S U S TA I N A B I L I T Y R E P O RT 2 0 2 0

G R O W I N G

S U S T A I N A B L Y

w w w. j a i z b a n k p l c . c o m

S U S TA I N A B I L I T Y R E P O RT 2 0 1 6

G R O W I N G

SUSTAINABLY

1. About this Report 2

2. Assurance 2

3. Statement of External Independent Assurance 3

4. Introduction - Jaiz Bank Overview 4

5. Corporate Philosohpy 5

6. Products and Services Offering 6

7. Jaiz Bank Network 7

8. Financial Synopsis 8

9. Statement of Financial Position 9

10. Chairman’s Statement 10

11. Chief Executive’s Message 11

12. Key Highlights 13

13. Targets For 2021 14

14. Targets Implementation 21

15. Pictorial Evidence of Our Rural Women Empowerment 22

16. Commitment to UNEP Fi Principles for Responsible Banking 23

17. Development Goals (UN -SDGS) 25

18. Alignment With The Paris Climate Agreement: 28

19. Procedures to Ensure Implementation of 2021 Sustainability Target. 28

20. Corporate Governance 30

21. Listening to Our Stakeholders 32

22. Materiality Analysis 34

23. Our Sustainability Framework 36

24. Appendix 38

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 01

Contents

1. About this Report 2

2. Assurance 2

3. Statement of External Independent Assurance 3

4. Introduction - Jaiz Bank Overview 4

5. Corporate Philosohpy 5

6. Products and Services Offering 6

7. Jaiz Bank Network 7

8. Financial Synopsis 8

9. Statement of Financial Position 9

10. Chairman’s Statement 10

11. Chief Executive’s Message 11

12. Key Highlights 13

13. Targets For 2021 14

14. Targets Implementation 21

15. Pictorial Evidence of Our Rural Women Empowerment 22

16. Commitment to UNEP Fi Principles for Responsible Banking 23

17. Development Goals (UN -SDGS) 25

18. Alignment With The Paris Climate Agreement: 28

19. Procedures to Ensure Implementation of 2021 Sustainability Target. 28

20. Corporate Governance 30

21. Listening to Our Stakeholders 32

22. Materiality Analysis 34

23. Our Sustainability Framework 36

24. Appendix 38

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 01

Contents

t is our pleasure to present to you this report, being Jaiz Bank's maiden Sustainability Report since Ibecoming a Signatory to Principles for Responsible Banking (PRB) of UNEP-FI.

This report reflects the scope of work done by the Bank towards discharging its sustainability obligations as a signatory of UNEP-FI and the Nigeria Sustainable Banking Principles (NSBP). The report was prepared using the Global Reporting Standard (GRI Standards: Core option). We have also referred to other guidelines, including the GRI G4 Financial Services Sector Disclosures and the United Nations Global Compact (UNGC) principles, which regulate sustainable business practices globally.

AssuranceAs a mark of our commitment to sustainability, we have opted to use external assurance right from this maiden report even though it is not an absolute requirement under all the standards and conventions.

The report equally passed through our internal assurance process in which all internal stakeholders involved revised and approved content(s) related to their respective departments.

The financial highlights as well as statements in this report have been independently audited by our external auditors, Messrs. Ahmed Zakari & Co. Chartered Accountants.

About this Report

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 03 SUSTAINABILITY REPORT 2020 02 - GROWING SUSTAINABLY

Jaiz Bank Plc (“Jaiz” or “the Company”) appointed Marble Capital Limited (“Marble Capital”) to undertake Independent Assurance of Sustainability Disclosures reported in the Company's 2020 Sustainability Report (“2020 Report”).

Our Scope of WorkThe Scope of the Assurance is strictly limited to the contents of the 2020 Report for the year ended 31 Dec 2021 and an assessment of the assertions made. The information contained in the 2020 Report and its presentation are the responsibilities of the Directors and the Management of the Company. Marble Capital is not responsible for the preparation of this 2020 Report.

Summary of WorkMarble Capital performed its work in accordance with the internationally recognized guidelines for accuracy and reliability and the Levels of Assurance. The relevant reporting requirements of the following assessment criteria were used in undertaking the work: GRI-G4 Sustainability Reporting Guidelines, Nigerian Sustainable Banking Principles (NSBP), UNEP FI's Principles for Responsible Banking (PRB), review of the content of the Report in relation to Jaiz Bank's organisational targets and ambitions and identification of areas for improvement.

In assuring the Company's sustainability practices, a multi-disciplinary team of sustainability and assurance practitioners performed work at the corporate level. We investigated the systems,

Statement of External Independent Assurance

structures and processes through desktop research, interviews and review of supporting documents to arrive at our conclusions.

Our Engagement Include:Interviews with key managerial staff, including the Chief Strategy Officer, Digital Marketing Officer, Head of Strategy Planning and Development, Head of General Services Department, Operation Risk Officer, Strategy Planning Officer, General Services Officer, and Head Strategy Implementation.

Review of the following supporting documents: Impact Analysis, Green Account Initiative, Action Plans for Key Departments, Breakdown of Key Portfolio Analysis, Pictures from Impact Events, and other relevant documentation.

We planned our work to obtain all the information and explanations needed to provide a basis for our assurance conclusions.

ConclusionBased on our review, the information provided in the 2020 Report is adjudged to be reliable and fairly stated in accordance with the reporting criteria of the Nigerian Sustainable Banking Principles, UNEP FI's Principles for Responsible Banking, and the GRI-G4 Sustainability Reporting Guidelines.

Marble Capital Limited.

Akeem OyewaleChief Executive Officer29 March, 2021

t is our pleasure to present to you this report, being Jaiz Bank's maiden Sustainability Report since Ibecoming a Signatory to Principles for Responsible Banking (PRB) of UNEP-FI.

This report reflects the scope of work done by the Bank towards discharging its sustainability obligations as a signatory of UNEP-FI and the Nigeria Sustainable Banking Principles (NSBP). The report was prepared using the Global Reporting Standard (GRI Standards: Core option). We have also referred to other guidelines, including the GRI G4 Financial Services Sector Disclosures and the United Nations Global Compact (UNGC) principles, which regulate sustainable business practices globally.

AssuranceAs a mark of our commitment to sustainability, we have opted to use external assurance right from this maiden report even though it is not an absolute requirement under all the standards and conventions.

The report equally passed through our internal assurance process in which all internal stakeholders involved revised and approved content(s) related to their respective departments.

The financial highlights as well as statements in this report have been independently audited by our external auditors, Messrs. Ahmed Zakari & Co. Chartered Accountants.

About this Report

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 03 SUSTAINABILITY REPORT 2020 02 - GROWING SUSTAINABLY

Jaiz Bank Plc (“Jaiz” or “the Company”) appointed Marble Capital Limited (“Marble Capital”) to undertake Independent Assurance of Sustainability Disclosures reported in the Company's 2020 Sustainability Report (“2020 Report”).

Our Scope of WorkThe Scope of the Assurance is strictly limited to the contents of the 2020 Report for the year ended 31 Dec 2021 and an assessment of the assertions made. The information contained in the 2020 Report and its presentation are the responsibilities of the Directors and the Management of the Company. Marble Capital is not responsible for the preparation of this 2020 Report.

Summary of WorkMarble Capital performed its work in accordance with the internationally recognized guidelines for accuracy and reliability and the Levels of Assurance. The relevant reporting requirements of the following assessment criteria were used in undertaking the work: GRI-G4 Sustainability Reporting Guidelines, Nigerian Sustainable Banking Principles (NSBP), UNEP FI's Principles for Responsible Banking (PRB), review of the content of the Report in relation to Jaiz Bank's organisational targets and ambitions and identification of areas for improvement.

In assuring the Company's sustainability practices, a multi-disciplinary team of sustainability and assurance practitioners performed work at the corporate level. We investigated the systems,

Statement of External Independent Assurance

structures and processes through desktop research, interviews and review of supporting documents to arrive at our conclusions.

Our Engagement Include:Interviews with key managerial staff, including the Chief Strategy Officer, Digital Marketing Officer, Head of Strategy Planning and Development, Head of General Services Department, Operation Risk Officer, Strategy Planning Officer, General Services Officer, and Head Strategy Implementation.

Review of the following supporting documents: Impact Analysis, Green Account Initiative, Action Plans for Key Departments, Breakdown of Key Portfolio Analysis, Pictures from Impact Events, and other relevant documentation.

We planned our work to obtain all the information and explanations needed to provide a basis for our assurance conclusions.

ConclusionBased on our review, the information provided in the 2020 Report is adjudged to be reliable and fairly stated in accordance with the reporting criteria of the Nigerian Sustainable Banking Principles, UNEP FI's Principles for Responsible Banking, and the GRI-G4 Sustainability Reporting Guidelines.

Marble Capital Limited.

Akeem OyewaleChief Executive Officer29 March, 2021

Our Vision, Mission,,,,,

Our - To be the clear leader in Ethical Banking in Sub-Saharan AfricaVISION

Our - Making life better through Ethical FinanceMISSION

Our BUSINESS PHILOSOPHYOur philosophy is to deliver world class Sharia compliant financial services to our clientele irrespective of class, creed, race or religious belief and to contribute to the socio-economic development of the society.

Our CORE VALUES Responsibility Entrepreneurship Simplicity Partnership Excellence Customer Focus Trust

Our RATINGSEntities Credit Ratings Long term Outlook

Agusto & Co Bbb - √ Stable

GCR BB+ √ Stable

IIRA BBB √ Stable

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 05 SUSTAINABILITY REPORT 2020 04 -GROWING SUSTAINABLY

aiz Bank Plc, a Non-Interest (Islamic) Financial Institution was incorporated on 1st of April 2003 as JJaiz International Plc prior to obtaining a banking license on the 11th of November 2011 from the Central Bank of Nigeria (CBN) to operate as a Regional Bank. By this license, it became the

premier Non-Interest Bank in Nigeria, and commenced operations on 6th January 2012 with a N6 billion capital base and 3 branches in Abuja, Kano, and Kaduna. In June 2016, the Bank got its National license and subsequently commenced expansion to all regions of the country.

The products and services offered cut across personal banking, corporate banking, and MSME banking. The Bank's customer base comprises of individuals, small businesses, rural women, corporates, public sector, institutional investors, non-profit organizations, and international clients. Over the years, the Bank has expanded to different parts of the country, and continued to thrive in making lives better through ethical finance. With a total of 40 branches, over 8 Financial Inclusion Centers, and more than 500,000 customers, the Bank's critical parameters for growth such as customer deposits, branch network, and profitability have continued to grow year–on–year since inception.

Consequently, the Bank was quoted as a public company on the Nigerian Stock Exchange (NSE) with a balance sheet size of N87.312billion. Amidst the pandemic, the balance sheet size increased to N233.60billion as at December 2020. Similarly, the Bank's deposit base has grown significantly to N175.51billion as at December 2020 from the N68.12billion when we became public.

Ownership StructureMajority shareholders of the Bank remain individuals, with over 80% ownership. We equally have foreign investors and a few state government funds invested in the Bank.

The ownership structure as at December 2020 is as indicated below:

Jaiz Bank Overview Introduction -

Ownership Stucture

Private Nigerian Shareholders

Foreigners

State Government

80.44%

11.05%

8.51%

Our Vision, Mission,,,,,

Our - To be the clear leader in Ethical Banking in Sub-Saharan AfricaVISION

Our - Making life better through Ethical FinanceMISSION

Our BUSINESS PHILOSOPHYOur philosophy is to deliver world class Sharia compliant financial services to our clientele irrespective of class, creed, race or religious belief and to contribute to the socio-economic development of the society.

Our CORE VALUES Responsibility Entrepreneurship Simplicity Partnership Excellence Customer Focus Trust

Our RATINGSEntities Credit Ratings Long term Outlook

Agusto & Co Bbb - √ Stable

GCR BB+ √ Stable

IIRA BBB √ Stable

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 05 SUSTAINABILITY REPORT 2020 04 -GROWING SUSTAINABLY

aiz Bank Plc, a Non-Interest (Islamic) Financial Institution was incorporated on 1st of April 2003 as JJaiz International Plc prior to obtaining a banking license on the 11th of November 2011 from the Central Bank of Nigeria (CBN) to operate as a Regional Bank. By this license, it became the

premier Non-Interest Bank in Nigeria, and commenced operations on 6th January 2012 with a N6 billion capital base and 3 branches in Abuja, Kano, and Kaduna. In June 2016, the Bank got its National license and subsequently commenced expansion to all regions of the country.

The products and services offered cut across personal banking, corporate banking, and MSME banking. The Bank's customer base comprises of individuals, small businesses, rural women, corporates, public sector, institutional investors, non-profit organizations, and international clients. Over the years, the Bank has expanded to different parts of the country, and continued to thrive in making lives better through ethical finance. With a total of 40 branches, over 8 Financial Inclusion Centers, and more than 500,000 customers, the Bank's critical parameters for growth such as customer deposits, branch network, and profitability have continued to grow year–on–year since inception.

Consequently, the Bank was quoted as a public company on the Nigerian Stock Exchange (NSE) with a balance sheet size of N87.312billion. Amidst the pandemic, the balance sheet size increased to N233.60billion as at December 2020. Similarly, the Bank's deposit base has grown significantly to N175.51billion as at December 2020 from the N68.12billion when we became public.

Ownership StructureMajority shareholders of the Bank remain individuals, with over 80% ownership. We equally have foreign investors and a few state government funds invested in the Bank.

