Jaiz Bank Profit Pops on Healthy Income from Contracts Financing
Jaiz Bank, Nigeria’s first and the largest Islamic lender, profit rose more than 27% in the first half of the financial year 2022, according to its latest regulatory filing on the Nigerian Exchange. The strong bottom line was supported by healthy income from financing contracts which printed at N10.087 billion, about 40.6 % above N7.175 billion reported in the comparable period last year.
Reacting to the earnings beat in the first six months result, equities investors take a higher position which saw the share price repricing in the last seven trading sessions on the local bourse. As a result, Jaiz Bank’s stock market valuation inched higher by 16% to about N30 billion on Friday’s close.
Data from the Nigerian Exchange shows that the Islamic lender’s share price closed at 86 kobo on Friday, from 0.74 kobo when its first half unaudited statement was released. In its unaudited financial statement, the non-interest bank which controls some 62% of Nigerian banking assets reported that its gross income inched up to N14.335 billion, more than 23% above N11.652 billion recorded 12-month ago.
The bank’s unaudited results show that the Islamic lender deepened its footprint in the market as more contracts were supported in the period. In the period, total profit from Murabaha transactions went up to N6.682 billion from N3.421 billion in the comparable period last year, representing more than 95% year-on-year growth.
Specifically noted was the significant increase in its Murabaha profit from corporate transactions which settled at N3.879 billion in the first half from N1.964 billion in the comparable period last year.
Also, Murabaha’s profit from retail transactions inched upward strongly to N2.027 billion, representing an increase of 92.68% above N1.052 billion declared 12-month ago. Jaiz bank’s unaudited results show that profit for the period increased by 27.6% from N1.99 billion declared in June 2021, to N2.54 billion at the end of June 2022.
Supported by growth in other operating income, fees and commission receipts, Jaiz Bank’s total income jumped by 17.8% to N10.44 billion in the first half of the financial year 2022 from N8.86 billion in the comparable period in 2021.
The outing pushed earnings per share higher by 8.25%, from 6.78 kobo for the second quarter of 2021 to 7.34 kobo at the end of the second quarter of 2022. Management said the bank’s positive earnings result is undoubtedly reassuring to all stakeholders and the public. It underscores the role of Jaiz as the pioneer Non-Interest Bank in Nigeria, as well as the industry leader.
Speaking on the result, Managing Director/CEO, Hassan Usman, said the Bank remained committed to providing value-creating ethical banking services to its growing customer base. He assured that the Bank is positioned to continue its remarkable earnings streak for the remainder of the year, by leveraging on technology and extending its touch points across the country.
The results show that Jaiz Bank’s balance sheet size expanded further in the first half, growing by 12.11% from the beginning of the year to N313.101 billion from N279.275 billion at year-end 2021. However, the Islamic lender shareholders fund dipped moderately to N24.235 billion due to a decline in other reserves from N24.305 billion six months ago. READ: Jaiz Bank Gets Ratings Upgrade on Improved Capitalisation
# Jaiz Bank Profit Pops on Healthy Income from Contract Financing