Jaiz Bank Posts N8.08bn Pre-Tax Profit in Q1 2026 as Financing Income Surges 52.88% to N14.8bn

Olufemi Adeyemi

In another solid quarterly performance, Jaiz Bank Plc delivered a pre-tax profit of N8.08 billion for the quarter ended March 2026, marking an improvement from N7.04 billion recorded in the same period of 2025. The result reinforces the lender’s steady growth trajectory following its strong 2025 full-year performance, where pre-tax profit expanded by 27.83% year-on-year to N31.2 billion, supported largely by improved financing and investment income streams.

While profitability continued its upward trend, the quarter also reflected rising operating costs and mixed performance across non-interest income lines, signaling both strength in core banking activities and emerging pressure points in efficiency management.

Financing and investment income remain the growth engine

The bank’s core earnings engine—its financing and investment operations—posted strong double-digit growth across key categories.

Income from financing contracts surged by 52.88% year-on-year to N14.8 billion, driven primarily by Sharia-compliant financing structures. Within this segment, Murabaha transactions contributed the largest share at N11.9 billion, underscoring their continued dominance in the bank’s financing portfolio. Other contributors included Ijara transactions at N2.2 billion, alongside earnings from Bai Mu’ajjal arrangements.

Investment activities also delivered steady gains, with income rising 15.01% to N12.7 billion. The performance was heavily supported by sovereign and fixed-income instruments, particularly Sukuk investments, which generated N10.2 billion, while interbank placements contributed N1.2 billion and trading assets added N1.1 billion.

Combined, gross income from financing and investment activities reached N27.5 billion, reflecting a 32.76% year-on-year increase.

After accounting for an impairment charge of N300 million, net income from these activities stood at N27.2 billion, representing a 32.10% increase compared to the previous year.

Higher expenses weigh on bottom line momentum

Despite strong top-line growth, the bank faced a noticeable rise in costs. Total expenses climbed significantly to N14.02 billion, compared with N8.8 billion in the corresponding period of 2025.

This increase was partially offset by strong returns from equity investor participation, where the bank’s share as equity investor and mudarib rose to N21.1 billion, up from N14.8 billion a year earlier, after deducting a N6.1 billion return on equity investment account holders’ expense.

On the non-core income side, performance was weaker. Net fees and commissions declined to N896.9 million from N1.06 billion, reflecting reduced transactional income momentum.

When combined with operating income of N150.4 million and an unrealized exchange loss of N83.6 million, total income settled at N22.1 billion, representing a 39.23% year-on-year increase.

After deducting expenses and a tax charge of N242.6 million, post-tax profit came in at approximately N7.8 billion, a 14.37% increase year-on-year, even though pre-tax profit stood slightly higher at N8.08 billion.

Balance sheet expands to N1.3 trillion

On the balance sheet side, Jaiz Bank recorded modest expansion in its asset base, with total assets rising to N1.3 trillion from N1.28 trillion at the end of 2025.

Interbank investments remained the largest asset category, totaling N370.2 billion, highlighting the bank’s continued preference for liquidity management through short-term placements.

Liabilities also grew in line with asset expansion. Customer current deposits stood at N706.3 billion, making them the largest liability item, followed by unrestricted investment accounts of N449.3 billion, bringing total liabilities to approximately N1.2 trillion.

Shareholders’ funds improved to N98.5 billion, with retained earnings steady at N28.8 billion, maintaining their position as the largest component of equity.

Stock performance and market sentiment

On the Nigerian Exchange, Jaiz Bank’s share price is currently trading around N9.00, notably below its recent peak of N14.05 recorded on 25 February 2026.

Market observers suggest the valuation gap could present a potential entry point for investors, particularly if earnings momentum continues and sentiment improves. At current levels, the stock is seen by some analysts as being positioned for possible re-rating, especially if it revisits its earlier high above the N14 mark.