The ownership structure as at December 2020 is as indicated below:

Jaiz Bank Overview Introduction -

Ownership Stucture

Private Nigerian Shareholders

Foreigners

State Government

80.44%

11.05%

8.51%

Our Locations

1

2

1

6

1

4

5

3

1

1

2

4

3

1

1

1

1

1

1

Jaiz Financial Inclusion Centers:Eight Jaiz Financial Inclusion Centers ( JAFIC) purposely situated at different local governments in Katsina State, to drive Financial Inclusion, targeting women economic empowerment in the remote communities of the Country.

Agency Banking Networks: A total of 2,256 Active Agent locations have been established so far, to drive financial inclusion across the nation.

Product and Service Offering

1.Current Account

(Qard)

2.Savings Account

(Mudarabah)

3.Jaiz Kids Account

(Mudarabah)

4.JAPSA Term

Deposit Account

(Mudarabah)

5. Domiciliary

Account

6. Jaiz Auto Finance

7. Jaiz Home

Finance (Ijara wa

Iqtina)

1.Jaiz Wakala Investment

2.Jaiz Auto Finance

3.Jaiz Household Appliances

Finance

4. Jaiz General Consumer

Finance

5.Jaiz Home Finance (Ijara wa

Iqtina)

6. Ijara Service

7. Lease to Own (Ijara wa

Iqtina Corporate) Finance

8. Jaiz Ijara Service Corporate

9. Equity-based Finance

(Musharaka)

10. Bonds and Guarantee

(Wakala/Kafala)

11. MSME Financing

12. Working Capital Financing (Murabaha)

13. Project Financing/Construction (Istisna')

1. Import Finance

2. Export Finance

1.Commercial

Agriculture Credit

Scheme (CACS)

2.Differentiated

Cash Reserve

Requirement

(RSSF-DCRR)

3. Special

Agricultural

Support Scheme

1. Jaiz MSME

Financing-Bronze

2. Jaiz MSME

Financing-Silver

3. Jaiz MSME

Financing-Gold

4. Jaiz MSME

Financing-

Diamond

5. Special MSME

support facility

6. Special target

support

Product

PersonalBanking

CorporateBanking

Trade Finance

AgriculturalFinance

MSME

e-Banking/Channels

State Present

S/N State Count

1. Adamawa 12. Bauchi 23. Borno 14. FCT 65. Gombe 16. Kaduna 47. Kano 58. Katsina 39. Kebbi 1

10. Kogi 111. Kwara 112. Lagos 413. Nassarawa 114. Osun 115. Oyo 316. Plateau 117. Rivers 118. Sokoto 119. Zamfara 1Grand Total 40

Jafic Locations Local Government Area

Mai'dua Center Mai'adua LGA, Katsina

Baure Center Baure LGA, Katsina Zango Center Zango LGA, Katsina

Daura Center Daura LGA, KatsinaKano Virtual Center – Kano 2 Fagge LGA, Kano

Oyo Virtual Center - Ibadan Ibadan North West LGA, IbadanMaiduguri Virtual Center- Maiduguri Maiduguri Metropolitan LGA, MaiduguriKebbi Virtual Center- Birnin Kebbi Birnin Kebbi LGA, Birnin Kebbi

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 07 SUSTAINABILITY REPORT 2020 06 GROWING SUSTAINABLY -

QUICK BANKING...all the way

ADECHI AYO BALARABE

VALIDTHRU: 00/00

0000 0000 0000 0066

DEBIT

CARDS ATM MOBILEBANKING

USSDPOS

INTERNET BANKING

Our Locations

1

2

1

6

1

4

5

3

1

1

2

4

3

1

1

1

1

1

1

Jaiz Financial Inclusion Centers:Eight Jaiz Financial Inclusion Centers ( JAFIC) purposely situated at different local governments in Katsina State, to drive Financial Inclusion, targeting women economic empowerment in the remote communities of the Country.

Agency Banking Networks: A total of 2,256 Active Agent locations have been established so far, to drive financial inclusion across the nation.

Product and Service Offering

1.Current Account

(Qard)

2.Savings Account

(Mudarabah)

3.Jaiz Kids Account

(Mudarabah)

4.JAPSA Term

Deposit Account

(Mudarabah)

5. Domiciliary

Account

6. Jaiz Auto Finance

7. Jaiz Home

Finance (Ijara wa

Iqtina)

1.Jaiz Wakala Investment

2.Jaiz Auto Finance

3.Jaiz Household Appliances

Finance

4. Jaiz General Consumer

Finance

5.Jaiz Home Finance (Ijara wa

Iqtina)

6. Ijara Service

7. Lease to Own (Ijara wa

Iqtina Corporate) Finance

8. Jaiz Ijara Service Corporate

9. Equity-based Finance

(Musharaka)

10. Bonds and Guarantee

(Wakala/Kafala)

11. MSME Financing

12. Working Capital Financing (Murabaha)

13. Project Financing/Construction (Istisna')

1. Import Finance

2. Export Finance

1.Commercial

Agriculture Credit

Scheme (CACS)

2.Differentiated

Cash Reserve

Requirement

(RSSF-DCRR)

3. Special

Agricultural

Support Scheme

1. Jaiz MSME

Financing-Bronze

2. Jaiz MSME

Financing-Silver

3. Jaiz MSME

Financing-Gold

4. Jaiz MSME

Financing-

Diamond

5. Special MSME

support facility

6. Special target

support

Product

PersonalBanking

CorporateBanking

Trade Finance

AgriculturalFinance

MSME

e-Banking/Channels

State Present

S/N State Count

1. Adamawa 12. Bauchi 23. Borno 14. FCT 65. Gombe 16. Kaduna 47. Kano 58. Katsina 39. Kebbi 1

10. Kogi 111. Kwara 112. Lagos 413. Nassarawa 114. Osun 115. Oyo 316. Plateau 117. Rivers 118. Sokoto 119. Zamfara 1Grand Total 40

Jafic Locations Local Government Area

Mai'dua Center Mai'adua LGA, Katsina

Baure Center Baure LGA, Katsina Zango Center Zango LGA, Katsina

Daura Center Daura LGA, KatsinaKano Virtual Center – Kano 2 Fagge LGA, Kano

Oyo Virtual Center - Ibadan Ibadan North West LGA, IbadanMaiduguri Virtual Center- Maiduguri Maiduguri Metropolitan LGA, MaiduguriKebbi Virtual Center- Birnin Kebbi Birnin Kebbi LGA, Birnin Kebbi

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 07 SUSTAINABILITY REPORT 2020 06 GROWING SUSTAINABLY -

QUICK BANKING...all the way

ADECHI AYO BALARABE

VALIDTHRU: 00/00

0000 0000 0000 0066

DEBIT

CARDS ATM MOBILEBANKING

USSDPOS

INTERNET BANKING

The Bank achieved a net profit of N2.7b compared to N2.4b in 2019, indicating a healthy increase of 14% notwithstanding the headwinds occasioned by the Covid-19 pandemic in 2020. Our operating income and profitability improved significantly for the following reasons:

Ÿ Major strategic focus on new client acquisition.Ÿ Effective liquidity management, with focus on Sukuk.Ÿ Optimal use of the Balance Sheet and a dramatic reduction in credit losses.Ÿ Strategic focus on geographic coverage, product execution and delivery.

These results were realized despite the difficult trading environment across core markets caused by geopolitical uncertainties, and a general slowdown in global economic growth due to the global pandemic which changed the narrative of business models and plan. The Bank indeed remained proactive in the management of its portfolio, and keeping credit costs in check.

Our strategy to remain well-placed, while managing our progress for the financial year 2021 focuses on a client base growth which entails; cross-selling of trade finance and treasury products, and; investments in people, processes and products across the Bank.

Year 2020 Performance Highlights

Financial Synopsis

Statement of Financial Position 31-Dec-2020 31-Dec-2019 Changes N'Million N'Million (%)Total Assets 233,596 167,273 40%Financing & Investment Assets 165,995 107,775 54%Deposits 175,513 127,193 38%Share Capital 14,732 14,732 0%Total Equity 17,845 15,552 15%

Income Statement Gross Earnings 19,614 14,715 33%Profit Before Taxation (PBT) 3,066 2,110 45%Taxation (163) 333 (149%)Profit After Taxation (PAT) 2,903 2,443 19%

Ratios 31-Dec-2020 31-Dec-2019 ChangesCost to Income 76.04% 80.21% 5%Return on Assets 1.31% 1.26% 4%Return on Equity 17.18% 13.57% 27%Capital Adequacy 20.02% 16.44% 22%Liquidity 43.06% 33.60% 28%

Others 31-Dec-2020 31-Dec-2019 Changes Number Number (%) Earning Per Share 9.85 kobo 8.29 kobo 19%Proposed Dividend 3kobo 3kobo 0%Number of Branches/Offices 40 38 5%Number of Staff 609 562 9%Number of Shares in Issue (Million) 29,464 29,464 0%

The Bank's Balance Sheet increased by N66.32billion from 2019 figures, closing at N233.60billon in 2020. On a gross basis, the Bank booked new assets totaling N58.22billion. However, these were offset by repayments and voluntary asset churn.

Income StatementTotal operating income amounted to N19.61billion, with an increment of N4.89billion higher than year 2019 amount of N14.71billion. The proportion of fee-to-margin income continued to be encouraging. The level of customer-related fee income equally remained encouraging compared with historical standards, as a result of our focus on increased clientele. Headline total expenses rose from N8.5billion in 2019 to N9.8billion, an increase of N1.3billion.

Sources and Applications of Financial ResourcesThe total equity of the Bank grew to N17.85billion compared to N15.55billon in 2019. Based on healthy capitalization ratios, the Board proposed a dividend of N 0.03 per share to the Shareholders of the Bank.

LiquidityJaiz Bank PLC historically retained robust liquidity and this continued in 2020. Our healthy liquidity results from core customers with passionate loyalty because of niche liability products unmatched by other Islamic banks, and continued strong support from our Shareholders.

Capital AdequacyThe Bank abides and comply with Central Bank of Nigeria (CBN) regulations and directives covering Islamic banking transactions and practices. Our capital adequacy ratio was 20.02% at the end of 2020. This level significantly exceeds the 10% threshold stipulated by the CBN.

Statement of Financial Position

TotalAssets (N’Million )

Total Equity (N’Million )

PBT (N’Million )

Liquidity (%)

CAR (%)

233,596

17,845

3,066

20.02

43.06

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 09 SUSTAINABILITY REPORT 2020 08 -GROWING SUSTAINABLY

The Bank achieved a net profit of N2.7b compared to N2.4b in 2019, indicating a healthy increase of 14% notwithstanding the headwinds occasioned by the Covid-19 pandemic in 2020. Our operating income and profitability improved significantly for the following reasons:

Ÿ Major strategic focus on new client acquisition.Ÿ Effective liquidity management, with focus on Sukuk.Ÿ Optimal use of the Balance Sheet and a dramatic reduction in credit losses.Ÿ Strategic focus on geographic coverage, product execution and delivery.

These results were realized despite the difficult trading environment across core markets caused by geopolitical uncertainties, and a general slowdown in global economic growth due to the global pandemic which changed the narrative of business models and plan. The Bank indeed remained proactive in the management of its portfolio, and keeping credit costs in check.

Our strategy to remain well-placed, while managing our progress for the financial year 2021 focuses on a client base growth which entails; cross-selling of trade finance and treasury products, and; investments in people, processes and products across the Bank.

Year 2020 Performance Highlights

Financial Synopsis

Statement of Financial Position 31-Dec-2020 31-Dec-2019 Changes N'Million N'Million (%)Total Assets 233,596 167,273 40%Financing & Investment Assets 165,995 107,775 54%Deposits 175,513 127,193 38%Share Capital 14,732 14,732 0%Total Equity 17,845 15,552 15%

Income Statement Gross Earnings 19,614 14,715 33%Profit Before Taxation (PBT) 3,066 2,110 45%Taxation (163) 333 (149%)Profit After Taxation (PAT) 2,903 2,443 19%

Ratios 31-Dec-2020 31-Dec-2019 ChangesCost to Income 76.04% 80.21% 5%Return on Assets 1.31% 1.26% 4%Return on Equity 17.18% 13.57% 27%Capital Adequacy 20.02% 16.44% 22%Liquidity 43.06% 33.60% 28%

Others 31-Dec-2020 31-Dec-2019 Changes Number Number (%) Earning Per Share 9.85 kobo 8.29 kobo 19%Proposed Dividend 3kobo 3kobo 0%Number of Branches/Offices 40 38 5%Number of Staff 609 562 9%Number of Shares in Issue (Million) 29,464 29,464 0%

The Bank's Balance Sheet increased by N66.32billion from 2019 figures, closing at N233.60billon in 2020. On a gross basis, the Bank booked new assets totaling N58.22billion. However, these were offset by repayments and voluntary asset churn.

Income StatementTotal operating income amounted to N19.61billion, with an increment of N4.89billion higher than year 2019 amount of N14.71billion. The proportion of fee-to-margin income continued to be encouraging. The level of customer-related fee income equally remained encouraging compared with historical standards, as a result of our focus on increased clientele. Headline total expenses rose from N8.5billion in 2019 to N9.8billion, an increase of N1.3billion.

Sources and Applications of Financial ResourcesThe total equity of the Bank grew to N17.85billion compared to N15.55billon in 2019. Based on healthy capitalization ratios, the Board proposed a dividend of N 0.03 per share to the Shareholders of the Bank.

