• Monday, July 15, 2024
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Jaiz Bank grows profit to N6.9 bn, highest in five years

Jaiz Bank grows profit to N6.9 bn, highest in five years

Nigeria’s premier and non-interest bank, Jaiz Bank Plc, recorded significant income growth and profitability growth in 2022, with the bank’s after-tax profit rising by 69 percent to N6.9 billion, the highest in five years.

Pre-tax profit accelerated by 59.5 percent to N6.6 billion, while profit after tax stood at N6.9 billion from N4.1 billion recorded in the previous year.

The bank also had an increase of 29.4 percent in gross earnings to N33.42 billion in 2022 from N25.84 billion in 2021.

Income from financing contracts contributed N21.6 billion of that sum, income from investment activities accounted for N9.9 billion and Fees & commission contributed N1.64 billion.

Jaiz Bank paid N6.9 billion as a return to equity investment account holders compared to the N4.9 billion paid the previous year.

Other income for the year fell 39 per cent to N340.1 million after a sharp drop in the bank’s Wakala income to N81.9 million in 2022 from N359.8 million – income derived from deposits received from corporate and high-net individuals and invested in a specific venture agreed with them.

The bank cut unrealised foreign exchange loss to N143 million from N214.7 million a year earlier due to the foreign currency revaluation, which declined to N143 million in 2022 from N214.7 million recorded in the previous years.

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Operating expenses shot 37.9 percent to N6.6 billion, the major pressure point being a dramatic surge in administrative expenses, which recorded an increase to N 2.45 billion from N2.17 billion and directors’ expenses to N1.1 billion from N341.7 million recorded in the previous year.

The N1.1 billion spent on director’s expenses were recorded as costs including directors’ training, fees, sitting allowance and the accrued severance package of Hassan Usman, immediate past CEO, more than three times what it spent on similar purposes in 2021.

Total assets also grew by 36 percent to N379.8 percent recorded in 2022 from N279.3 in 2021.

An increase in total assets was seen from an increase in investment in sukuk which stood at N75.7 billion, financing assets of N136.97 billion and balances with the Central Bank of Nigeria of N93 billion, among other things.

The bank also recorded an increase in deposits by 39.4 percent at the end of its financial year, to N291.5 billion in 2022 from N209.1 billion in 2021.

Cash and cash equivalents stood at a 67.7 percent increase to N117.1 billion recorded at the end of 2022, from N69.8 billion in 2021.

Total equity recorded at the end of 2022 was N29.8 billion, a 22.6 percent increase from N24.31 billion recorded in 2021.

The Bank’s earnings per share for the period under review also grew by 39.1 percent to N19.2 kobo from 13.8 kobos as at end of December 2021.