Jaiz Bank plc on Sunday confirmed recording a well-rounded performance in the first quarter of this year as the Nigeria’s premier non-interest commercial bank continued to improve its cost efficiency and risk management.
Key extracts of the three-month report for the period ended March 31, 2019, released to the Nigerian Stock Exchange (NSE) show that gross earnings rose by 38.7 percent while pre- and post-tax profits jumped by 225.08 percent and 244.19 percent, respectively. Earnings per share rose by 190 percent.
The three-month report indicated that gross earnings rose to N2.59 billion in first quarter 2019 as against N1.87 billion in first quarter 2018. Gross profit grew by 51.9 percent increased from N1.39 billion to N2.11 billion. Profit before tax jumped from N146.57 million to N476.46 million.
After taxes, net profit rose to N428.68 million in first quarter 2019 compared with N124.58 million in first quarter 2018. Consequently, earnings per share increased to 1.45 kobo in first quarter 2019 as against 0.50 kobo in corresponding period of 2018.
The first quarter performance further consolidated the growth trajectory of the alternative banking pioneer and raised strong prospect of Jaiz Bank substantially, surpassing its full-year performance in 2018 in the current business year. The net profit in first quarter 2019 is more than half of the full-year net profit recorded in 2018.
Its recently released audited report, accounting for the year ended December 31, 2018, shows 55 percent growth in net profit to N834.37 million. Gross earnings rose by 11 percent from N7.86 billion in 2017 to N8.74 billion in 2018. Profit before tax increased from N894.01 million to N897.70 million. After taxes, net profit rose from N537.12 million to N834.37million.
The balance sheet shows stronger underlying strength during the period. Total assets rose by 24 percent from N87.31 billion to N108.46 billion. Deposits also grew by 25 percent from N68.12 billion in 2017 to N85.03 billion in 2018. It expanded its financing and investment activities by 37 percent to N69.36 billion in 2018, as against N50.79 billion in 2017.
Jaiz Bank, as a non-interest bank, makes profit basically from profit sharing on investments and gains on trading activities.
Key underlying ratios showed improvements in returns and operational strength of the bank. Return on assets rose by a quarter from 0.6 percent in 2017 to 0.8 percent in 2018. While cost-to-income inched up from 85.84 percent to 87.28 percent, return on equity improved from 6.54 percent to 6.85 percent.
Capital adequacy remains considerably above regulatory threshold at 21.13 percent while liquidity ratio increased by 50 percent from 18.64 percent to 27.94 percent. Staff strength and number of branches also increased by 6.0 percent and 16 percent, respectively.
Managing director, Jaiz Bank, Hassan Usman, said the 2018 results further demonstrated that the bank had the capacity to grow sustainably in line with its strategic vision of becoming the leading non-interest bank in sub-Saharan Africa by 2022.
He assured that while maintaining steady focus on elements that contributed to improved performance in 2018, the bank shall work harder to optimise its potential in order to deliver better returns in 2019.
