BUSINESS

Jaiz Bank’s annual profit up 69% as revenue surpasses N33 billion

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Jaiz Bank recorded a 68.5 per cent improvement in net profit for 2022, the bank’s audited earnings report showed on Friday.

The Abuja-based non-interest bank’s performance was helped by considerable growth in its key income streams.

The bank, which is on course to adopt a holding company structure, posted an increase of about 30 per cent in revenue, with gross earnings jumping to N33.4 billion.

While income from financing contracts contributed N21.6 billion of that sum, income from investment activities accounted for N9.9 billion. Fees & commission and other operating income contributed the rest.

Jaiz Bank paid N6.9 billion as a return to equity investment account holders compared to the N4.9 billion paid the previous year.

It counts Mohammed Indimi (founder/chairman of Oriental Energy Resources), Dantata Investment & Securities Limited, Umaru Mutallab (its former chairman and an ex-chairman of FirstBank Plc), Altani Investment Limited, Islamic Development Bank and Dangote Industries Limited as its top shareholders.

The six hold 67.9 per cent of the bank’s shares between them, according to the annual report.

Other income for the year fell 39 per cent to N340.1 million after a sharp drop in the bank’s wakala income – income derived from deposits received from corporate and high-net individuals and invested in a specific venture agreed with them.

The bank cut unrealised foreign exchange loss to N143 million from N214.7 million a year earlier.

Operating expenses shot 37.9 per cent to N6.6 billion, the major pressure point being a dramatic surge in directors’ expenses.

The company spent N1.1 billion on costs including directors’ training, directors’ fees, sitting allowance and the accrued severance package of its immediate past CEO, more than three times what it spent on similar purposes in 2021.

Pre-tax profit accelerated by 59.5 per cent to N6.6 billion, while profit after tax stood at N6.9 billion from N4.1 billion.

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