Improved earnings momentum helped Jaiz Bank Plc close the 2025 financial year on a stronger footing, as higher income from financing and investment activities lifted profitability despite rising costs and weaker fee income.
The non-interest lender reported a 28.4 per cent year-on-year increase in profit before tax to N31.3 billion, compared with N24.4 billion in 2024. The performance was underpinned by robust growth in core income lines, particularly financing contracts and investment activities.
Momentum strengthened in the final quarter of the year, with fourth-quarter pretax profit rising by 8.27 per cent to N8.1 billion, from N7.4 billion recorded in the corresponding period of the previous year. The improvement was largely driven by a surge in top-line income.
For the full year, net income from financing and investing activities rose to N97.4 billion, up from N76.5 billion in 2024. The fourth quarter accounted for N26.3 billion of this amount, compared with N22.5 billion a year earlier, highlighting sustained earnings growth into year-end.
Income growth offsets cost pressures
A breakdown of earnings shows that income from financing contracts increased sharply by 43.3 per cent year-on-year to N45.9 billion, while income from investing activities rose by 17.2 per cent to N52.0 billion. Combined, these lifted net income after provisions by 27.3 per cent to N97.4 billion, despite impairment charges of N452 million, compared with an impairment gain of N166.3 million recorded in 2024.
Net fees and commission income, however, declined to N3.2 billion from N5.4 billion, reflecting softer non-core income generation during the year.
Overall, total income rose by 21.1 per cent year-on-year to N74.7 billion. This increase outpaced growth in operating expenses, which rose by 16.2 per cent to N43.3 billion, allowing the bank to expand profitability.
Murabaha and sukuk drive earnings
A closer look at Jaiz Bank’s income mix shows that murabaha transactions remained the dominant source of financing income, contributing N33.4 billion. Ijara transactions followed with N10.3 billion, while other financing contracts accounted for the balance, bringing total financing income to N45.9 billion.
Investment income was even stronger, rising to N52.0 billion from N44.3 billion in the previous year. Sukuk investments accounted for the largest share at N37.4 billion, while interbank placements contributed N8.1 billion and trading assets added N6.4 billion.
After impairment charges, the bank generated N97.4 billion in net income from financing and investing activities. Of this amount, N26.8 billion was distributed to equity investment account holders, leaving N70.6 billion attributable to the bank as mudarib. When combined with net fees and commissions, total income stood at N74.7 billion, translating to pretax profit of N31.3 billion after expenses.
Balance sheet expansion continues
On the balance sheet, Jaiz Bank’s total assets increased to N1.2 trillion, up from N1.08 trillion in 2024, reflecting continued balance sheet expansion. Sukuk investments remained the largest asset class at N489.4 billion, followed by financing assets of N245.6 billion and cash and balances with the Central Bank of Nigeria (CBN) amounting to N214.5 billion.
Total liabilities also rose to N1.2 trillion, driven largely by growth in customer current deposits, which stood at N724 billion. Shareholders’ equity edged down slightly to N68.3 billion from N71.4 billion in the previous year, with retained earnings of N12.5 billion.
Market reaction
In the equities market, Jaiz Bank shares are recovering from a brief pullback that saw the stock dip below N8 on the second trading day of February 2026. The shares are currently trading at N8.05, with market sentiment turning more positive following the release of the bank’s full-year results. Analysts note that sustained earnings momentum could support a move toward the N9 level in the near term.