LiquidityJaiz Bank PLC historically retained robust liquidity and this continued in 2020. Our healthy liquidity results from core customers with passionate loyalty because of niche liability products unmatched by other Islamic banks, and continued strong support from our Shareholders.

Capital AdequacyThe Bank abides and comply with Central Bank of Nigeria (CBN) regulations and directives covering Islamic banking transactions and practices. Our capital adequacy ratio was 20.02% at the end of 2020. This level significantly exceeds the 10% threshold stipulated by the CBN.

Statement of Financial Position

TotalAssets (N’Million )

Total Equity (N’Million )

PBT (N’Million )

Liquidity (%)

CAR (%)

233,596

17,845

3,066

20.02

43.06

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 09 SUSTAINABILITY REPORT 2020 08 -GROWING SUSTAINABLY

Chairman’s Statement

We are also strengthening our international alliances on this sustainabi l i ty journey with global forums such as the UNEP FI and UK-IFC.

t is with great honor that I present to you, the year 2020 maiden edition of the stand-alone Isustainability report for Jaiz Bank Plc. As an ethical Non-Interest Financial Institution, we play a pivotal role in providing innovative solutions to the significant social, economic and environmental

challenges the world faces through our business transactions and business operations, especially in the locations where we operate. We understand the vital importance of finding ways to support sustainable growth that benefits economies, the environment and society through our products and services, as well as the need to uphold good governance.

Because we appreciate the collaborative efforts towards achieving common goals, we are partnering with other banks and financial institutions within the country to drive the successful implementation of CBN- Nigerian Sustainable Banking Principles. We are also strengthening our international alliances on this sustainability journey with global forums such as the UNEP FI and UK-IFC.

Jaiz Bank Plc in fulfilling our commitment to reducing our environmental and social footprints introduced the Green Initiative through recycling of items internally, and partnerships with recycling companies to roll out the Green Account Initiative. The initiative, which is encouraging recycling, while addressing waste management aims to not only improve upon the environment, but also to positively impact on the social and economic spheres through decent job creation, and economic empowerment. With these initiatives, we have and will continue to address several Sustainable

Development Goals.We remain focus on delivering sustainable values to our shareholders, and all our stakeholders through our conscious efforts towards implementing the Principles that we have signed on to.Thank you.

Alh. (Dr.) Umar Abdul Mutallab, FCA, CONChairman, Board of Directors

Managing Directors Statement

One-Farmer-One-Hectare p r o j e c t t o s u p p o r t smallholder farmers with n a nc i ng , a c c e ss t o market and extension services to improve yield.

eing a key player in the banking industry, specifically the Islamic banking sector with Shariatic Bfilters as our base standards, sustainability is an integral part of our business, and we understand that sustainable finance is the key for a longer-term success. At Jaiz Bank Plc, we

continue to run our businesses and operations in a responsible manner, by enhancing the positive impacts to the Social, Environmental and Economic spheres of the communities where we operate, while ensuring that we minimize the negative impacts.

We are fully committed to promoting sustainability practices in our day-to-day business transactions and business operations. Our Mission; “Making life better through ethical finance” centers on treating all our stakeholders fairly and justly. In line with this, our business strategy is aligned with the Sustainable Development Goals (SDGs), having some of our products such as our Jaiz Financial Inclusion Centers ( JAFICs), targeted to providing financing and other benefits such as health insurance to women and vulnerable groups, the One-Farmer-One-Hectare project to support smallholder farmers with financing, access to market and extension services to improve yield. These and other projects are specifically designed to drive sustainability, and form part of the essential steps we are taking to effectively align every aspect of our business as well as operations to the SDGs.

Our strength towards achieving our targets is driven from a strong governance structure, an encouraging Board of Directors, and dedicated employees.As we progress on this sustainability journey, we assure to keep building a strong culture that will create the positive impact we desire not just for today but for the future generations.

Yours faithfully.

Hassan Usman, FCA, FCIBManaging Director/Chief Executive

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 11 SUSTAINABILITY REPORT 2020 10 GROWING SUSTAINABLY -

Chairman’s Statement

We are also strengthening our international alliances on this sustainabi l i ty journey with global forums such as the UNEP FI and UK-IFC.

t is with great honor that I present to you, the year 2020 maiden edition of the stand-alone Isustainability report for Jaiz Bank Plc. As an ethical Non-Interest Financial Institution, we play a pivotal role in providing innovative solutions to the significant social, economic and environmental

challenges the world faces through our business transactions and business operations, especially in the locations where we operate. We understand the vital importance of finding ways to support sustainable growth that benefits economies, the environment and society through our products and services, as well as the need to uphold good governance.

Because we appreciate the collaborative efforts towards achieving common goals, we are partnering with other banks and financial institutions within the country to drive the successful implementation of CBN- Nigerian Sustainable Banking Principles. We are also strengthening our international alliances on this sustainability journey with global forums such as the UNEP FI and UK-IFC.

Jaiz Bank Plc in fulfilling our commitment to reducing our environmental and social footprints introduced the Green Initiative through recycling of items internally, and partnerships with recycling companies to roll out the Green Account Initiative. The initiative, which is encouraging recycling, while addressing waste management aims to not only improve upon the environment, but also to positively impact on the social and economic spheres through decent job creation, and economic empowerment. With these initiatives, we have and will continue to address several Sustainable

Development Goals.We remain focus on delivering sustainable values to our shareholders, and all our stakeholders through our conscious efforts towards implementing the Principles that we have signed on to.Thank you.

Alh. (Dr.) Umar Abdul Mutallab, FCA, CONChairman, Board of Directors

Managing Directors Statement

One-Farmer-One-Hectare p r o j e c t t o s u p p o r t smallholder farmers with n a nc i ng , a c c e ss t o market and extension services to improve yield.

eing a key player in the banking industry, specifically the Islamic banking sector with Shariatic Bfilters as our base standards, sustainability is an integral part of our business, and we understand that sustainable finance is the key for a longer-term success. At Jaiz Bank Plc, we

continue to run our businesses and operations in a responsible manner, by enhancing the positive impacts to the Social, Environmental and Economic spheres of the communities where we operate, while ensuring that we minimize the negative impacts.

We are fully committed to promoting sustainability practices in our day-to-day business transactions and business operations. Our Mission; “Making life better through ethical finance” centers on treating all our stakeholders fairly and justly. In line with this, our business strategy is aligned with the Sustainable Development Goals (SDGs), having some of our products such as our Jaiz Financial Inclusion Centers ( JAFICs), targeted to providing financing and other benefits such as health insurance to women and vulnerable groups, the One-Farmer-One-Hectare project to support smallholder farmers with financing, access to market and extension services to improve yield. These and other projects are specifically designed to drive sustainability, and form part of the essential steps we are taking to effectively align every aspect of our business as well as operations to the SDGs.

Our strength towards achieving our targets is driven from a strong governance structure, an encouraging Board of Directors, and dedicated employees.As we progress on this sustainability journey, we assure to keep building a strong culture that will create the positive impact we desire not just for today but for the future generations.

Yours faithfully.

Hassan Usman, FCA, FCIBManaging Director/Chief Executive

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 11 SUSTAINABILITY REPORT 2020 10 GROWING SUSTAINABLY -

Key Highlights

654,334 Customers 40 Branches and 167 ATMs1,268 Green Accounts

created

609 Employees

8,349 Rural Womenempowered 250 Green Jobs supported 102, Financially included

726 Credit facilities subjected to E&SG

Segment

Sector (Portfolios Identified)

Sub-Sector Identified Social Impact

Impact Type

Level of Impact

Corporate

Professional

Printing And Publishing

Affordability of strong institutions, peace & stability.

Positive Impact

Availability of employment.

Positive Impact

Corporate

Construction

Specialized Construction Activities

Availability of employment.

Positive Impact

Accessibility of Mobility.

Positive Impact

Quality of Mobility.

Positive Impact

Accessibility of Food.

Positive Impact

Corporate

General Commerce

Domestic Trade

Affordability of Housing

Positive Impact

Availability of Food

Positive Impact

Quality of Food

Positive Impact

Availability of Employment

Positive Impact

Corporate

Oil & Gas

Oil & Gas Services

Availability of employment

Positive Impact

Accessibility of Energy

Positive Impact

Quality of Energy

Negative Impact

Quality of Health & Sanitation (negative effect due to spread of diseases brought by the vessels).

Negative Impact

Availability of Mobility

Positive Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Quality of Water (Affects water consumed by people).

Negative Impact

Availability of employment

Positive Impact

Quality of Health & Sanitation

Negative Impact

The Bank has identified the areas in which it has its most significant positive and negative impact through an impact analysis conducted by the Company's Strategy and Risk Management Department.

Impact And Target Setting

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 14 SUSTAINABILITY REPORT 2020 13 -GROWING SUSTAINABLY

Key Highlights

654,334 Customers 40 Branches and 167 ATMs1,268 Green Accounts

created

609 Employees

8,349 Rural Womenempowered 250 Green Jobs supported 102, Financially included

726 Credit facilities subjected to E&SG

Segment

Sector (Portfolios Identified)

Sub-Sector Identified Social Impact

Impact Type

Level of Impact

Corporate

Professional

Printing And Publishing

Affordability of strong institutions, peace & stability.

Positive Impact

Availability of employment.

Positive Impact

Corporate

Construction

Specialized Construction Activities

Availability of employment.

Positive Impact

Accessibility of Mobility.

Positive Impact

Quality of Mobility.

Positive Impact

Accessibility of Food.

Positive Impact

Corporate

General Commerce

Domestic Trade

Affordability of Housing

Positive Impact

Availability of Food

Positive Impact

Quality of Food

Positive Impact

Availability of Employment

Positive Impact

Corporate

Oil & Gas

Oil & Gas Services

Availability of employment

Positive Impact

Accessibility of Energy

Positive Impact

Quality of Energy

Negative Impact

Quality of Health & Sanitation (negative effect due to spread of diseases brought by the vessels).

Negative Impact

Availability of Mobility

Positive Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Quality of Water (Affects water consumed by people).

Negative Impact

Availability of employment

Positive Impact

Quality of Health & Sanitation

Negative Impact

The Bank has identified the areas in which it has its most significant positive and negative impact through an impact analysis conducted by the Company's Strategy and Risk Management Department.

Impact And Target Setting

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 14 SUSTAINABILITY REPORT 2020 13 -GROWING SUSTAINABLY

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Corporate Agriculture Cash Crop Availability of employment Positive Impact

Availability of Food

Positive Impact

Quality of Health & Sanitation (negative effect on health of humans due to the air pollution as a result of the rice milling).

Negative Impact

Quality of Water (Negatively affects water consumed by people).

Negative Impact

Corporate

Recreation

Commercial Property

Availability of Employment

Positive Impact

Accessibility of Culture & heritage.

Positive Impact

Corporate

Professional

Printing And Publishing

Efficient use of resources

Positive Impact

Corporate

Construction

Specialized Construction Activities

Quality of Biodiversity & ecosystems (Habitat quality and wildlife mortality).

Positive Impact

Quality of Soil.

Negative Impact

Quality Climate (increase temperature and rainfall).

Negative Impact

Corporate

General Commerce

Domestic Trade

Quality of Biodiversity & ecosystems.

Negative Impact

Quality of Soil.

Negative Impact

Quality of Water (Algae blooms, depletion of oxygen).

Negative Impact

Quality of Air Negative Impact

Impact and Target Setting

Corporate Oil & Gas Oil & Gas Services

Quality of Air (Emissions). Negative Impact

Quality of Climate. Negative Impact

Quality of Soil (contamination)

Negative Impact

Quality of Water (contamination due to oil and chemical spill).

Negative Impact

Quality of Biodiversity & Ecosystems (release of ballast which contains aquatic invasive species; ship-strikes on marine megafauna).

Negative Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Quality of Biodiversity & ecosystems.

Negative Impact

Quality of Air (Air pollution).

Negative Impact

Quality of Water (Marine & fresh water discharges).

Negative Impact

Waste

Negative Impact

Corporate

Agriculture

Cash Crop

Quality of Water (Ground water waste, depletion of ground water)

Negative Impact

Efficient use of Waste. Positive Impact

Quality of Air (significant carbon footprint due to milling)

Negative Impact

Corporate

Recreation

Commercial Property

Quality of Waste (Mass accumulation)

Negative Impact

Quality of Air (Carbon emission leading to air pollution).

Negative Impact

Corporate Professional Printing And Publishing

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Impact and Target Setting

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 16 SUSTAINABILITY REPORT 2020 15 - GROWING SUSTAINABLY

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Corporate Agriculture Cash Crop Availability of employment Positive Impact

Availability of Food

Positive Impact

Quality of Health & Sanitation (negative effect on health of humans due to the air pollution as a result of the rice milling).

Negative Impact

Quality of Water (Negatively affects water consumed by people).

Negative Impact

Corporate

Recreation

Commercial Property

Availability of Employment

Positive Impact

Accessibility of Culture & heritage.

Positive Impact

Corporate

Professional

Printing And Publishing

Efficient use of resources

Positive Impact

Corporate

Construction

Specialized Construction Activities

Quality of Biodiversity & ecosystems (Habitat quality and wildlife mortality).

Positive Impact

Quality of Soil.

Negative Impact

Quality Climate (increase temperature and rainfall).

Negative Impact

Corporate

General Commerce

Domestic Trade

Quality of Biodiversity & ecosystems.

