• Tuesday, December 03, 2024
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Jaiz Bank’s after-profit doubles to N18bn on investments

Jaiz Bank’s after-profit doubles to N18bn on investments

Jaiz Bank, a non-interest banking institution in Nigeria, saw its profit after tax surge by 182 percent in the nine months of 2024, new data surveyed by BusinessDay has revealed.

An analysis of the company’s financial statement showed the firm’s profit after tax rose to N18 billion in the nine months from N6.41 billion recorded in the corresponding period of 2023.

The surge in profits was driven by a robust growth in core income streams.

A breakdown of the statement revealed that income generated from financing contracts was N23.9 billion, marking an increase from N19.3 billion.

Similarly, income from investment activities, including Murabaha, Bai Mu’ajjal, Ijara, and other transactions rose to N30.3 billion from N11.9 billion.

The bank achieved gross earnings of N58 billion, a 75 percent increase compared to N33.04 billion.

Operating under Islamic banking principles, the Bank derives its earnings primarily from investing and financing activities.

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Fees and commissions for the period amounted to N3.6 billion, reflecting an increase from N1.78 billion, driven by Letters of Credit/trade finance income.

Total expenses for the period under review amounted to N24.8 billion, up from N15.9 billion

Notably, the bank recorded a foreign exchange gain of N96.1 million, compared to a loss of N84.0 million.

As of September 30, the bank’s total assets stood at N836 billion, an increase from N580 billion. Jaiz Bank’s total 44 percent growth in total assets was driven by its investment in sukuk to N200 billion from N152 billion.

Total liabilities also increased to N798 billion from N540 billion, driven by customer’s current deposits. Deposits from customers reported by the bank grew to N324 billion from N224 billion on current account growth.

The bank’s cash position, however, increased, as a net in cash and cash equivalent of N88 billion was reported in September from N87 billion reported in September 2023.

Its total cash and cash equivalent at the end of the period amounted to N292 billion year on year from N204 billion.

Further analysis of its Net cash flow statement shows that the cash generated from the bank’s operations fell, amounting to N138 billion from N164 billion. However, during the period, on the back of dividends paid which amounted to a negative N1.38 billion, the bank’s net cash generated from financing amounted to a negative N1.38 billion.

Net cash provided by (used in) investing activities also recorded a loss of N48.7 billion, compared to N75.3 billion.

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