Jaiz Bank rakes in N925 million profit in Q3

Jaiz Bank’s profit for the nine months ended September 31st, 2022 increased by 20 percent to N925 million.

The report shows that income from financing contracts was up from N3.5 billion to N5.7 billion, driven by income from Murabaha transactions and Murabaha profit–corporate.

Murabaha transaction is an Islamic financing structure in which the seller and buyer agree to the cost and markup of an asset, which takes the place of interest.

Income from investment activities also went up to reach N2.5 billion, from N2.3 billion recorded last year as the company realized N504 million and N2 billion respectively from trading assets and Sukuk, a sharia-compliant bond-like instrument used in Islamic finance.

This led to an increase in the gross income from financing transactions to N8 billion from N5.9 billion.

Fees and commission income for the period grew to N365 million in Q3 2022 from N218 million in Q3 2021. This is as the bank recorded a spike in banking services and net income from its e-business for the period, however, other operating income saw a low record of N2.9 million compared to N148 million during the period.

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Staff costs increased to reach N2.1 billion from N1.98 billion as a result of the increase in Salaries, Pension training, and seminar as well as other expenses.

Similarly, operating expenses were up to reach N1.96 billion from N1 billion the previous year, and profit before tax was valued at N1.4 billion from N970 million, driven by massive growth in the advertising and marketing bonus and benefits and among others.

Earnings per share for the period increased slightly to N2.68 in Q3 2022 compared to the previous year at N2.62. The company’s total assets reached N325 billion in Q3 2022 compared to N279 billion in the same period of the previous year.