Jaiz Bank Plc has posted a resilient performance for the period ended March 2025 with key income lines showing growth despite prevailing macroeconomic challenges.
The non-interest bank’s unaudited statement of profit or loss and other comprehensive income reveals higher gross earnings and stronger net income after provisions.
Income Growth Driven by Financing and Investment
For the period under review, income from financing contracts stood at ₦9.74 billion, compared to ₦32.04 billion reported in March 2024.
Meanwhile, income from investment activities increased to ₦11.04 billion, up from ₦8.05 billion in the same period of 2024.
Overall, gross income from financing and investment transactions came in at ₦20.79 billion, representing a notable improvement over the ₦15.52 billion reported a year earlier.
Impairment charges swung back into negative territory with a write-back of ₦910.35 million last year shifting to an expense of ₦123.65 million in March 2025, suggesting higher provisioning on the Bank’s financing portfolio.
Consequently, net income after provisions settled at ₦20.67 billion for March 2025 versus ₦16.43 billion in the previous year.
Returns to Account Holders Remain Significant
The Bank’s return to equity investment accountholders totalled ₦5.82 billion in March 2025, lower than the ₦21.29 billion expensed a year earlier.
After accounting for this distribution, the Bank retained ₦14.85 billion as its share as mudarib, compared to ₦11.49 billion in the same period of 2024.
Fees and commission income also contributed positively, with revenue from this line item recorded at ₦1.54 billion, against ₦1.19 billion in March 2024.
However, expenses related to fees and commissions increased slightly, reaching ₦472.88 million from ₦124.29 million a year ago.
Expenses in Line with Revenue Performance
Total operating expenses rose to ₦8.83 billion in March 2025, compared to ₦6.48 billion in the prior year. Staff costs accounted for ₦3.76 billion, up from ₦2.78 billion.
Depreciation and amortisation expenses increased to ₦551.88 million from ₦342.27 million, while other operating expenses climbed to ₦4.70 billion from ₦3.36 billion.
Despite higher cost pressures, the Bank recorded a pre-tax profit of ₦7.04 billion, surpassing the ₦6 billion posted a year ago. After tax, net profit for the period was ₦6.86 billion, up from ₦5.84 billion in March 2024.
Earnings Per Share Reflects Stronger Bottom Line
The Bank’s basic and diluted earnings per share for March 2025 stood at 15.39 kobo, slightly lower than the 16.92 kobo recorded in March 2024 but significantly above the 66.38 kobo reported for December 2024, which likely reflected a year-end boost due to seasonal factors and other adjustments.
Outlook
Jaiz Bank’s latest results highlight the strength of its non-interest income streams and prudent cost management, although the higher provisioning suggests cautious positioning amid economic headwinds.
Management will likely focus on sustaining its strong retail and SME banking growth while balancing returns to equity investment account holders to ensure compliance with its Islamic banking model.
