - Allowance for impairement - - Balance end of period - 1,172,282 -

9 Months 9 Months 12 Months 7A Murabaha Receivables Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Murabaha Retail 11,377,208 6,852,957 7,030,831 Murabaha Corporate 19,381,701 18,247,773 21,642,820 Murabaha Staff 784 1,558 1,125 Murabaha SME 954,539 26,863 44,425 Gross Recievable 31,714,232 25,129,151 28,719,200 Allowance for impairment note 32(ii) (2,213,369) (458,277) (1,724,308) Deffered Profit (2,477,643) (1,551,434) (1,664,196) Balance end of period 27,023,219 23,119,440 25,330,697

9 Months 9 Months 12 Months 7B Investment in Bai Mu'ajjal Sep-19 Sep-18 Dec-18

N'000 N'000 N'000 Bai Mu;ajjal Corporate 815,423 79,968 Gross Receivables 815,423 79,968 Allowance for impairement - - Deffered Profit - 186,069 - 20,782 Balance end of period 629,354 59,186

8 Investment in Istisna 9 Months 9 Months 12 Months Sep-19 Sep-18 Dec-18 N'000 N'000 N'000

Istisna Recievable 1,284,128 2,618,466 2,024,325 Allowance for impairement note 32b(ii) (11,827) (135,947) (11,827) Deffered Profit (61,776) (200,319) (146,841) Balance end of period 1,210,525 2,282,200 1,865,656

9 Investment in Ijara Assets 9 Months 9 Months 12 Months Sep-19 Sep-18 Dec-18 N'000 N'000 N'000

Ijara wa Iqtina 13,977,764 11,794,911 12,102,569 Ijara home finance 19,889 22,763 22,475 Ijara Auto & Others 260 254 260 Ijara Others 2,610,813 614,991 741,093 Gross investment in Ijara 16,608,727 12,432,919 12,866,397 Ijara accrued Profit 2,210,832 2,463,402 2,398,514 Allowance for impairement note 32b(ii) (210,193) (27,076) - Balance end of period 18,609,366 14,869,245 15,264,911


9 Months 9 Months 12 Months 10 Qard Hassan Sep-19 Sep-18 Dec-18

N'000 N'000 N'000 Balance at 1 Sept 232,260 114,488 149,082 Granted to Staff - - - Granted to customers - 83,178 Total during the month 232,260 114,488 232,260 RepaymentsStaff Repayment 30,592 1,036 Customer Repayment 29,518 1,000 Total Repayment during the month 60,110 2,036

impairment Allowance note 32b(ii) (2,649) - 2,649 Balance end of period 169,501 114,488 170,538

The staff portion is made up of facilities granted to employees to buy the Bank's shares under 2012 Private Placementexercise and facilities taken over by the Bank from their previous employers. Staff under critical situations were alsogranted this type of facility.

9 Months 9 Months 12 Months 10ii Investment Properties Sep-19 Sep-18 Dec-18

N'000 N'000 N'000 Investment Properties Corporate 1,603,513 - 1,603,513 Gross Investment Properties 1,603,513 - 1,603,513 Allowance for impairement - - - Balance end of period 1,603,513 - 1,603,513

9 Months 9 Months 12 Months 11i Investment in Assets Held for Sale Sep-19 Sep-18 Dec-18

N'000 N'000 N'000 Advances for LC Murabaha 1,304,601 2,016,574 1,364,458Inventory for Sale 9,392,234 831,513 4,654,012 Balance end of period 10,696,835 2,848,087 6,018,470

9 Months 9 Months 12 Months Sep-19 Sep-18 Dec-18

(ii) Schedules Inventory for Sale N'000 N'000 N'000Repossessed Property 2,159,524 831,513 831,513 Other Properties 1,180,698 1,444,221 Oil & Gas 300,000 1,310,000 Inventory Purchase-Fertilizer 450,451 749,417 Inventory Hajj Mat & Chemical - 174,000 Inventory Hide & Skin 804,433 144,861 Inventory JAMB Computers 4,497,128 - Inventory JAMB Application Pin - - Total Inventory for Sale 9,392,234 831,513 4,654,012

JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30TH SEPT 2019

12 Property, Plant and Equipment

Freehold Land

Building Freehold

Office Equipment

Motor Vehicle

Furnitures and Fixtures

Computer Equipment

Library Books

Fixed Assets WIP Total

Cost N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 000 N' 0001-January-2019Cost 57,086 559,211 842,730 475,431 214,490 2,027,518 - 442,763 4,619,231Additions/Reclassifiaction - 113,089 126,581 72,669 30,005 351,583 (345,197) 348,730Disposals - - - - - - - -

30-Sep-2019 57,086 672,300 969,311 548,100 244,495 2,379,102 97,566 4,967,960

Accumulated depreciation1-January-2019 - 26,735 429,220 238,253 139,362 1,207,073 - 2,040,642Depreciation - - 116,287 48,373 21,927 251,549 - 438,136Adjustment - - Disposals - - - - - - - -

30-Sep-2019 - 26,735 545,507 276,629 161,289 1,458,622 - 2,468,782

1 January 2018Cost 3,086 495,327 676,346 405,207 181,608 1,608,113 276,101 3,645,788Additions/Reclassifiaction - 5,371 75,246 18,920 18,362 244,879 112,911 475,689 Disposals - - - - - - - - 30 Sep 2018 3,086 498,298 723,130 416,259 191,156 1,806,168 354,506 4,121,477

Accumulated depreciation1 January 2018 - 16,710 302,785 178,359 113,087 910,851 - 1,521,792Depreciation - 95,004 46,164 20,897 209,952 378 - 372,395Adjustment - - (46) (2,806) (275) - (378) (3,505) Disposals - - - - - - - - 30 Sep 2018 - 16,710 397,743 221,717 133,709 1,120,803 - - 1,890,682

1 January 2018Cost 3,086 495,327 676,346 405,207 181,608 1,608,113 276,101 3,645,788Additions/Reclassifiaction 54,000 63,884 166,384 70,224 32,882 419,405 166,662 973,443Disposals - - - - - - - -

31 December 2018 57,086 559,211 842,730 475,431 214,490 2,027,518 - 442,763 4,619,231

Accumulated depreciation1 January 2018 - 16,710 302,785 178,359 113,087 910,851 - - 1,521,791Depreciation - 10,025 126,481 64,083 26,550 296,222 - - 523,362Adjustment - 0.01 (46) (4,189) (276) 0 - (4,511)Disposals - - - - - - - - -

31 December 2018 - 26,735 429,220 238,253 139,362 1,207,073 - - 2,040,642

Netbook value30-Sep-19 57,086 645,565 423,805 271,471 83,205 920,480 - 97,566 2,499,178

30-Sep-18 3,086 483,988 353,849 202,410 66,261 732,189 - 389,012 2,230,795

31-Dec-18 57,086 532,476 413,510 237,179 75,128 820,446 - 442,763 2,578,588


9 Months 9 Months 12 Months 13 Leasehold Improvement Sep-19 Sep-18 Dec-18

Cost N'000 N'000 N'000 Balance at 1 Jan 848,458 805,176 810,819 Adjustments - - Addition 31,369 17,429 37,639 Balance end of period 879,827 822,605 848,458

AmortisationBalance at 1 Jan 790,340 767,954 775,888 Adjustments - 4,062 - 6,380 Amortisation for the period 17,745 14,417 20,832 Balance end of period 805,559 786,433 790,340

Net Carrying amounts 74,268 36,172 58,118

9 Months 9 Months 12 Months 14 Intangible Assets Sep-19 Sep-18 Dec-18

N'000 N'000 N'000

CostComputer

softwareComputer

softwareComputer

softwareBalance at 1 jan 687,898 593,232 593,232 Addition 189,428 63,625 94,666 Balance end of period 877,327 656,857 687,898