Negative Impact

Quality of Soil.

Negative Impact

Quality of Water (Algae blooms, depletion of oxygen).

Negative Impact

Quality of Air Negative Impact

Impact and Target Setting

Corporate Oil & Gas Oil & Gas Services

Quality of Air (Emissions). Negative Impact

Quality of Climate. Negative Impact

Quality of Soil (contamination)

Negative Impact

Quality of Water (contamination due to oil and chemical spill).

Negative Impact

Quality of Biodiversity & Ecosystems (release of ballast which contains aquatic invasive species; ship-strikes on marine megafauna).

Negative Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Quality of Biodiversity & ecosystems.

Negative Impact

Quality of Air (Air pollution).

Negative Impact

Quality of Water (Marine & fresh water discharges).

Negative Impact

Waste

Negative Impact

Corporate

Agriculture

Cash Crop

Quality of Water (Ground water waste, depletion of ground water)

Negative Impact

Efficient use of Waste. Positive Impact

Quality of Air (significant carbon footprint due to milling)

Negative Impact

Corporate

Recreation

Commercial Property

Quality of Waste (Mass accumulation)

Negative Impact

Quality of Air (Carbon emission leading to air pollution).

Negative Impact

Corporate Professional Printing And Publishing

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Impact and Target Setting

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 16 SUSTAINABILITY REPORT 2020 15 - GROWING SUSTAINABLY

Corporate

Construction

Specialized Construction Activities

Economic convergence. Positive Impact

Corporate

General Commerce

Domestic Trade

Economic convergence. Positive Impact

Corporate

Oil & Gas

Oil & Gas Services

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Corporate

Agriculture

Cash Crop

Economic convergence. Positive Impact

Corporate

Recreation

Commercial Property

Economic convergence.

Positive Impact

POSITIVE IMPACT NEGATIVE IMPACTHIGH HIGH

MEDIUM MEDIUM

LOW LOW

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Impact and Target Setting

We have adopted the following major Enhancement Plan in the quest of mitigating the negative impacts indentified above and in setting targets to be achieved:

• Emphasize the relevance of sustainability to customers so as to encourage sustainable practices.• Intimate customers on the need to maintain Sustainability Report.• Bank Relationship Officers to ensure principles of sustainability are enshrined in any new financing.

INDICATOR 2020 Baseline 2021 Year-end

Target

Remark

SOCIAL

T otal Number of Female Employees to Male

146

200

Number of Female Employees recruited in the

year

17

54

We will put in more deliberate effort to recruit and bring onboard more female employees to bridge the current gap.

T otal Number of Female

Employees

that Participated in Empowerment

Programs

0

All female employees

We will be promoting women empowerment in the workplace through various programmes and activities scheduled for female employees of the bank.

% of Employees who utilized their leave days

75%

100%

We have put in place structure to ensure that all employees go on their vacation

when it’s due, so as to get the well-deservedrest.

No of Maternity Leave Days Utilized

1980

2070

We anticipate that a minimum number of 15 female employees will likely

be applying for maternity leave at 3

months leave per person.

No of Paternity Leave Days Utilized

57

60

T otal Number of Staff that Participated in Team

Bonding Activities

0

250

The Covid-19 pandemic prevented us from gettingemployees

to participate in team bonding activities in 2020.

T otal Number of Staff Trained on Sustainability

Practices

0

All employees

We have commenced the training for all internal stakeholders of the Bank, and this is intended to cover required knowledge areas on sustainability practices.

No of Staff Engaged in Volunteer Activities

0

250

We will be deliberate on our focus to engage employees for volunteer activities

around our communities where we operate in the year 2021 and beyond.

T otal Number of Beneficiaries from Financial

Literacy Programs/Workshops

7,300

10,000

The Bank will continue to engage and promote financial literacy at the various communities around the nation

Target for 2021

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 18 SUSTAINABILITY REPORT 2020 17 - GROWING SUSTAINABLY

Corporate

Construction

Specialized Construction Activities

Economic convergence. Positive Impact

Corporate

General Commerce

Domestic Trade

Economic convergence. Positive Impact

Corporate

Oil & Gas

Oil & Gas Services

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Corporate

Oil & Gas

Oil & Gas Upstream

Inclusive, healthy economies.

Positive Impact

Economic convergence. Positive Impact

Corporate

Agriculture

Cash Crop

Economic convergence. Positive Impact

Corporate

Recreation

Commercial Property

Economic convergence.

Positive Impact

POSITIVE IMPACT NEGATIVE IMPACTHIGH HIGH

MEDIUM MEDIUM

LOW LOW

Segment Sector (Portfolios Identified)

Sub-Sector Identified Environmental Impact

Impact Type Level of Impact

Impact and Target Setting

We have adopted the following major Enhancement Plan in the quest of mitigating the negative impacts indentified above and in setting targets to be achieved:

• Emphasize the relevance of sustainability to customers so as to encourage sustainable practices.• Intimate customers on the need to maintain Sustainability Report.• Bank Relationship Officers to ensure principles of sustainability are enshrined in any new financing.

INDICATOR 2020 Baseline 2021 Year-end

Target

Remark

SOCIAL

T otal Number of Female Employees to Male

146

200

Number of Female Employees recruited in the

year

17

54

We will put in more deliberate effort to recruit and bring onboard more female employees to bridge the current gap.

T otal Number of Female

Employees

that Participated in Empowerment

Programs

0

All female employees

We will be promoting women empowerment in the workplace through various programmes and activities scheduled for female employees of the bank.

% of Employees who utilized their leave days

75%

100%

We have put in place structure to ensure that all employees go on their vacation

when it’s due, so as to get the well-deservedrest.

No of Maternity Leave Days Utilized

1980

2070

We anticipate that a minimum number of 15 female employees will likely

be applying for maternity leave at 3

months leave per person.

No of Paternity Leave Days Utilized

57

60

T otal Number of Staff that Participated in Team

Bonding Activities

0

250

The Covid-19 pandemic prevented us from gettingemployees

to participate in team bonding activities in 2020.

T otal Number of Staff Trained on Sustainability

Practices

0

All employees

We have commenced the training for all internal stakeholders of the Bank, and this is intended to cover required knowledge areas on sustainability practices.

No of Staff Engaged in Volunteer Activities

0

250

We will be deliberate on our focus to engage employees for volunteer activities

around our communities where we operate in the year 2021 and beyond.

T otal Number of Beneficiaries from Financial

Literacy Programs/Workshops

7,300

10,000

The Bank will continue to engage and promote financial literacy at the various communities around the nation

Target for 2021

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 18 SUSTAINABILITY REPORT 2020 17 - GROWING SUSTAINABLY

ENVIRONMENTAL

T otal Number of Farmers on “One Farmer One

Hectare Project”

400

3,000 This program targets farmers in the remote communities, through the value chains for poverty reduction and zero hunger, while promoting decent work growth.

T onnes of Waste Recycled through the Bank

0.9MT/month

1.5MT/month

Kg. of GHG emissions -

reduction targets.

1,340

1600 Since we are reducing paper usage, we will be reducing papers recycled ultimately hence we cannot achieve signify can’t fete in this area. However, other items such as PET bottles used by employees will also be recycled.

Energy Consumption-

Electricity (KWHr

2,781,792.40

2,500,000.00 We intend to deploy alternative (Solar) Energy, kick-staring with our new Head Office location.

Energy Consumption-

Diesel (Generators)

(KWHr)

1,500,513.83

1,200,000.00 We intend to deploy alternative (Solar) Energy, kick-staring with our new Head Office location.

Paper Consumption –

reams

1150

900This will be achieved through the recently Approved document management system.

T otal number of toners consumed

103

80 This will be achieved through the recently Approved document management system.

Number of Branch Locations powered by Solar

Energy

3 5 We intend to power at least two branches through solar sources within the year.

Number of ATMs powered by Solar Energy 0 5 We intend to power 5 ATMGalleries through renewable energy sources within year.

Number of Bank locations with access for

Physically Challenged Persons

6 15 We have about 11 branches that have ramps for access byphysically challenged individuals. However, we intend to provide collapsible wheel chairs at all branches that can be used when the need arises.

Number of Green Accounts Opened

1268 1,868

With the continuous drive and awareness at various identified locations, an additional 600 Green Accounts are expected to be opened for the year 2021

T otal Number of Transactions Subject to E& S

Risk Assessment. 1345 1748

We intend to create an additional minimum of 403sustainable financing transactions during the year 2021.

Target for 2021

T otal Number of Transactions Monitored under

High Risk E& S Categorization.

208 270 This is a factor of the total transactions assessed and under the High E & S Risk categorization.

T otal Number of Transactions Monitored under

Medium E& S Risk Categorization.

1137 1478 This is a function of the total transactions assessed under the Medium E & S Risk categorization.

ECONOMIC

Dividend Pay Out to

Shareholders*

3kobo 3kobo A function of 2019 & 2020 financial performance

T otal Asset

233.596 billion 279.947 billion We intend to grow our asset based on key project financing for a sustainable economy.

T otal Deposit

175.513 billion 201.516 billion We intend to grow our deposit base to also increase financing of customers, for a sustainable economy.

T otal

Equity

17.845 billion 28.046 billion Our equity growth will continue to drive key investment in capital projects for financial sustainability and expansion of the organization.

Profit Before Tax (PBT) 3.066 billion 4.002 billion This is profitability for the Bank prior to application of all taxes, for year 2020, and expected amount for 2021 respectively.

Profit After Tax (PBT) 2.903 billion 3.522 billion Actual profitability of the Bank in 2021 and target for 2021, after all tax deductions.

**Dividend paid out to shareholders are actuals for both 2019 and 2020 Financial Account paid out to shareholders in the succeeding year of 2020 &2021 respectively.

Target for 2021

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 20 SUSTAINABILITY REPORT 2020 19 - GROWING SUSTAINABLY

ENVIRONMENTAL

T otal Number of Farmers on “One Farmer One

Hectare Project”

400

3,000 This program targets farmers in the remote communities, through the value chains for poverty reduction and zero hunger, while promoting decent work growth.

T onnes of Waste Recycled through the Bank

0.9MT/month

1.5MT/month

Kg. of GHG emissions -

reduction targets.

1,340

1600 Since we are reducing paper usage, we will be reducing papers recycled ultimately hence we cannot achieve signify can’t fete in this area. However, other items such as PET bottles used by employees will also be recycled.

Energy Consumption-

Electricity (KWHr

2,781,792.40

2,500,000.00 We intend to deploy alternative (Solar) Energy, kick-staring with our new Head Office location.

Energy Consumption-

Diesel (Generators)

(KWHr)

1,500,513.83

1,200,000.00 We intend to deploy alternative (Solar) Energy, kick-staring with our new Head Office location.

Paper Consumption –

reams

1150

900This will be achieved through the recently Approved document management system.

T otal number of toners consumed

103

80 This will be achieved through the recently Approved document management system.

Number of Branch Locations powered by Solar

Energy

3 5 We intend to power at least two branches through solar sources within the year.

Number of ATMs powered by Solar Energy 0 5 We intend to power 5 ATMGalleries through renewable energy sources within year.

Number of Bank locations with access for

Physically Challenged Persons

6 15 We have about 11 branches that have ramps for access byphysically challenged individuals. However, we intend to provide collapsible wheel chairs at all branches that can be used when the need arises.

Number of Green Accounts Opened

1268 1,868

With the continuous drive and awareness at various identified locations, an additional 600 Green Accounts are expected to be opened for the year 2021

T otal Number of Transactions Subject to E& S

Risk Assessment. 1345 1748

We intend to create an additional minimum of 403sustainable financing transactions during the year 2021.

Target for 2021

T otal Number of Transactions Monitored under

High Risk E& S Categorization.

208 270 This is a factor of the total transactions assessed and under the High E & S Risk categorization.

T otal Number of Transactions Monitored under

Medium E& S Risk Categorization.

1137 1478 This is a function of the total transactions assessed under the Medium E & S Risk categorization.

ECONOMIC

Dividend Pay Out to

Shareholders*

3kobo 3kobo A function of 2019 & 2020 financial performance

T otal Asset

233.596 billion 279.947 billion We intend to grow our asset based on key project financing for a sustainable economy.

T otal Deposit

175.513 billion 201.516 billion We intend to grow our deposit base to also increase financing of customers, for a sustainable economy.

T otal

Equity

17.845 billion 28.046 billion Our equity growth will continue to drive key investment in capital projects for financial sustainability and expansion of the organization.

Profit Before Tax (PBT) 3.066 billion 4.002 billion This is profitability for the Bank prior to application of all taxes, for year 2020, and expected amount for 2021 respectively.

Profit After Tax (PBT) 2.903 billion 3.522 billion Actual profitability of the Bank in 2021 and target for 2021, after all tax deductions.

**Dividend paid out to shareholders are actuals for both 2019 and 2020 Financial Account paid out to shareholders in the succeeding year of 2020 &2021 respectively.

