Jaiz Bank Earnings Jumps 44% on Account of Improve Fee as Mudarib
Jaiz Bank Plc reflated its first half earnings by 44% despite the impacts of the outbreak of coronavirus pandemic on the global economy.
The non-interest lender’s earnings per share increased from ₦2.76 in the first half of 2019 to ₦3.98 in the first half of 2020.
In the Nigerian Stock Exchange, Jaiz share price traded at 55 kobo as its market capitalisation closed Wednesday trading session at ₦15.91 billion.
In its unaudited result submitted to NSE, the non-interest banking financial service boutique delivered gross income of N8 billion in the first half of 2020.
This translates to a 39.4% year on year uptick when compare with ₦5.746 billion gross income delivered equivalent period in 2019.
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Both income from the Islamic finance bank investing activities and revenue generated from contracts financed jerked up from based year.
Specifically, contracts financing activities of the bank returned total sum of ₦4.550 billion, which is 36.4% above ₦3.336 billion achieved in the first half of 2019.
Jaiz share as a Mudarib (profit from joint venture investment) swelled up by about 38% from ₦4.551 billion in the first half of 2019 to ₦6.278 billion.
Also, income from investing activities leaped to ₦3.458 billion from ₦2.409 billion, thus translating to 44% year on year growth.
The non-interest banking service firm net spread after provision settled at ₦5.318 billion in the firm half of 2020 compare to ₦4.257 billion in the comparable period in 2019.
The net spread was affected by increase in net impairment charge booked against income statement, from ₦294.142 million to ₦960.145 million.
Due to strategic investment in technological infrastructure, the bank was able to lift fee and commission income from ₦575.717 million to ₦736.188 million amidst economic lockdown.
From a negative position in the first half of 2019, Jaiz Bank other income line item returned to profitability with total other income settling at ₦179.514 million.
Meanwhile, the non-interest lender operating expenses spiked amidst rising inflation which settled at 12.56% in June, 2020.
Though, analysts see average inflation rate in the year hitting 13.1%.
Jaiz Bank recorded ₦4.887 billion as total operating expenses in the first half of 2020, which translates to about 25% year on year increase from ₦3.914 billion.
Over all, Jaiz Bank profit for the year came in at ₦1.171 billion, representing about 44% growth when compare with ₦0.814 billion delivered in the comparable period in 2019.
Meanwhile, the lender raised its balance sheet size by 11.57% from ₦167.273 billion to ₦186.625 billion.
Similarly, total liabilities increased 7% year on year to ₦100.913 billion from ₦94.131 billion in the first half of 2019.
Jaiz Bank Earnings Jumps 44% on Account of Improve Fee as Mudarib