Amortisation and impairment lossesBalance at 1 jan 317,150 237,891 252,946 Amortisation for the period 60,045 47,341 64,204 Reclassification - 15,055 - Balance end of period 377,195 300,287 317,150

Net Carrying amounts 500,132 356,570 370,748

JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30-Sep-2019

9 Months 9 Months 12 Months 15 Other Assets Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Sundry Debtors 226,342 433,287 360,498 Prepaid rent 415,593 471,847 450,254 Other prepayments 434,905 353,008 307,256 Prepaid Staff 193,079 226,019 106,658 Inventory and Other Security items 42,282 1,814,837 48,590 Branch development expenditure 25,236 333,464 308,905 Account receivables 420,343 1,519,321 319,005 Settlement Suspense 2,236,977 1,236,944 -

Investment in Fin. Inclusion 10,633 948,276 Interbranch - 21,575 84 717 Total 3,983,817 6,388,811 2,850,158 Impairment of Other Assets (67,528) (40,950) (40,950)Balance end of period 3,916,288 6,347,861 2,809,209

Movement in other assets: 9 Months 9 Months 12 Months Sep-19 Sep-18 Dec-18N'000 N'000 N'000

Balance at 1 Jan 2,850,158 7,034,672 7,034,672 Changes in the period 1,133,658 (1,483,580) (4,184,513)Impairment of Other Assets (67,528) (40,950) (40,950)Balance end of period 3,916,288 5,510,142 2,809,209

16a Tax Payable 9 Months 9 Months 12 Months Statement of Financial position Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance brought forward 90,345 135,677 135,677 Charge for the period 220,626 79,640 90,345

310,971 215,316 226,022 Less payment during the period (87,144) (135,677) (135,677)Balance end of period 223,827 79,639 90,345

9 Months 9 Months 12 Months ii) Income statement Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Company Income Tax 176,501 72,400 82,301 Education Tax 29,417 4,827 2,599 Information Technology levy 14,708 2,413 5,445

220,626 79,640 90,345 Deferred tax expensesDeferred tax expenses(Origination/(Reversal) of temporary differences) - - (27,009)Balance at 31 December 220,626 79,640 63,336

JAIZ BANK

NOTES TO THE FINANCIAL STATEMENTSFOR THE PERIOD ENDED 30-Sep-2019

9 Months 9 Months 12 Months 17 Due to customers Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Analysis by type of account

(17a) Current Account 57,095,433 33,248,736 45,950,138 (17b) Savings & JAPSA 34,471,237 36,194,415 36,716,950 (17b) Mudaraba Term Deposit 22,649,198 2,789,550 2,365,904

Balance end of period 114,215,868 72,232,701 85,032,992

9 Months 9 Months 12 Months Analysis by type of Depositor Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Government 615,969 551,641 906,691 Corporate 44,130,607 25,869,774 31,208,143 Individual 69,469,292 45,811,286 52,918,157 Balance end of period 114,215,868 72,232,701 85,032,992

Analysis by maturity

9 Months 9 Months 12 Months Sep-19 Sep-18 Dec-18N'000 N'000 N'000

Current Deposits 57,095,433 33,248,736 18,603,819 Savings Deposits 33,189,636 18,004,533 1,114,825 JAPSA 1,281,601 18,189,882 16,998,306 Mudaraba Term Deposit 22,649,198 2,789,550 2,365,904 Balance end of period 114,215,868 72,232,701 39,082,854

9 Months 9 Months 12 Months (17b) Equity of Investment Accountholders Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Savings Account 278,287 16,511,328 18,603,819 Children saving Account 6,077 872,245 1,114,825 Jaiz premium Savings Account - 33,150 18,189,883 16,998,306 Others including MTDs 22,649,198 3,410,510 2,365,904 Balance end of period 22,900,412 38,983,966 39,082,854

9 Months 9 Months 12 Months 18a Other Financing Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Fund Sources Outside the Bank (CBN/CACS) 11,613,328 - 2,000,000 Balance end of period 11,613,328 - 2,000,000