Target for 2021

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 20 SUSTAINABILITY REPORT 2020 19 - GROWING SUSTAINABLY

1. Decent Employment: The bank has continued to conduct recruitment for competent hands, contributing its quota to providing decent employment directly to its employees. We have equally through the Green Account Initiative partnering with Chanja Datti Recycling Company provided decent jobs with over 250 women employed as pickers and sorters. Our Jaiz Financial Inclusion Centers ( JAFIC) have also aided in creating self-employment schemes for mostly women beneficiaries in remote communities

2. Gender: As part of our deliberate efforts towards promoting gender equality, the Bank added to the Board of Directors, the first female Non-Executive Director. Our Management have also been mandated to engage and employ more women both at the Management level and Junior level. In line with this, our Human Resource Department is developing a plan to encourage and bring onboard, more female employees

3. Resource Efficiency: In ensuring that we efficiently manage our resources, the Bank deployed a robust e-learning platform that have successfully been used to train and assess staff. A number of trainings have so far been conducted on this platform such as the mandatory AML/CFT training and assessment of all employees, Ethics, and other soft skill trainings. Other areas where we have managed our resources include drastic reduction in physical meetings including the Monthly Performance Review sessions, changes made to the bank's fleet by replacing older vehicles consuming more fuel to newer ones. These are some of the areas that have not only reduced cost of operations for the Bank, but also increased productivity.

4. Financial Inclusion: Our Financial Inclusion Centre is dedicated for women entrepreneurs in rural and semi urban communities, with the following objectives:(i) Extend investment facilities to women and disabled persons' micro entrepreneurs (ii) Build a saving culture among the women micro entrepreneurs(iii) Finance self-employment and income generating activities of women entrepreneurs in

financially excluded communities. (iv) Provide financial services (account opening, BVN enrolment, and agency banking) to rural

women who were otherwise excluded (v) Provide health care services through community approach to its financing customers.

The centre also focuses on financial literacy, in a broad sense, the knowledge and skills that empower people to make well informed decisions regarding the use of financial services and the management of one's private and business finances.

Targets Implementation

Centres

Acct

Opening

BVN Mudaribs

Facility

Disbursed

Amount

Repaid

Past Due

Asusu

Savings

% of

Amount

Repaid

Micro

Takaful

Contributions

Banks Profit

Share

MaiAdua

3365 1672

1597

30,022,000

22,524,300

7,497,700

8,169,890

75.6

2,759,796

16,403,480

Baure

3406 1295

1395

21,426,000

13,518,240

7,907,760

4,800,386

64

1,609,533

9,659,372

Zango

934

680

754

11,290,000

10,259,370

1,030,630

3,011,580

90

1,003,840

6,023,160

Daura

644

0

334

3,315,000

3,315,000

0

49,500

100

4,400

99,000 Total

8349

3647

4080

66,053,000

49,616,910

16,436,090

16,031,356

5,377,569

31,185,012

Pictorial Evidence of our Rural Women Empowerment

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 22 SUSTAINABILITY REPORT 2020 21 - GROWING SUSTAINABLY

1. Decent Employment: The bank has continued to conduct recruitment for competent hands, contributing its quota to providing decent employment directly to its employees. We have equally through the Green Account Initiative partnering with Chanja Datti Recycling Company provided decent jobs with over 250 women employed as pickers and sorters. Our Jaiz Financial Inclusion Centers ( JAFIC) have also aided in creating self-employment schemes for mostly women beneficiaries in remote communities

2. Gender: As part of our deliberate efforts towards promoting gender equality, the Bank added to the Board of Directors, the first female Non-Executive Director. Our Management have also been mandated to engage and employ more women both at the Management level and Junior level. In line with this, our Human Resource Department is developing a plan to encourage and bring onboard, more female employees

3. Resource Efficiency: In ensuring that we efficiently manage our resources, the Bank deployed a robust e-learning platform that have successfully been used to train and assess staff. A number of trainings have so far been conducted on this platform such as the mandatory AML/CFT training and assessment of all employees, Ethics, and other soft skill trainings. Other areas where we have managed our resources include drastic reduction in physical meetings including the Monthly Performance Review sessions, changes made to the bank's fleet by replacing older vehicles consuming more fuel to newer ones. These are some of the areas that have not only reduced cost of operations for the Bank, but also increased productivity.

4. Financial Inclusion: Our Financial Inclusion Centre is dedicated for women entrepreneurs in rural and semi urban communities, with the following objectives:(i) Extend investment facilities to women and disabled persons' micro entrepreneurs (ii) Build a saving culture among the women micro entrepreneurs(iii) Finance self-employment and income generating activities of women entrepreneurs in

financially excluded communities. (iv) Provide financial services (account opening, BVN enrolment, and agency banking) to rural

women who were otherwise excluded (v) Provide health care services through community approach to its financing customers.

The centre also focuses on financial literacy, in a broad sense, the knowledge and skills that empower people to make well informed decisions regarding the use of financial services and the management of one's private and business finances.

Targets Implementation

Centres

Acct

Opening

BVN Mudaribs

Facility

Disbursed

Amount

Repaid

Past Due

Asusu

Savings

% of

Amount

Repaid

Micro

Takaful

Contributions

Banks Profit

Share

MaiAdua

3365 1672

1597

30,022,000

22,524,300

7,497,700

8,169,890

75.6

2,759,796

16,403,480

Baure

3406 1295

1395

21,426,000

13,518,240

7,907,760

4,800,386

64

1,609,533

9,659,372

Zango

934

680

754

11,290,000

10,259,370

1,030,630

3,011,580

90

1,003,840

6,023,160

Daura

644

0

334

3,315,000

3,315,000

0

49,500

100

4,400

99,000 Total

8349

3647

4080

66,053,000

49,616,910

16,436,090

16,031,356

5,377,569

31,185,012

Pictorial Evidence of our Rural Women Empowerment

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 22 SUSTAINABILITY REPORT 2020 21 - GROWING SUSTAINABLY

United Nations Environment Programme Finance Initiative (UNEP FI) is a partnership between UNEP and the global financial sector to mobilize private sector finance for sustainable development. Amongst the frameworks established or co-created by the UNEP FI is the Principles for Responsible Banking (PRB), which was launched with more than 130 banks collectively holding USD 47 trillion in assets, or one third of the global banking sector, on 22 September 2019. In December 2020, UNEP FI alongside other Signatory Member Banks celebrated 200th Bank Signatory Members.

In line with our commitment to sustainability practices, and to continue to collaborate globally, in April 2019, we became a Signatory to the Statement of Commitment by Financial Institutions on Sustainable Development, and thus, a member of UNEP FI global community of banks, insurers, and investors. As a Signatory Member, we were among the more than 130 banks that launched the Principles for Responsible Banking.

The Principles for Responsible Banking (PRB) requires that we align our business strategy to Sustainable Development Goals & other frameworks, to analyze our transactions and operations with the goal of creating more positive impacts, while minimizing identified negative impacts. As an institution, it is essential that we continuously work with our clients & customers, engage other stakeholders for successful collaborations, have a governance structure, while building a culture of sustainability across board, and ultimately ensuring that we are transparent on the journey with clear accountability of progress on our journey.

Commitment to UNEP FI Principles for Responsible Banking

PRINCIPLE 1:ALIGNMENT

We w i l l a l i g n o u r business strategy to be

consistent with and contribute to individuals needs and society's goals, as e x p r e s s e d i n t h e S u s t a i n a b l e Development Goals, the Paris Climate Agreement, and relevant national and regional frameworks.

PRINCIPLE 2:IMPACT & TARGET SETTING

We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products, and services. To this end, we will set and publish targets where we can have the most significant impacts.

PRINCIPLE 3:CLIENTS & CUSTOMERS

W e w i l l w o r k responsibly with our

clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.

PRINCIPLE 4:STAKEHOLDERS

We will proactively a n d r e s p o n s i b l y consult, engage, and

partner with relevant stakeholders to achieve society's goal.

PRINCIPLE 5:GOVERNANCE & CULTURE

We will implement our commitment to these

principles through effective governance and a culture of responsible banking.

PRINCIPLE 6:TRANSPARENCY & ACCOUNTABILITY

We will periodically review our individual and

collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society's goals.

As a requirement, we have started acting in line with the three key steps designed to ensure the effective implementation of the Principles:

• Step 1: Impact Analysis• Step 2: Target Setting & Implementation• Step 3: Accountability.

The Principles will assist us in embedding sustainability at the strategic, portfolio and transactional levels, and across all our business areas.

Our Implementation Progress on the Principles for Responsible Banking include:

1. Alignment of our Business Strategy to the Principles.2. Setting up a Governance Structure to drive implementation.3. First impact analysis conducted for major financing and transactions that we have offered to

our customers, and set first-level targets of awareness to customers regarding both the positive and negative impacts identified.

4. We successfully improved on our positive impacts by kick-starting four different initiatives which addresses Decent employment, Gender, Resource efficiency and Financial Inclusion amongst others.

5. Engagement with stakeholders including participation as a working group member at the UNEP FI Principles for Responsible Banking Monitoring & Evaluation Committee.

Chief Executive liaison

Implementation and reporting by all key Business Units

Jaiz Bank Principles for Responsible Banking Governance Structure:

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 24 SUSTAINABILITY REPORT 2020 23 - GROWING SUSTAINABLY

Commitment to UNEP FI Principles for Responsible Banking

United Nations Environment Programme Finance Initiative (UNEP FI) is a partnership between UNEP and the global financial sector to mobilize private sector finance for sustainable development. Amongst the frameworks established or co-created by the UNEP FI is the Principles for Responsible Banking (PRB), which was launched with more than 130 banks collectively holding USD 47 trillion in assets, or one third of the global banking sector, on 22 September 2019. In December 2020, UNEP FI alongside other Signatory Member Banks celebrated 200th Bank Signatory Members.

In line with our commitment to sustainability practices, and to continue to collaborate globally, in April 2019, we became a Signatory to the Statement of Commitment by Financial Institutions on Sustainable Development, and thus, a member of UNEP FI global community of banks, insurers, and investors. As a Signatory Member, we were among the more than 130 banks that launched the Principles for Responsible Banking.

The Principles for Responsible Banking (PRB) requires that we align our business strategy to Sustainable Development Goals & other frameworks, to analyze our transactions and operations with the goal of creating more positive impacts, while minimizing identified negative impacts. As an institution, it is essential that we continuously work with our clients & customers, engage other stakeholders for successful collaborations, have a governance structure, while building a culture of sustainability across board, and ultimately ensuring that we are transparent on the journey with clear accountability of progress on our journey.

Commitment to UNEP FI Principles for Responsible Banking

PRINCIPLE 1:ALIGNMENT

We w i l l a l i g n o u r business strategy to be

consistent with and contribute to individuals needs and society's goals, as e x p r e s s e d i n t h e S u s t a i n a b l e Development Goals, the Paris Climate Agreement, and relevant national and regional frameworks.

PRINCIPLE 2:IMPACT & TARGET SETTING

We will continuously increase our positive impacts while reducing the negative impacts on, and managing the risks to, people and environment resulting from our activities, products, and services. To this end, we will set and publish targets where we can have the most significant impacts.

PRINCIPLE 3:CLIENTS & CUSTOMERS

W e w i l l w o r k responsibly with our

clients and our customers to encourage sustainable practices and enable economic activities that create shared prosperity for current and future generations.

PRINCIPLE 4:STAKEHOLDERS

We will proactively a n d r e s p o n s i b l y consult, engage, and

partner with relevant stakeholders to achieve society's goal.

PRINCIPLE 5:GOVERNANCE & CULTURE

We will implement our commitment to these

principles through effective governance and a culture of responsible banking.

PRINCIPLE 6:TRANSPARENCY & ACCOUNTABILITY

We will periodically review our individual and

collective implementation of these Principles and be transparent about and accountable for our positive and negative impacts and our contribution to society's goals.

As a requirement, we have started acting in line with the three key steps designed to ensure the effective implementation of the Principles:

• Step 1: Impact Analysis• Step 2: Target Setting & Implementation• Step 3: Accountability.

The Principles will assist us in embedding sustainability at the strategic, portfolio and transactional levels, and across all our business areas.

Our Implementation Progress on the Principles for Responsible Banking include:

1. Alignment of our Business Strategy to the Principles.2. Setting up a Governance Structure to drive implementation.3. First impact analysis conducted for major financing and transactions that we have offered to

our customers, and set first-level targets of awareness to customers regarding both the positive and negative impacts identified.

4. We successfully improved on our positive impacts by kick-starting four different initiatives which addresses Decent employment, Gender, Resource efficiency and Financial Inclusion amongst others.

5. Engagement with stakeholders including participation as a working group member at the UNEP FI Principles for Responsible Banking Monitoring & Evaluation Committee.

Chief Executive liaison

Implementation and reporting by all key Business Units

Jaiz Bank Principles for Responsible Banking Governance Structure:

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 24 SUSTAINABILITY REPORT 2020 23 - GROWING SUSTAINABLY

Commitment to UNEP FI Principles for Responsible Banking

Development Goals

We recognize the UNSDGs as global development goals that aim to improve our world. We conducted review of the goals in line with our implementation of the UNEP FI Principles for Responsible Banking, and identified certain ones that we can contribute to through our daily Business Operations and Business Transactions, and we set our commitment as follows:

Goal Our Commitment

• We provide specialized products to most economically disadvantaged and nancially excluded segments of the society.

• Our Jaiz Financial Inclusion Centre ( JAFIC) is a special purpose-built channel for providing equity-based nancing to women at the bottom of the pyramid

• We also introduced the Jaiz Innovation challenge in 2020 to support youth social entrepreneurs who ordinarily cannot have access to bank loans.

• With our One-Farmer-One-Hectare Agriculture project that supports small holder farmers with nancing, access to market and extension services to improve yield, we continue to bridge the gaps for farmers to ensure sustainable farming.

• We have been able to use this project to contribute immensely to the food produce

distribution, thus reducing hunger in our society.

