TAJBank Limited has reported a remarkable 84% surge in total assets for its 2024 financial year, with assets rising from N518.33 billion in 2023 to N953.10 billion.
In a statement released on Monday, the Abuja-based non-interest bank – which commenced operations just five years ago – also announced a dividend payout of 20 kobo per share to shareholders, marking its third consecutive dividend declaration since inception. The bank noted that this dividend ranks among the highest payout ratios relative to share value within Nigeria’s banking industry in the period under review.
Robust Growth in Deposits and Earnings
Customer deposits grew impressively by 89%, climbing from N369.33 billion in 2023 to N696.34 billion in 2024. Gross earnings also soared by 80% year-on-year to N75.5 billion, up from N43.2 billion recorded the previous year.
Additionally, total gross income rose 72% to N467.38 billion compared to N271.92 billion in 2023, while profit before tax increased by 61%, reaching N18.2 billion from N11.3 billion. However, the bank did not disclose its net profit or cost-to-income ratio in the announcement.
Dividend Payout Amid Industry Challenges
The dividend distribution comes despite ongoing macroeconomic challenges, including foreign exchange volatility, regulatory shifts, and the Central Bank of Nigeria’s new recapitalisation directive for banks.
Hamid Joda, TAJBank’s CEO, emphasised that the decision to pay dividends reflects the bank’s consistent commitment to shareholder value.
“With the payment of our third dividend within five years of operations, TAJBank’s Board and management have again demonstrated that investors’ interests remain a priority as we maintain our leadership in Nigeria’s non-interest banking sector. Our performance attests to proactive strategies and innovative service delivery, and we assure our investors that their interests will always remain paramount,” Joda stated.
Sherif Idi, Co-Founder and Executive Director, described the dividend as “historic” and encouraged shareholders to support the bank’s ongoing expansion plans.
Strong Positioning in Non-Interest Banking
TAJBank’s asset growth positions it among Nigeria’s mid-sized banks, edging closer to the N1 trillion milestone. Its growing deposit and earnings base signals increasing acceptance of non-interest banking services, especially among retail customers and SMEs.
Operating under Islamic banking principles compliant with Shari’ah, TAJBank is one of the few licensed non-interest banks in Nigeria, alongside peers like Jaiz Bank.
Fitch Ratings projects further expansion of Nigeria’s Islamic finance sector between late 2025 and 2026, driven by rising sovereign sukuk issuances, higher paid-in capital requirements, and regulatory efforts to deepen the industry. Fitch noted that as of end-2024, assets of non-interest banks in Nigeria grew by 110% year-on-year, fuelled by substantial increases in deposits and loans, both of which more than doubled.
Credit: Nairametrics
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