9 Months 9 Months 12 Months 18b Other Liabilities Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Manager Cheque 205,399 210,931 798,008 Margin Deposits 6,137,715 8,891,730 5,754,137 Accounts Payable 232,716 186,974 80,010 Vendors payable 295,359 43,981 284,144 Tax Liabilities 47,247 32,015 33,896 Profit payable to Mudararaba Savings Account 67,344 63,587 63,853 e-Banking Payables 593,617 353,050 357,102 Due to Charity - 5,148 2,471 3,298 Sundry Payables 3,805,421 2,115,949 644,436 Accrued audit fee 21,195 19,845 13,263 Sundry Deposit 22,535 1,428,000 29,076 Impairment Balance on Off Balance Sheet Items 11,914 - 11,914 Unearned Income 3,909 - 72,171 Unaudited YTD Profit 1,250,214 161,692 - Other Payables 93,573 345,631 84,652 Balance end of period 12,783,010 13,855,856 8,229,960

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

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

This represents the balance on the on-lending facilities granted by the Central Bank of Nigeria in collaboration with the Federal Government of Nigeria (FGN) under the Commercial Agriculture Credit Scheme (CACS). The FGN is represented by the Federal Ministry of Agriculture and Rural Development) who has the aim of providing concessionary funding for agriculture so as to promote commercial agricultural enterprises in Nigeria. The facility is for a period of 7 months but should not exceed the exit date of the scheme in September 2025 at overall target profit rate of 9% The profit distribution ratio between the CBN as Capital Provider and the NIFI as the Implementing Party is in the ratio of 2:7.


19 Owners EquityA Share capital 9 Months 9 Months 12 Months

Sep-19 Sep-18 Dec-18(i) Authorised N'000 N'000 N'000

25,000,000 25,000,000 25,000,000

Balance end of period 25,000,000 25,000,000 25,000,000

9 Months 9 Months 12 Months (ii) Issued and Fully paid Share capital Sep-19 Sep-18 Dec-18

N'000 N'000 N'000

- - - Balance end of period 14,732,125 14,732,125 14,732,125

9 Months 9 Months 12 Months 20 Share Premium Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 Jan 627,365 627,365 627,365 Movement during the month - - - Balance end of period 627,365 627,365 627,365

9 Months 9 Months 12 Months 21 Retained Earnings Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 Jan - 4,244,308 - 4,244,308 (4,244,308)Adjustment - - -Net profit for the period 834,366 161,692 834,366 Statutory Regulatory Reserve 250,310 - - 250,310 - AGSMEIS 44,885 - - 44,885 - Risk regulatory reserve - 868,971 - 868,971 - Balance end of period (4,574,108) (4,082,615) (4,574,108)

9 Months 9 Months 12 Months 22 Risk Regulatory Reserve Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 Jan 750,365 2,267,029 2,267,029Impact of adopting IFRS 9 - - 1,516,664- Restated Opening Balance under IFRS9 750,365 2,267,029 750,365Adjustment against retained earnings 868,971 - 868,971Balance end of period 1,619,336 2,267,029 1,619,337

9 Months 9 Months 12 Months 22 i Statutory Reserve Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 jan 504,826 254,516 254,517 Adjustment against retained earnings - - 250,310 Balance end of period 504,826 504,826 504,826

14,732,125

50,000,000,000 Ordinary shares of N0.50 each

29,464,249,300 Ordinary shares of N0.50 each at 1 January 14,732,125 14,732,125

Share premium is the excess paid by shareholders over the nominal value for their shares. There was no movement in share premium during the period.

