Jaiz Bank Grows Profit by 42% in 2022
Nigeria’s premier Islamic lender, Jaiz Bank Plc, grew its distributable profit by 41.56% in the financial year 2022 amidst a tough economic environment, the non-interest lender said in a regulatory filing.
Rising from N4.299 billion declared in the financial year 2021, Jaiz bank boosted its profit after tax to N6.086 billion in 12-month. Meanwhile, the bank’s earnings per share (EPS) grew to 17.62 kobo.
This translates to a 27.68% jump above 13.8 kobo recorded in 2021 following an increase in issued ordinary shares in 2022. The growth in the bank’s bottom line was driven by a strong topline seen in 2022 following improved capital position after a shareholder’s capital injection in the course of the year.
The bank’s gross income from contracts its finance in the year jumped to N31.450 billion, up from N24.177 billion in the comparable period in 2021. Despite a strong surge in top line performance, the Islamic lender’s impairment charges steadied, from N3.720 billion in 2021 to N3.88 billion.
Jaiz Bank’s share as equity investors (mudarib) spiked to N27.561 billion in 12-month, up 34.73% when compared with N20.456 billion reported in the financial year 2021.
This profit sharing was supported by a relatively strong increase in its income from financing activities which jumped 41.98% to N21.588 billion in 2022, from N15.205 billion in the comparable period.
Meanwhile, income from investing activities grew moderately to N9.861 billion from N8.972 billion a year ago despite a return to high interest rate environment in Nigeria. Jaiz Bank however plays less in interest collection on assets.
In 2022, Jaiz bank paid its equity investors N6.90 billion, a significant increase of 39.7% when compared with N4.939 billion disbursed in 2021.
While the bank recorded an increase in its fees and commission line to N1.638 billion from N1.108 billion in 2021, other income fell to N340 million year on year, from more than N557 billion it reported in the comparable period.
Overall, total income accrued to the Islamic lender printed at N22.635 billion at the end of the financial year 2022, a sharp rise of 31.73% when compared with N17.182 billion it reported in 2021.
Amidst the double-digit high headline inflation rate in Nigeria, the non-interest bank saw its total expenses jump to N15.965 billion in 2022. This was 24.64% above N12.809 billion used to run its operations in the comparable period in 2021.
This left the bank with N6.669 billion pre-tax profit, representing an increase of 52.54% against N4.372 billion reported in 2021.
The total asset base of the Islamic lender has expanded to N378.692 billion in the last 12-month from N279.275 billion, supported by strong growth in its Sukuk investment, Murabaha receivables, Investment in ijara assets and Cash and balances with the Central Bank of Nigeria. # Jaiz Bank Grows Profit by 42% in 2022
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