• We ensure a safe and healthy environment to all our stakeholders. Our health and safety policies and procedures are in line with best-in-class national standards.

• We contribute to the prosperity and wellbeing of our employees, and ensure competitive benets.

• Our nancial solutions and services contribute greatly to the wellbeing of our customers.

• We maintain effective participation and contribution of our female employees in key decision-making process at the functional levels, while creating equal opportunities for leadership positions within the Bank.

• We keep deploying enabling technology, and awareness programmes to promote the empowerment of women especially in remote communities.

• To foster a clean energy plan, our offices are lit with energy saving bulbs, and we have also commenced the process of deploying alternative sources energy to our branch locations.

• We will continue to identify, partner with, and nance entrepreneurs and organizations on renewable energy provision especially for masses in the lower income spectrum to enable them access clean and reliable electricity.

• The labor rights are protected in our organization, as we consistently promote safe and secure working environments for all our workforce, whether permanent or contract staff.

• We have equally deployed products and services to encourage and expand access to nancial services for all.

• With our MSME products and services, we will keep increasing the access of small-scale industrial and other enterprises to nancial services, including affordable facilities, while aiding their integration into value chains and markets.

• We give equal opportunities to our employees both males and females, while reducing inequalities in all spheres.

• Our appraisal process for credit facilities has been curated against the traditional prejudices around female owned or managed businesses.

Development Goals

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 26 SUSTAINABILITY REPORT 2020 25 - GROWING SUSTAINABLY

Development Goals

We recognize the UNSDGs as global development goals that aim to improve our world. We conducted review of the goals in line with our implementation of the UNEP FI Principles for Responsible Banking, and identified certain ones that we can contribute to through our daily Business Operations and Business Transactions, and we set our commitment as follows:

Goal Our Commitment

• We provide specialized products to most economically disadvantaged and nancially excluded segments of the society.

• Our Jaiz Financial Inclusion Centre ( JAFIC) is a special purpose-built channel for providing equity-based nancing to women at the bottom of the pyramid

• We also introduced the Jaiz Innovation challenge in 2020 to support youth social entrepreneurs who ordinarily cannot have access to bank loans.

• With our One-Farmer-One-Hectare Agriculture project that supports small holder farmers with nancing, access to market and extension services to improve yield, we continue to bridge the gaps for farmers to ensure sustainable farming.

• We have been able to use this project to contribute immensely to the food produce

distribution, thus reducing hunger in our society.

• We ensure a safe and healthy environment to all our stakeholders. Our health and safety policies and procedures are in line with best-in-class national standards.

• We contribute to the prosperity and wellbeing of our employees, and ensure competitive benets.

• Our nancial solutions and services contribute greatly to the wellbeing of our customers.

• We maintain effective participation and contribution of our female employees in key decision-making process at the functional levels, while creating equal opportunities for leadership positions within the Bank.

• We keep deploying enabling technology, and awareness programmes to promote the empowerment of women especially in remote communities.

• To foster a clean energy plan, our offices are lit with energy saving bulbs, and we have also commenced the process of deploying alternative sources energy to our branch locations.

• We will continue to identify, partner with, and nance entrepreneurs and organizations on renewable energy provision especially for masses in the lower income spectrum to enable them access clean and reliable electricity.

• The labor rights are protected in our organization, as we consistently promote safe and secure working environments for all our workforce, whether permanent or contract staff.

• We have equally deployed products and services to encourage and expand access to nancial services for all.

• With our MSME products and services, we will keep increasing the access of small-scale industrial and other enterprises to nancial services, including affordable facilities, while aiding their integration into value chains and markets.

• We give equal opportunities to our employees both males and females, while reducing inequalities in all spheres.

• Our appraisal process for credit facilities has been curated against the traditional prejudices around female owned or managed businesses.

Development Goals

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 26 SUSTAINABILITY REPORT 2020 25 - GROWING SUSTAINABLY

• Through our nancing, we will provide credit facilities to ensure access for majority to adequate, safe and affordable housing.

• Our sustainability practices including our internal recycling initiative and Green Account Initiative for customers helps us to be responsible in our consumption, and substantially reduce waste generation through prevention, reduction, recycling and reuse.

• We have also integrated procurement practices that are sustainable, in accordance with relevant policies.

• We provide education, and awareness-raising to our employees and customers on climate change mitigation, adaptation, and for impact reduction of our business transactions.

• As an ethical institution, we ensure that our Business Operations and Business Transactions are conducted fairly.

• We do not nance or support any business that promotes violence, or produce harmful substances that will affect the people, environment and the economies where we operate.

• We continue to build our capacity through trainings, awareness to collectively achieve the Goals.

• We steadfastly collaborate with others in the industry, and other stakeholders for collective achievements of the common Goals.

Development Goals

PRINCIPLE 1 Our Business Activities: Environmental and Social Risk Management

PRINCIPLE 2Our Business Operations: Environmental and Social Footprint

PRINCIPLE 3 Human Rights

PRINCIPLE 4 Women's Economic Empowerment

PRINCIPLE 5 Financial Inclusion

PRINCIPLE 6 E&S Governance

PRINCIPLE 7 Capacity Building

PRINCIPLE 8 Collaborative Partnerships

PRINCIPLE 9 Reporting

01 03 05 07 09

02 04 06 08

Nigerian Sustainable Banking Principles (NSBP)

The Paris Climate Agreement calls for limiting the global average temperature rise to well below 2 degrees Celsius, while pursuing efforts to limit the temperature rise to 1.5 degrees, by reducing greenhouse gas emissions.

As a Bank, we have put in place the following actions to smoothen our strategic alignment with Paris Climate Agreement:Ÿ We engage our vendors and sensitize them on ensuring sustainable practices. This will breed a

more sustainable ecosystem.Ÿ Our Investment Appraisal Memo have designated column to assess nancing in line with best

sustainable practices.Ÿ We partner with recycling companies to reduce the adverse impact of recycling which dovetails

to Paris Climate Agreement.Ÿ Solar Energy is considered as alternate means of power supply to our new branches. This is

intended to reduce negative impacts of air pollution and gas emissions.

PROCEDURES TO ENSURE IMPLEMENTATION OF 2021 SUSTAINABILITY TARGET.We have developed effective High-level Action Plans for key departments; MSME, Corporate & Structured Finance, Corporate Communications, General Services, Human Resource & RMD. Action on developing plans for other departments are currently in place, measures are been put in place to ensure everyone comply to these plans.

ALIGNMENT WITH THE NIGERIA SUSTAINABLE BANKING PRINCIPLES (NSBP)The Nigerian Sustainable Banking Principles aim to foster positive development impacts to society while protecting the communities and environment in which financial institutions and their clients operate. The nine Principles encompass commitments to both environmental sustainability and respect for human rights, and require banks to respect human rights in their business activities, to promote financial inclusion and women's economic empowerment, and to integrate environmental and social considerations into all bank's decision-making processes.

Alignment with the Paris Climate Agreement

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 28 SUSTAINABILITY REPORT 2020 27 - GROWING SUSTAINABLY

• Through our nancing, we will provide credit facilities to ensure access for majority to adequate, safe and affordable housing.

• Our sustainability practices including our internal recycling initiative and Green Account Initiative for customers helps us to be responsible in our consumption, and substantially reduce waste generation through prevention, reduction, recycling and reuse.

• We have also integrated procurement practices that are sustainable, in accordance with relevant policies.

• We provide education, and awareness-raising to our employees and customers on climate change mitigation, adaptation, and for impact reduction of our business transactions.

• As an ethical institution, we ensure that our Business Operations and Business Transactions are conducted fairly.

• We do not nance or support any business that promotes violence, or produce harmful substances that will affect the people, environment and the economies where we operate.

• We continue to build our capacity through trainings, awareness to collectively achieve the Goals.

• We steadfastly collaborate with others in the industry, and other stakeholders for collective achievements of the common Goals.

Development Goals

PRINCIPLE 1 Our Business Activities: Environmental and Social Risk Management

PRINCIPLE 2Our Business Operations: Environmental and Social Footprint

PRINCIPLE 3 Human Rights

PRINCIPLE 4 Women's Economic Empowerment

PRINCIPLE 5 Financial Inclusion

PRINCIPLE 6 E&S Governance

PRINCIPLE 7 Capacity Building

PRINCIPLE 8 Collaborative Partnerships

PRINCIPLE 9 Reporting

01 03 05 07 09

02 04 06 08

Nigerian Sustainable Banking Principles (NSBP)

The Paris Climate Agreement calls for limiting the global average temperature rise to well below 2 degrees Celsius, while pursuing efforts to limit the temperature rise to 1.5 degrees, by reducing greenhouse gas emissions.

As a Bank, we have put in place the following actions to smoothen our strategic alignment with Paris Climate Agreement:Ÿ We engage our vendors and sensitize them on ensuring sustainable practices. This will breed a

more sustainable ecosystem.Ÿ Our Investment Appraisal Memo have designated column to assess nancing in line with best

sustainable practices.Ÿ We partner with recycling companies to reduce the adverse impact of recycling which dovetails

to Paris Climate Agreement.Ÿ Solar Energy is considered as alternate means of power supply to our new branches. This is

intended to reduce negative impacts of air pollution and gas emissions.

PROCEDURES TO ENSURE IMPLEMENTATION OF 2021 SUSTAINABILITY TARGET.We have developed effective High-level Action Plans for key departments; MSME, Corporate & Structured Finance, Corporate Communications, General Services, Human Resource & RMD. Action on developing plans for other departments are currently in place, measures are been put in place to ensure everyone comply to these plans.

ALIGNMENT WITH THE NIGERIA SUSTAINABLE BANKING PRINCIPLES (NSBP)The Nigerian Sustainable Banking Principles aim to foster positive development impacts to society while protecting the communities and environment in which financial institutions and their clients operate. The nine Principles encompass commitments to both environmental sustainability and respect for human rights, and require banks to respect human rights in their business activities, to promote financial inclusion and women's economic empowerment, and to integrate environmental and social considerations into all bank's decision-making processes.

Alignment with the Paris Climate Agreement

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 28 SUSTAINABILITY REPORT 2020 27 - GROWING SUSTAINABLY

Our alignment to the nine Principles entails that we put in place actionable, implementable plans, and strategically collaborate with all stakeholders - employees, clients, customers, other banks, and governmental bodies.

We remain committed to the implementing these Principles through the following:

Principle 1

Principle 2

Principle 3

Principle 4

Principle 5

Principle 6

Principle 7

Principle 8

Principle 9

We will continue to develop and improve upon our E&S procedures and put in place appropriate E&S reporting criteria

We will continue to respect rights in our Business Operations & Business Activites; Integrate human rights due diligence into our E&S procedures, and; Invest in training of staff on right issues.

We are committed to providing development and growth support to SMEs; Improving nancial literacy and provide institutional practice, and; Granting access to bank facilities and services.

We are focused on developing appropriate institutional capacity building from top levels of Management to all employees, and create practical E&S training tools and resources.

We will be accountable in our commitment to setting clear targets and ensure the necessary systems are in place to collect data. We will continue to report our implementation progress.

We guarantee a robust environmental management program which will address the following: Water efficiency, Waste Management, & Environmental friendly facilities; cultivate & Implement Community programs and Apply E&S Standard to relevant third parties

We assure to build and implement robust policies, initiatives & programs that will continue to promote & celebrate Women Empowerment

We remain dedicated to our E&S govenance responsibility, while promoting institutional E&S governance practices. We will actively support key industry initiatives that aim to address E&S governance with clients operating in sensitive sectors, and implement E&S performance performance - linked compensation and incentive schemes.

We will continue to develop and improve upon our E&S procedures and put in place appropriate E&S reporting criteria

Role of the Board of DirectorsThe Board of Directors are ultimately responsible for overall risk management of the Bank and for establishing and monitoring the effectiveness of its Risk Management and Corporate Governance frameworks.

Corporate Governance

1. Alhaji (Dr.) Umaru Abdul Mutallab, FCA, CON - Chairman 2. Hassan Usman, FCA, FCIB. - Managing Director/CEO3. Mahe Abubakar - Deputy Managing Director*4. Abdulfattah O. Amoo, FCA - Executive Director 5. Sirajo Salisu - Executive Director**5. Alh. (Dr.) Aminu Alhassan Dantata, CON - Non-Executive Director6. Alhaji (Dr.) Muhammadu Indimi, OFR - Non-Executive 7. Alhaji Mukthar Sani Hanga - Non-Executive Director8. Alhaji (Dr.) Musbahu Mohammad Bashir - Non-Executive Director9. HRH, (Engr.) Bello Muhammad Sani, OON - Non-Executive Director10. Mallam Falalu Bello, FCIB, OFR - Non-Executive Director11. Alhaji (Dr.) Umaru Kwairanga F.IoD, FCS, FCIP - Non-Executive Director12. Mr. Seedy Mohammed Njie - Non-Executive Director 13. Alhaji Ibrahim Mamun Maude - Non Executive Director 14. Mrs. Aisha Waziri Umar - Independent Director15. Dr. Abdullateef Bello - Independent Director

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Alignment with the Paris Climate Agreement:

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 30 SUSTAINABILITY REPORT 2020 29 - GROWING SUSTAINABLY

1 2 3

4 6 7

8 9 10 11

12 13 14 15

16

5

Our alignment to the nine Principles entails that we put in place actionable, implementable plans, and strategically collaborate with all stakeholders - employees, clients, customers, other banks, and governmental bodies.