9 Months 9 Months 12 Months 22ii(a) Other Comprehensive Income Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 Jan 112,313 - Movement in the month - - 112,313 Balance end of period 112,313 - 112,313

9 Months 9 Months 12 Months 22ii(b) Agric-Business/Small and Medium Enterprises Investment Scheme Sep-19 Sep-18 Dec-18

N'000 N'000 N'000Balance at 1 Jan 42,420 42,420 42,420 Provision for the period 44,886 - 44,885 Balance end of period 87,305 42,420 87,305


23 Income from Financing Contracts

3 Month Ended Sept

20199 Month Ended

Sept 2019 3 Month Ended

Sept 20189 Month Ended

Sept 2018N'000 N'000 N'000 N'000

Murabaha profit Corporate 852,487 2,463,311 609,177 1,805,665 Murabaha profit Retail 297,416 689,752 196,208 604,007 Murabaha LC Income 2,743 4,435 785 2,117 Bai Mu'ajjal Income 25,406 38,561 - Total Income from Murabaha 1,178,052 3,196,059 806,170 2,411,789 Ijara TransactionsIjara wa Iqtina Profit 489,829 1,598,966 536,740 1,700,524 Ijara Finance Lease Profit 97,987 204,299 19,135 61,569 Ijara profit home finance 231 720 292 897 Ijara Others 272 465 133 559 Total Income from Ijara 588,319 1,804,449 556,300 1,763,549 OthersIstisna Profit 34,520 137,315 92,794 226,338 Musharaka Profit - - 60,051 180,196 InterBank Murabaha Income - - 9,493 32,055 Total Income from other Financing Contracts 34,520 137,315 162,338 438,589

1,800,891 5,137,823 1,524,808 4,613,927

24 Income from investment activities

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Trading Assets Income 426,025 789,667 - 28,872 61408Sukuk 1,370,934 3,364,817 319,587 829094Rental Income 25,878 77,634 Total Investment income 1,822,836 4,232,118 290,714 890,501

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

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

793,370 1,987,689 467,151 1476306Profit from Financing Investments paid to Mudarabah Account Holders 793,370 1,987,689 467,151 1,476,306

(ii) Mudarib fees/ profit of Joint Investments

Bank's fees as Mudarib. 894,339 2,877,611 858,752 2596349Profit from the Bank's Joint Financing investments 1,936,018 4,504,642 489,620 1431774Bank's fee as Mudarib/Profit of owned Joint Investmets 2,830,357 7,382,252 1,348,372 4,028,123

26 Fees and Commisssion

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Banking Services 120,188 280,903 234,554 655,637.00 Net Income from E-Business 109,484 307,545 15,522 34,677.00 LC/ Trade Finance Income 108,423 325,338 100,393 298,486.00

338,095 913,786 350,469 988,800

27 Other Operating Income

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Wakala income 55,071 121,185 80,821 224141Miscellaneous Income - 17,325 13,366 - Foreign Exchange Gain/Losses 18,687 - 89,962 -

56,433 44,588 80,821 224,141

28 Other Comprehensive Income

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Gifted Assets Income - - - -

Profit paid to Unrestricted Mudarabah Account Holders / Fees of Mudarib

Total Income from financing Contracts


29 Staff Costs

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Salaries 916,041 2,243,627 463,415 1273092Staff pension 99,053 142,235 44,890 94776Training and Seminar expenses 117,682 148,337 4,855 51034Other Staff Expenses 28,669 77,314 213,217 579489

1,161,445 2,611,513 726,377 1,998,391

30 Depreciation and Amortisation

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Depreciation of Property, Plant & Equipment 147,683 438,137 127,828 372395Amortisation of Leasehold Improvement 6,758 17,745 6,635 14417Amortisation of Intangible Assets 20,908 60,045 16,152 47341

175,349 515,926 150,615 434,153

31(i) Operating Expenses

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Advertising and marketing 37,603 103,007 13,831 75178Administrative - note 31 (ii) 577,373 1,821,365 510,979 1,515,202 Subscription and Professional fees 28,128 65,316 32,442 76741ACE's Expense 32,149 86,444 26,421 49045Rental charges (Occupancy Cost) 80,527 241,235 78,081 236908Licences 102,874 499,723 124,983 259392Bank Charges 20,935 46,785 13,668 42008Audit fee & Other Expenses 7,500 22,710 6,600 20800Directors expenses 61,052 185,613 55,548 191914

