Jaiz Bank Plc is projecting a profit after tax of N8.6 billion for the fourth quarter of 2025, slightly lower than the N8.9 billion earlier forecast for the third quarter, which is yet to be released.
The forecast, published on the Nigerian Exchange and signed by the Bank’s Chief Financial Officer, Oseni Bello, outlines expectations for the final stretch of the year.
If achieved, this would bring total profit after tax for 2025 to over N32 billion, an improvement on the N24.8 billion recorded in 2024.
So far, results have tracked closely to projections.
- In the first quarter, the bank estimated N7.3 billion with Earnings Per Share (EPS) of N0.16 and reported N6.8 billion with EPS of N0.15.
- In the second quarter, it forecast N8.07 billion and achieved N7.6 billion, translating to EPS of N0.17 against a forecast of N0.18.
- For the third quarter, the forecast is N8.9 billion with EPS of N0.20. While the results are yet to be released, the bank is expected to come close to this figure or even surpass it if operations perform strongly.
With a fourth-quarter projection of N8.6 billion, the focus now shifts to the factors that could help Jaiz Bank meet or exceed expectations as it works to close the year on a stronger footing.
Strong top-line growth
Jaiz Bank’s top-line profitability remained solid in both the first and second quarters of 2025.
In the first quarter, income from financing contracts rose to N9.7 billion compared to N7.4 billion in the same period of the previous year.
- Murabaha transactions accounted for the largest share at N6.7 billion, up 37.33%, while Ijara transactions contributed N2.22 billion, up 6.69%.
- Profits from financing other investment contracts made up the balance at N579.4 million.
Income from investment activities also grew strongly, reaching N11 billion against N8 billion a year earlier, with Sukuk investments providing the bulk at N8.5 billion.
- Altogether, gross income for Q1 stood at N20.7 billion, rising from N15.5 billion in the prior year.
The second quarter followed the same trend. Income from financing contracts increased to N9.9 billion from N7.4 billion, again led by Murabaha transactions at N7 billion.
Investment activities expanded further, delivering N13.4 billion in the quarter, up 29.7%, with Sukuk investments contributing N9.4 billion.
- As a result, gross income climbed to N23.3 billion compared to N17.7 billion in the previous year.
Across both quarters, Jaiz Bank showed enough top-line growth to absorb operating expenses along the way.
Sustaining this momentum and finding new avenues to grow income could help the bank meet its profit forecasts. Still, a stronger contribution from fees, commissions, and other income would further support its performance.
Fees and other income
To achieve its targets, Jaiz Bank will need to strengthen other operating income, which was absent in the first quarter.
- According to the bank’s income statement, this category is primarily composed of miscellaneous income.
In terms of fees and commissions, the bank recorded revenue growth in Q1 with earnings of N1.5 billion compared to N1.1 billion in the same period of the previous year.
- LC and trade finance income contributed N644.4 million, net income from e-business generated N453.7 million, while banking services added N441.2 million.
In the second quarter, other operating income improved to N94.7 million, a step up from zero in Q1. However, fees and commission income fell by 36.56% to N901.6 million.
To boost performance, the bank should develop new business avenues supported by stronger planning and marketing, driving fee growth from higher transaction volumes.
While the impact may not be immediate, it remains an important focus for sustainable growth beyond 2025.
