JAIZ BANK PLC 9M 2025 – Resilient Earnings Growth and Strategic Financing Drive Robust Performance

Executive Summary

Jaiz Bank Plc reported a solid performance for the nine months ended 30 September 2025, reflecting steady growth in gross earnings, disciplined cost management, and strong net income from financing and investment activities. The Bank posted gross earnings of ₦82.87 billion, representing growth from ₦76.41 billion in 2024, supported by financing and investment income. Profit before tax for the period reached ₦23.48 billion, up from ₦18.11 billion in the prior comparable period, while profit after tax stood at ₦23.48 billion, reflecting improved operational efficiency and prudent risk management. Total comprehensive income mirrored PAT at ₦23.48 billion, reinforcing sustained value creation for shareholders. Earnings per share (EPS) rose to 66.38 kobo, up from 52.42 kobo in 2024, highlighting earnings resilience. On the balance sheet, total assets expanded to ₦1.34 trillion, up from ₦1.08 trillion, driven by growth in cash balances, financing assets, and interbank placements. Total liabilities increased to ₦1.28 trillion, largely from higher customer deposits, while shareholders’ equity remained strong at ₦68.34 billion, demonstrating robust capitalization.

Financial Highlights – Statement of Profit or Loss and Other Comprehensive Income

₦’000 9M 2025 9M 2024

Gross Earnings 82,874,821 76,408,063

Income from Financing & Investment 76,574,396 72,177,718

Net Income after Provisions 76,574,396 72,177,718

Bank’s Share as Equity Investor/Mudarib 55,288,567 55,288,567

Fees and Commission (Net) 5,473,032 5,473,032

Other Income 849,626 849,626

Total Income 61,755,324 61,755,324

Total Operating Expenses (24,444,875) (24,444,875)

Profit Before Tax 23,484,251 18,107,374

Profit for the Period 23,484,251 18,107,374

Total Comprehensive Income 23,484,251 18,107,374

EPS (Basic & Diluted, kobo) 66.38 52.42

Earnings and Operational Performance

• Net Income Growth: Profit before and after tax increased 29.7% YoY to ₦23.48 billion, reflecting robust financing and investment operations.
• Fee Income: Fees and commission remained steady, contributing meaningfully to total income.
• Cost Management: Operating expenses were contained, supporting a healthy cost-to-income ratio.
• EPS Growth: Basic and diluted EPS increased to 66.38 kobo, highlighting consistent shareholder value creation.

Balance Sheet Overview

₦’000 30-Sep-2025 30-Jun-2024 Change

Total Assets 1,343,473,782 1,080,746,982 +24.2%

Cash & Balances with CBN 297,788,790 238,764,980 +24.7%

Due from Banks & Other FIs 371,279,863 142,401,137 +160.7%

Investment in Sukuk 297,653,244 349,556,203 –14.9%

Financing Assets (Net) 234,425,074 215,254,217 +8.9%

Inventory Financing (Net) 94,885,231 58,340,129 +62.7%

Property & Equipment (Net) 20,165,312 5,044,329 +300%

Leasehold Improvement (Net) 4,425,638 24,038,137 –81.6%

Intangible Assets (Net) 59,758 108,756 –45%

Other Assets 583,118 673,262 –13.4%

Total Liabilities 1,275,129,273 1,009,281,215 +26.4%

Customer Current Deposits 643,532,564 493,599,402 +30.3%

Other Liabilities & Funding 28,999,627 411,188,555 –92.9%

Total Equity 68,344,509 71,465,767 –4.3%

Interpretation:

• Asset Growth: Total assets expanded 24% YoY, supported by growth in cash, due-from-bank balances, and financing assets.
• Deposit Base: Customer deposits grew 30%, reflecting strong retail and corporate client acquisition.
• Equity Position: Total equity remains robust at ₦68.34 billion, though slightly lower than prior year, due to adjustments in retained earnings and reserves.
• Leverage: The bank maintains a stable funding structure, with a balanced mix of deposits and investment accounts.

Strategic Highlights & Operational Developments

• Financing Growth: Expansion of financing and inventory assets underpinned net income growth.
• Investment Strategy: Strategic investments in sukuk and interbank placements contributed to total income despite lower yields on certain holdings.
• Operational Efficiency: Cost containment and disciplined expense management supported profitability.
• Risk Management: Provisioning and regulatory reserves maintained in line with Shariah-compliant banking standards.

Strengths

• Robust growth in financing and investment income.
• Strong deposit mobilization and expanding client base.
• Healthy EPS growth and sustainable profitability.
• Diversified funding sources including unrestricted investment accounts.

Weaknesses

• Sukuk investment exposure declined YoY, impacting yield.
• Leasehold improvements significantly lower than prior year due to asset reclassification.
• Slight reduction in equity due to retained earnings adjustments.

Outlook

Jaiz Bank is well-positioned for sustained growth in FY 2025, with continued expansion in financing assets and investment income expected to drive profitability. Management’s focus on efficient cost control, asset-liability optimization, and Shariah-compliant product growth will underpin earnings resilience, despite potential market volatility and interest rate pressures.

Analyst View

“Jaiz Bank Plc demonstrated solid nine-month performance, with strong growth in financing income and strategic deposit mobilization. The bank’s balanced funding mix, prudent cost management, and sustainable profitability provide a robust foundation for continued growth and value creation for shareholders.”

Conclusion

Jaiz Bank’s 9M 2025 results reflect robust earnings growth, disciplined cost management, and strategic asset expansion, positioning the bank for sustained profitability and financial stability. With strong operational fundamentals and a growing financing portfolio, Jaiz Bank is well-prepared to capitalize on emerging market opportunities.