We remain committed to the implementing these Principles through the following:

Principle 1

Principle 2

Principle 3

Principle 4

Principle 5

Principle 6

Principle 7

Principle 8

Principle 9

We will continue to develop and improve upon our E&S procedures and put in place appropriate E&S reporting criteria

We will continue to respect rights in our Business Operations & Business Activites; Integrate human rights due diligence into our E&S procedures, and; Invest in training of staff on right issues.

We are committed to providing development and growth support to SMEs; Improving nancial literacy and provide institutional practice, and; Granting access to bank facilities and services.

We are focused on developing appropriate institutional capacity building from top levels of Management to all employees, and create practical E&S training tools and resources.

We will be accountable in our commitment to setting clear targets and ensure the necessary systems are in place to collect data. We will continue to report our implementation progress.

We guarantee a robust environmental management program which will address the following: Water efficiency, Waste Management, & Environmental friendly facilities; cultivate & Implement Community programs and Apply E&S Standard to relevant third parties

We assure to build and implement robust policies, initiatives & programs that will continue to promote & celebrate Women Empowerment

We remain dedicated to our E&S govenance responsibility, while promoting institutional E&S governance practices. We will actively support key industry initiatives that aim to address E&S governance with clients operating in sensitive sectors, and implement E&S performance performance - linked compensation and incentive schemes.

We will continue to develop and improve upon our E&S procedures and put in place appropriate E&S reporting criteria

Role of the Board of DirectorsThe Board of Directors are ultimately responsible for overall risk management of the Bank and for establishing and monitoring the effectiveness of its Risk Management and Corporate Governance frameworks.

Corporate Governance

1. Alhaji (Dr.) Umaru Abdul Mutallab, FCA, CON - Chairman 2. Hassan Usman, FCA, FCIB. - Managing Director/CEO3. Mahe Abubakar - Deputy Managing Director*4. Abdulfattah O. Amoo, FCA - Executive Director 5. Sirajo Salisu - Executive Director**5. Alh. (Dr.) Aminu Alhassan Dantata, CON - Non-Executive Director6. Alhaji (Dr.) Muhammadu Indimi, OFR - Non-Executive 7. Alhaji Mukthar Sani Hanga - Non-Executive Director8. Alhaji (Dr.) Musbahu Mohammad Bashir - Non-Executive Director9. HRH, (Engr.) Bello Muhammad Sani, OON - Non-Executive Director10. Mallam Falalu Bello, FCIB, OFR - Non-Executive Director11. Alhaji (Dr.) Umaru Kwairanga F.IoD, FCS, FCIP - Non-Executive Director12. Mr. Seedy Mohammed Njie - Non-Executive Director 13. Alhaji Ibrahim Mamun Maude - Non Executive Director 14. Mrs. Aisha Waziri Umar - Independent Director15. Dr. Abdullateef Bello - Independent Director

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Alignment with the Paris Climate Agreement:

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 30 SUSTAINABILITY REPORT 2020 29 - GROWING SUSTAINABLY

1 2 3

4 6 7

8 9 10 11

12 13 14 15

16

5

(Shari'ah) Advisory Committee of Experts (ACE)The independent committee sits quarterly, endorses risk management processes and reviews accounts, validates products and services in line with Shari'ah principles, and their decision is final, subject to the Financial and Regulatory Advisory Committee of Experts (FRACE) of the CBN.

Key Management TeamComprises of experienced and vast Team Members from the Executive Management to Key Officers who continue to ensure that the overall strategic objectives of the Bank are collectively achieved at the various Functions.

Hassan Usman, FCA, FCIB - Managing Director/CEO Abubakar Mahe - Deputy Managing Director*Abdulfattah O. Amoo FCA - Executive Director Operations/CFOSalisu Sirajo Ph.D - Executive Director, Business Development**Dr. Nuruddeen Ahmad Liman - Regional Manager – North WestAhmed A. Hassan - Chief Compliance OfficerIsmaila Adamu - Divisional Head, - Corporate ServicesMusa Zara Ibrahim - Regional Manager - AbujaRukayat O. Dahiru - Company Secretary/Legal AdviserAbdullahi Usman FCA - Chief Audit ExecutiveAlhassan Abdulkarim - Regional Manager SouthMusa Potiskum - Ag. Chief Risk Officer Muhammad K. Muhammad Ph.D - Chief Strategy Officer

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Dr. Muhammad Alhaji Abubakar - Member

Prof. Monzer Kahf - Chairman

Sheikh Abdulwahab - Member Dr. Ahmad Bello Dogarawa - Member

Corporate Governance

It is our responsibility to create value for all our stakeholders at every opportunity. We make it an absolute priority to engage our stakeholders within our business processes in a systematic and frequent manner. Doing this enables us to reflect on our practices and introduce improvements wherever possible. We identify our stakeholders as individuals or organizations that can impact or be impacted by our existence.

We engage with different types of stakeholders using various methods. This is illustrated in the table below which lists the Bank's different stakeholder groups, and explains the engagement methods, their frequency, and the feedback we received from them throughout 2020.

Listening to Our Stakeholders

Stakeholder Group Engagement Method & Frequency Reflections & Feedback For 2020

• Quarterly nancial results• Quarterly investors meeting• Annual analysts and Facts Behind the

Figures meeting at the Stock Exchange• Annual report Press releases• The Annual General Meeting• The dedicated “Investor Relations”

section on our website

• Focus on non-performing assets • Dividend payout • Strategy implementation• Cost reduction • Raising capital buffers• Compliance with Financial Reporting

Council Corporate Governance Code• Strategic succession planning • Digital transformation

Investors

• Quarterly Board meetings • Quarterly nancial results Board

committee meetings• Annual Board strategy retreat• Annual General Meeting

• Capital injection• Improved nancial results • Strategy implementation• Strategic cost management• Management Leadership Succession

planning • Legal and regulatory compliance

Board of Directors

• Quarterly trainings and Capacity Building

• Monthly sensitization through the Bank's internal platforms.

• Annual Strategy Session• Quarterly engagement forums• Bi-annual Inter-departmental surveys

• Increase training for all employees• Initiatives and activities to create more

Social Impact• Improve awareness across platforms• Need to maintain market competitive

compensation and benets

Employees

• Bi-Annual Customer satisfaction surveys

• Daily in-branch interaction• 24/7 Contact Centre interaction• One-on-one account relationship

management• SMS and email blasts• Social media real-time interaction• Annual report releases• Periodic awareness and workshops

• More awareness programs.• Digital transformation• Seamless access to credit facilities• High up-time on all customer touch

points• I n f o r m a t i o n s e c u r i t y a n d

condentiality• Product & service pricing

Customers

• Pre-tendering meetings• One-on-one meet ing with the

standing Procurement Committee• Post-project debrieng

• Cost negotiations• Automation of the tendering process

to allow for ease of tracking by vendors

Suppliers

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 32 SUSTAINABILITY REPORT 2020 31 - GROWING SUSTAINABLY

(Shari'ah) Advisory Committee of Experts (ACE)The independent committee sits quarterly, endorses risk management processes and reviews accounts, validates products and services in line with Shari'ah principles, and their decision is final, subject to the Financial and Regulatory Advisory Committee of Experts (FRACE) of the CBN.

Key Management TeamComprises of experienced and vast Team Members from the Executive Management to Key Officers who continue to ensure that the overall strategic objectives of the Bank are collectively achieved at the various Functions.

Hassan Usman, FCA, FCIB - Managing Director/CEO Abubakar Mahe - Deputy Managing Director*Abdulfattah O. Amoo FCA - Executive Director Operations/CFOSalisu Sirajo Ph.D - Executive Director, Business Development**Dr. Nuruddeen Ahmad Liman - Regional Manager – North WestAhmed A. Hassan - Chief Compliance OfficerIsmaila Adamu - Divisional Head, - Corporate ServicesMusa Zara Ibrahim - Regional Manager - AbujaRukayat O. Dahiru - Company Secretary/Legal AdviserAbdullahi Usman FCA - Chief Audit ExecutiveAlhassan Abdulkarim - Regional Manager SouthMusa Potiskum - Ag. Chief Risk Officer Muhammad K. Muhammad Ph.D - Chief Strategy Officer

* Retired with effect from February 16, 2021 ** Appointed with effect from January 1, 2021

Dr. Muhammad Alhaji Abubakar - Member

Prof. Monzer Kahf - Chairman

Sheikh Abdulwahab - Member Dr. Ahmad Bello Dogarawa - Member

Corporate Governance

It is our responsibility to create value for all our stakeholders at every opportunity. We make it an absolute priority to engage our stakeholders within our business processes in a systematic and frequent manner. Doing this enables us to reflect on our practices and introduce improvements wherever possible. We identify our stakeholders as individuals or organizations that can impact or be impacted by our existence.

We engage with different types of stakeholders using various methods. This is illustrated in the table below which lists the Bank's different stakeholder groups, and explains the engagement methods, their frequency, and the feedback we received from them throughout 2020.

Listening to Our Stakeholders

Stakeholder Group Engagement Method & Frequency Reflections & Feedback For 2020

• Quarterly nancial results• Quarterly investors meeting• Annual analysts and Facts Behind the

Figures meeting at the Stock Exchange• Annual report Press releases• The Annual General Meeting• The dedicated “Investor Relations”

section on our website

• Focus on non-performing assets • Dividend payout • Strategy implementation• Cost reduction • Raising capital buffers• Compliance with Financial Reporting

Council Corporate Governance Code• Strategic succession planning • Digital transformation

Investors

• Quarterly Board meetings • Quarterly nancial results Board

committee meetings• Annual Board strategy retreat• Annual General Meeting

• Capital injection• Improved nancial results • Strategy implementation• Strategic cost management• Management Leadership Succession

planning • Legal and regulatory compliance

Board of Directors

• Quarterly trainings and Capacity Building

• Monthly sensitization through the Bank's internal platforms.

• Annual Strategy Session• Quarterly engagement forums• Bi-annual Inter-departmental surveys

• Increase training for all employees• Initiatives and activities to create more

Social Impact• Improve awareness across platforms• Need to maintain market competitive

compensation and benets

Employees

• Bi-Annual Customer satisfaction surveys

• Daily in-branch interaction• 24/7 Contact Centre interaction• One-on-one account relationship

management• SMS and email blasts• Social media real-time interaction• Annual report releases• Periodic awareness and workshops

• More awareness programs.• Digital transformation• Seamless access to credit facilities• High up-time on all customer touch

points• I n f o r m a t i o n s e c u r i t y a n d

condentiality• Product & service pricing

Customers

• Pre-tendering meetings• One-on-one meet ing with the

standing Procurement Committee• Post-project debrieng

• Cost negotiations• Automation of the tendering process

to allow for ease of tracking by vendors

Suppliers

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 32 SUSTAINABILITY REPORT 2020 31 - GROWING SUSTAINABLY

Stakeholder Group Engagement Method & Frequency Reflections & Feedback For 2020

• Annual Central Bank Risk-based Examination.

• Daily, Quarterly and Semi-annual & Annual Returns to the Central Bank and the Nigeria Deposit Insurance Corporation (NDIC)

• ·Annual Federal Inland Revenue tax audit and meeting

• Quarterly reports to the Securities and Exchange Commission and the Nigeria Stock Exchange (NSE)

• NSE Issuer Portal• Annual NSE investor facts behind the

gure.

• Financial performance• Regulatory compliance• Corporate Governance• Social and environmental impact• Adequacy of deposit insurance• Investor protection•

The Government and Regulators

• Annual Financial Literacy Day lecture• RISE Project: Collaboration with the

CANs Foundation (an eco-friendly t e c h n o l o g y h u b ) a n d o t h e r philanthropic donors to roll out Project RISE (Relief, Intervention and Symptoms Evaluation) for COVID-19 and beyond, providing relief to households mostl y in indigent communities across Nigeria.

• COVID-19 Innovation Challenge: An initiative that was introduced to encourage social enterprise for start-up entrepreneurs by bridging gaps including nancing and capacity bu i ld ing through f und ing and accelerator programs designed to build these entrepreneurs, while developing and enhancing their skills.

• Empowerment of youth• Promotion of social entrepreneurship• Financial inclusion• Sponsorships and donations• Feedback from the 2020 Project RISE

revealed that out of the total relief, 63.3% was accounted for food, 31.7% for home essentials and 5.0% for medical supplies. The Bank will continue to use this avenue and more to make positive sociable footprints in the environs.

The Local Community

Listening to Our Stakeholders

Definition: Materiality is the threshold at which an issue or Indicator becomes sufficiently important that it should be reported. Beyond this threshold, not all material topics will be of equal importance and the emphasis within a report should reflect the relative priority of these material topics and Indicators.

The Bank is faced with a wide range of topics on which it could report. Relevant topics and Indicators are those that may reasonably be considered important for reflecting the Bank's economic, environmental, and social impacts, or influencing the decisions of stakeholders, and, therefore, potentially merit inclusion in its report. The Bank deploys a combination of internal and external factors in the determination of whether an information is material or not, including factors such as the Bank's overall vision/mission, core values and competitive strategy, concerns raised by its stakeholders, broader social expectations, and the influence it has on its vendors and customers.

Materiality Analysis

Somewhatmaterial issues

Extremelymaterial issues

Material issues

Significance of economic, environmental, and social impacts

1 GRI Financial Services Sector Supplement

Non-Material issues

5

0

5

SUSTAINABILITY REPORT 2020 33 - GROWING SUSTAINABLY

Influ

ence

on

stak

ehol

ders

ass

essm

ents

and

dec

ision

s

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 34

Stakeholder Group Engagement Method & Frequency Reflections & Feedback For 2020

• Annual Central Bank Risk-based Examination.