948,142 3,072,198 862,553 2,467,188

31(ii) Administrative

3 Month Ended Sept

20199 Month Ended



Sept 2018N'000 N'000 N'000 N'000

Telephone expenses 1,070 3,418 2,025 4519Bandwith Connectivity 63,635 217,677 58,089 183371SWIFT/NIBBS Charges 9,269 27,582 3,512 9980Courier charges 2,668 9,537 3,649 11283Local and foreign travels 26,213 67,073 13,211 37084Printing & Stationaries 27,900 64,856 18,026 51681Repairs and maintenance 137,919 258,647 55,889 183950Security Related Expenses 20,642 59,910 18,209 49934Money and other Insurance 6,272 19,940 7,449 30712NDIC Premium 101,993 289,913 68,721 201930Fuel Expense 27,904 80,970 5,533 15911Service contract (HR and Admin) 82,920 355,022 92,002 270449Data Recovery & IT Related Expenses 272 1,051 2,559 48124Newspaper, Magazine & Periodicals 426 1,261 3,986 5897Entertainment 3,531 9,977 897 3629Regulatory Expenses 1,008 11,144 2,390 8537Sundry expenses 55,232 316,794 152,135 388697Cash shortage W/O 564 1,851 307 977Listing Expenses 809 3,264 - Industry Certification 7,125 21,480 2,390 8537

577,372 1,821,365 510,979 1,515,202


32 Impairment Provisions

32 (i) PROVISION FOR IMPAIRMENT OF FINANCING AND INVESTMENT

(i) Impairment Loss Sep-19Credit N'000Murabaha 489,062Musharaka - Istisna - Ijarah 154,509Qard Hassan - Salam - Off Balance Sheet 0Total 643,571Impairment WriteBack - Net impairment charges for the year 643,571

(ii) impairment by Products (IFRS) 2019

Murabaha Qard Hassan Istisina IjaraOff Balance Sheet Item Other Assets Total

N'000 N'000 N'000 N'000 N'000 N'000 N'000

Opening as at 1 January 2019 1,724,308 2,649 11,827 55,683 11,914 40,950 1,847,331 Re-classification/ Provision no Longer Required - - - - - -

Impairment for the current year 489,062 - - 154,509 - 26,578 670,150 Balance at 30 September 2019 2,213,369 2,649 11,827 210,193 11,914 67,528 2,517,481Notes 7 10 8 9 11 15

257,075 510 - 57,965 - 181,804 - - 26,578


33 Earnings per share

Basic earnings per share

Profit attributable to ordinary shareholders9 Month Ended


Sept 2018N'000 N'000

Profit for the period 1,250,214 161,691 Profit attributable to ordinary shareholders 1,250,214 161,691

Weighted average number of ordinary shares9 Month Ended


Sept 2018In Thousand In Thousand

Issued ordinary shares at 1 January 29,464,249 29,464,250 Effect of share options exercised - Weighted average number of ordinary shares at 30 Sept 2019 29,464,249 29,464,250

Basic and diluted earnings per share (Kobo) 4.24 kobo .55 kobo

Basic earnings per share of 4.24 kobo (2018:-0.55kobo) is based on the profit of N1,470.84million (9 Month Ended Sept 2018: N161.69million) attributable to shareholders with ordinary shares of 29,464,249,300 (2018:-29,464,250,000)


35 CONTINGENT LIABILITIES AND COMMITMENTS 9 Months 12 Months Sep-19 Dec-18

(i) Contingent Liabilities N'000 N'000

Advanced Payment Guarantees 6,488,170 7,303,629Letters of Credit 3,166,919 5,701,475Bonds and Guarantees 3,146,248 4,456,898Wakala Guarantee 11,491,729 11,648,416

24,293,066 29,110,417

(ii) Capital Commitments

(iv) Guarantees and other Financial Commitments

There were no capital commitments at the end of the reporting period of 30 September 2019.

The Directors are of the opinion that all known liabilities and commitments which are relevant inassessing the company's financial position, financial performance and cash flows have been taken intoaccount in the preparation of these financial statements.

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