Jaiz Bank Plc, the non-interest banking financial services provider, expects to close the third quarter operations next September with a pre-tax profit of N4.8 billion, beating the full-year figure of N4.4 billion in 2021 in nine months.
The bank’s half-year position at the end of June 2022 shows it has already raked in N2.7 billion of target profit and forecasts to generate N1.9 billion in the third quarter.
The bank is maintaining its strong footing on the path of earnings growth, which has run consistently for many years. Over the past five years, it has grown after-tax profit by an average of 78.7 per cent, closing at a peak of N4.3 billion in 2021.
This year, after-tax profit growth is accelerating from 25 per cent in the first quarter to 33.4 per cent quarter-on-quarter in the second quarter. From N1 billion in the first quarter, after-tax profit grew to N1.5 billion in the second. The figure is expected to step up further to N1.7 billion in the third quarter.
The strength for profit performance of the bank is coming from equally sustaining growth in revenue. Gross earnings are accelerating from N7.2 billion in the first quarter to N8.1 billion in the second quarter and further to N9.8 billion in the third quarter as per forecast.
The bank is therefore expected to post gross earnings of over N25 billion at the close of the third quarter operations. That will be virtually at par with the N25.8 billion gross income the bank reported for the 2021 full year.
At the end of half-year operations, gross earnings grew by 21.7 per cent year-on-year to N15.3 billion, stepping up from 20.7 per cent in the first quarter. The bank’s revenue comes mainly from income from financing contracts, which accounted for N10 billion or over 65 per cent of gross earnings at the end of half-year operations.
The bank reinforced growing revenue with moderating operating costs, which stretched out profit margin from 15.9 per cent to 16.5 per cent over the review period.
Total operating expenses increased by 18.4 per cent year-on-year to N7.8 billion at the end of half-year operations. The cost saving was increased by a drop of 57.7 per cent in tax expenses. Some challenges on the side of costs were recorded from asset impairment charges as well as return to equity investment holders.
Impairment charges grew by 27.4 per cent year-on-year to N2 billion at the end of June, ahead of 23 per cent growth in total income from financing transactions. The resulting incursion on income lowered the rate of increase in net income to 22.3 per cent to stand at N12.3 billion.
Also, return to equity investment holders grew ahead of income by 37.7 per cent to N2.9 billion at the end of half year. The bank’s share of income increased by 18.3 per cent to N9.4 billion.
With other income of N986 million, total income amounted to N10.4 billion for the first half of the year.
The bank closed half-year operations with total assets of N313 billion built on total liabilities of N176 billion, account holders’ equity of over N112 billion and owner’s equity of N24 billion.
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