• Daily, Quarterly and Semi-annual & Annual Returns to the Central Bank and the Nigeria Deposit Insurance Corporation (NDIC)

• ·Annual Federal Inland Revenue tax audit and meeting

• Quarterly reports to the Securities and Exchange Commission and the Nigeria Stock Exchange (NSE)

• NSE Issuer Portal• Annual NSE investor facts behind the

gure.

• Financial performance• Regulatory compliance• Corporate Governance• Social and environmental impact• Adequacy of deposit insurance• Investor protection•

The Government and Regulators

• Annual Financial Literacy Day lecture• RISE Project: Collaboration with the

CANs Foundation (an eco-friendly t e c h n o l o g y h u b ) a n d o t h e r philanthropic donors to roll out Project RISE (Relief, Intervention and Symptoms Evaluation) for COVID-19 and beyond, providing relief to households mostl y in indigent communities across Nigeria.

• COVID-19 Innovation Challenge: An initiative that was introduced to encourage social enterprise for start-up entrepreneurs by bridging gaps including nancing and capacity bu i ld ing through f und ing and accelerator programs designed to build these entrepreneurs, while developing and enhancing their skills.

• Empowerment of youth• Promotion of social entrepreneurship• Financial inclusion• Sponsorships and donations• Feedback from the 2020 Project RISE

revealed that out of the total relief, 63.3% was accounted for food, 31.7% for home essentials and 5.0% for medical supplies. The Bank will continue to use this avenue and more to make positive sociable footprints in the environs.

The Local Community

Listening to Our Stakeholders

Definition: Materiality is the threshold at which an issue or Indicator becomes sufficiently important that it should be reported. Beyond this threshold, not all material topics will be of equal importance and the emphasis within a report should reflect the relative priority of these material topics and Indicators.

The Bank is faced with a wide range of topics on which it could report. Relevant topics and Indicators are those that may reasonably be considered important for reflecting the Bank's economic, environmental, and social impacts, or influencing the decisions of stakeholders, and, therefore, potentially merit inclusion in its report. The Bank deploys a combination of internal and external factors in the determination of whether an information is material or not, including factors such as the Bank's overall vision/mission, core values and competitive strategy, concerns raised by its stakeholders, broader social expectations, and the influence it has on its vendors and customers.

Materiality Analysis

Somewhatmaterial issues

Extremelymaterial issues

Material issues

Significance of economic, environmental, and social impacts

1 GRI Financial Services Sector Supplement

Non-Material issues

5

0

5

SUSTAINABILITY REPORT 2020 33 - GROWING SUSTAINABLY In

fluen

ce o

n st

akeh

olde

rs a

sses

smen

ts a

nd d

ecisi

ons

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 34

Materiality Heat Types of Issues

• Electricity Consumption• Consumer Financial Literacy

• Somewhat material

• Vendor Assessment on Social Practices• Vendor Assessment on Environmental Practices • Fair & Transparent Procurement• Diversity at Workplace• Green Buildings.

• Non-Material

Source: Fictitious data, for illustration purposes only

• Governance & Compliance• Financial Performance• Customer Experience• Financial Performance • Employee Empowerment • Shareholder Engagement • Environmental and Social Risk on banking books• Employees Knowledge on Shariah• Risk Management• Employees Gender Equality

• Extremely material

• Competitive Salaries & Benets• Responsible Financing • Carbon Footprint• Promotion of Micro Entrepreneurship• Women's Economic Empowerment• Employees work-life balance• Financial Inclusion

• Material

Materiality Analysis

Jaiz Bank as a non-interest (Islamic Bank) has developed a Sustainability Framework that holds at its core the creation of shared value between the Bank and all its stakeholders. As shown in the figure below, the Framework demonstrates how the principles guiding the Bank's sustainability practice jointly and severally lead to the production of a shared value for key stakeholders. The guiding principles include:

1. Five Maqasid Al Shariah 2. Seventeen United Nations Sustainable Development Goals3. Six UNEP Fi Principles for Responsible Banking4. Nine Nigeria Sustainable Banking Principles (NSBP)5. National sustainability best practice6. Jaiz Bank Vision and Mission7. Local Legislation

Technically the word “Shariah” refers to the laws, commandments, prohibitions, guidance and principles prescribed on adherents of Islam As for the word “Maqasid”, in Arabic it literally means aims, purposes or objectives.Maqasid of the Shariah therefore aims at the attainment of good, welfare, advantage, benefits, and warding off evil, injury, loss, formankind.The five espouse principles of the Maqasid Al Shariah include: Protection Faith, Preservation of Life, Preservation of Intellect, Protection of Family and Preservation of Property.

Our Sustainability Framework

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 36 SUSTAINABILITY REPORT 2020 35 -GROWING SUSTAINABLY

Materiality Heat Types of Issues

• Electricity Consumption• Consumer Financial Literacy

• Somewhat material

• Vendor Assessment on Social Practices• Vendor Assessment on Environmental Practices • Fair & Transparent Procurement• Diversity at Workplace• Green Buildings.

• Non-Material

Source: Fictitious data, for illustration purposes only

• Governance & Compliance• Financial Performance• Customer Experience• Financial Performance • Employee Empowerment • Shareholder Engagement • Environmental and Social Risk on banking books• Employees Knowledge on Shariah• Risk Management• Employees Gender Equality

• Extremely material

• Competitive Salaries & Benets• Responsible Financing • Carbon Footprint• Promotion of Micro Entrepreneurship• Women's Economic Empowerment• Employees work-life balance• Financial Inclusion

• Material

Materiality Analysis

Jaiz Bank as a non-interest (Islamic Bank) has developed a Sustainability Framework that holds at its core the creation of shared value between the Bank and all its stakeholders. As shown in the figure below, the Framework demonstrates how the principles guiding the Bank's sustainability practice jointly and severally lead to the production of a shared value for key stakeholders. The guiding principles include:

1. Five Maqasid Al Shariah 2. Seventeen United Nations Sustainable Development Goals3. Six UNEP Fi Principles for Responsible Banking4. Nine Nigeria Sustainable Banking Principles (NSBP)5. National sustainability best practice6. Jaiz Bank Vision and Mission7. Local Legislation

Technically the word “Shariah” refers to the laws, commandments, prohibitions, guidance and principles prescribed on adherents of Islam As for the word “Maqasid”, in Arabic it literally means aims, purposes or objectives.Maqasid of the Shariah therefore aims at the attainment of good, welfare, advantage, benefits, and warding off evil, injury, loss, formankind.The five espouse principles of the Maqasid Al Shariah include: Protection Faith, Preservation of Life, Preservation of Intellect, Protection of Family and Preservation of Property.

Our Sustainability Framework

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 36 SUSTAINABILITY REPORT 2020 35 -GROWING SUSTAINABLY

Appendix

GRI Standards Reference Table

Disclosure Number

Description

2020 Reference/Response

GRI 102: General Disclosures

Organizational Profile

102-1

Name of the organization

Jaiz Bank PLC

102-2

Activities, brands, products, and

services

INTRODUCTION -Jaiz Bank Overview.

Products and Services Offerings

102-3

Location of headquarters

Abuja, Federal Capital Territory . Nigeria.

102-4

Locations of operations

Jaiz Bank Network

102-6

Market served

Retail, Corporate, Institutions.

102-7

Scale of organization

Organizational Scale and Financial Synopsis.

2020 Annual Report pages 64, 89-90

102-14

Statement from senior decision-maker

Chairman’s

Statement, and Chief Executive’s

Message

102-15

Key impacts, risks and opportunities

Key Highlights, Target s for 2021,

Commitments to the UNEP FI Principles for

Responsible Banking, Alignment with the

United Nations Sustainable Development

Goals, Alignment with the Nigerian

Sustainable

Banking Principles

102-16

Values, principles, standards and norms of

behavior

Corporate Philosophy

Disclosure Number Description 2020 Reference/Response

Governance

102-18

Governance structure

Corporate Governance

102-19

Delegating authority

2020 Annual Report pages 69

102-20

Executive-level responsibility for economic,

environmental, and social topics

2020 Annual Report pages 22

102--22

Composition of the highest governance body

and its committees

2020 Annual Report pages 46-53,70-72

102-26

Role of highest governance body in setting

purpose, values, and strategy

2020 Annual Report pages 68

102-27

Collective knowledge of highest governance

body

2020 Annual Report pages 68

102-30

Effectiveness of risk management

processes

2020 Annual Report pages 35-43

Stakeholders Engagement

102-40

List of stakeholder groups

Listening to Our Stakeholders

102-42

Identifying

and selecting stakeholders

Listening to our stakeholders - Stakeholders

Group

102-43

Approach to stakeholder engagement

Listening to our stakeholders – Engagement

Methods and Frequency

102-44

Key topics and concerns raised

Listening to our stakeholders – Reflections &

Feedbacks for 2020

Reporting Practices

102-45

Entities included in the consolidated

financial statements

No subsidiary

102-46

Defining report content and

topic Boundaries

Table of Content

102-47

List of material topics

Materiality Analysis, Our Sustainability

Framework

102-48

Restatements of information

None

102-50

Reporting period

The reporting period covers Fiscal 2020 (January 1, 2020 to December 31, 2020).

102-51

Date of most recent report

This is the Maiden Edition of the report.

102-52

Reporting cycle

Annual

102-53

Contact point for questions

regarding the report

Chief Strategy Officer, Dr. Muhammad-Kabir

102-54

Claims of reporting in accordance

with the GRI Standards

This report has been prepared according to

GRI Standards: Core Option.

102-55

GRI content index

Appendix, pages 38-39

102-56 External assurance Appendix, page 4

Appendix

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 39 SUSTAINABILITY REPORT 2020 38 - GROWING SUSTAINABLY

Muhammad, +234 9 460 5108

Appendix

GRI Standards Reference Table

Disclosure Number

Description

2020 Reference/Response

GRI 102: General Disclosures

Organizational Profile

102-1

Name of the organization

Jaiz Bank PLC

102-2

Activities, brands, products, and

services

INTRODUCTION -Jaiz Bank Overview.

Products and Services Offerings

102-3

Location of headquarters

Abuja, Federal Capital Territory . Nigeria.

102-4

Locations of operations

Jaiz Bank Network

102-6

Market served

Retail, Corporate, Institutions.

102-7

Scale of organization

Organizational Scale and Financial Synopsis.

2020 Annual Report pages 64, 89-90

102-14

Statement from senior decision-maker

Chairman’s

Statement, and Chief Executive’s

Message

102-15

Key impacts, risks and opportunities

Key Highlights, Target s for 2021,

Commitments to the UNEP FI Principles for

Responsible Banking, Alignment with the

United Nations Sustainable Development

Goals, Alignment with the Nigerian

Sustainable

Banking Principles

102-16

Values, principles, standards and norms of

behavior

Corporate Philosophy

Disclosure Number Description 2020 Reference/Response

Governance

102-18

Governance structure

Corporate Governance

102-19

Delegating authority

2020 Annual Report pages 69

102-20

Executive-level responsibility for economic,

environmental, and social topics

2020 Annual Report pages 22

102--22

Composition of the highest governance body

and its committees

2020 Annual Report pages 46-53,70-72

102-26

Role of highest governance body in setting

purpose, values, and strategy

2020 Annual Report pages 68

102-27

Collective knowledge of highest governance

body

2020 Annual Report pages 68

102-30

Effectiveness of risk management

processes

2020 Annual Report pages 35-43

Stakeholders Engagement

102-40

List of stakeholder groups

Listening to Our Stakeholders

102-42

Identifying

and selecting stakeholders

Listening to our stakeholders - Stakeholders

Group

102-43

Approach to stakeholder engagement

Listening to our stakeholders – Engagement

Methods and Frequency

102-44

Key topics and concerns raised

Listening to our stakeholders – Reflections &

Feedbacks for 2020

Reporting Practices

102-45

Entities included in the consolidated

financial statements

No subsidiary

102-46

Defining report content and

topic Boundaries

Table of Content

102-47

List of material topics

Materiality Analysis, Our Sustainability

Framework

102-48

Restatements of information

None

102-50

Reporting period

The reporting period covers Fiscal 2020 (January 1, 2020 to December 31, 2020).

102-51

Date of most recent report

This is the Maiden Edition of the report.

102-52

Reporting cycle

Annual

102-53

Contact point for questions

regarding the report

Chief Strategy Officer, Dr. Muhammad-Kabir

102-54

Claims of reporting in accordance

with the GRI Standards

This report has been prepared according to

GRI Standards: Core Option.

102-55

GRI content index

Appendix, pages 38-39

102-56 External assurance Appendix, page 4

Appendix

GROWING SUSTAINABLY - SUSTAINABILITY REPORT 2020 39 SUSTAINABILITY REPORT 2020 38 - GROWING SUSTAINABLY

Muhammad, +234 9 460 5108

SUSTAINABILITY REPORT 2020 40 - GROWING SUSTAINABLY

SUSTAINABILITY REPORT 2020 40 - GROWING SUSTAINABLY

JAIZ BANK PLCKANO HOUSE

73 RALPH SHODEINDE STREETCENTRAL BUSINESS DISTRICT

ABUJA

w w w . j a i z b a n k p l c . c o m