Jaiz Bank blockbuster earnings performance lifts share price by 9.1%

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Jaiz Plc

Jaiz Bank blockbuster earnings performance lifts share price by 9.1%

Jaiz Bank Plc (www.jaizbankplc.com) has reported an impressive earnings performance this season, as non-interest lender significantly grew profit for the year by 114%.

Specifically, Jaiz bank profit after tax pitched at N1.786 billion in 2019 compare to N834.36 billion raked in 2018.

Stock market also reacts positively to the earning release as stock price jumps by 9.1% to 72 kobo.

Non-interest lender’s market cap hit N21.214 billion on shares outstanding of 29,464,249,300. Year to date return is positive at 6.45%.

Today on the bourse, Jaiz share was traded at 66 kobo before it hit demands point at 72 kobo.

In a surprise move, the lender raise profitability bar above initial guide for the year. This suggests an increasing understanding of Islamic finance products.

Jaiz is the first fully fledged non-interest financial institution in Nigeria.

The Bank was granted a banking licence to carry on the business of non interest banking and commenced operation on January 6th, 2012 with three branches in two states and the Federal Capital Territory.

In its unaudited financial statement submitted to the Nigerian Stock Exchange today, the banks achieved gross income of N13.517 billion representing about 80% year on year growth in bottom line.

However, lender’s net spread after provisions settled at N9.445 billion, having expanded by about 63% from N5.8 billion in the corresponding period.

In addition to Jaiz net spread, the bank reported marginal increase in fees and commission income from N988.4 million to N1 billion in the year.

This pushed total income to N10.64 billion, as against N7.059 billion in 2018.

The bank operating expenses however surged to N8.541 billion from N6.161 billion on the back of N1 billion increase in staff cost and overheads.

For the year, at the growth rate of 114% year on year, Jaiz profit after tax came stronger than expected beat analysts’ consensus.

Customers current deposits ballooned surged by about 52%, berthed at N69.603 billion as against N45.95 billion in the corresponding year.

The Islamic bank increase total assets by 53% from N108.462 billion in 2018 to N166.837 billion. Shareholders fund remains flat year on year at N13.109 billion.

Follow up on detail analysis on JAIZ Plc.

Jaiz Bank blockbuster earnings lift share price by 9.1%