Jaiz Bank Plc Grows Q1 Profit to N7.85 Billion on Strong Financing Income

Jaiz Bank Plc recorded a stronger financial performance in the first quarter (Q1) of 2026 as higher financing and investment income lifted profitability despite rising operating expenses and declining customer deposits.

According to the bank’s unaudited financial statements for the period ended March 31, 2026, profit after tax rose to N7.85 billion from N6.86 billion recorded in the corresponding period of 2025, representing a 14.4 percent increase.

Profit before tax increased from N7.04 billion in the first quarter of 2025 to N8.09 billion during the review period as financing contracts and investment activities generated stronger returns.

Gross earnings climbed to N28.26 billion from N21.70 billion in the corresponding period of 2025.

Income from financing contracts rose significantly to N14.89 billion compared to N9.74 billion reported a year earlier while income from investment activities increased to N12.70 billion from N11.05 billion.

Gross income from financing and investment transactions stood at N27.60 billion, up from N20.79 billion in the corresponding period.

However, impairment charges increased to N300 million from N123.65 million, reflecting higher provisioning during the quarter.

Jaiz Bank’s total assets expanded to N1.31 trillion as of March 31, 2026, compared to N1.29 trillion recorded at the end of the 2025 financial year.

Cash and balances with the Central Bank of Nigeria rose sharply to N273.23 billion from N214.54 billion while balances due from banks and financial institutions increased to N273.15 billion from N174.57 billion, indicating stronger liquidity position.

Financing assets rose to N271.46 billion from N246.77 billion while inventory financing increased to N80.20 billion from N61.78 billion.

Interbank investments, however, declined significantly to N5 billion from N50.12 billion, suggesting reduced exposure to short-term placements.

On the liabilities side, customer current deposits fell to N706.30 billion from N724.05 billion while other funding obligations rose sharply to N394.28 billion from N11.64 billion.

Analysts said the significant increase in funding liabilities may increase future financing costs if market liquidity conditions tighten further.

Operating expenses also increased during the quarter as staff costs rose from N3.58 billion to N5.67 billion while other operating expenses climbed to N7.66 billion from N4.70 billion.

Total expenses rose to N14.02 billion from N8.84 billion recorded in the corresponding period of 2025.

Despite rising costs, the bank maintained earnings growth as earnings per share improved to 17.6 kobo from 15.39 kobo in the previous year.

Jaiz Bank closed the quarter with shareholders’ funds of N98.50 billion and maintained strong reserve positions across statutory, regulatory and retained earnings accounts.