JAIZ Bank Plc’s operating expenses grew faster than its income in the nine months ended September 2026, limiting profit growth to 1.8 percent despite a 16.4 percent increase in gross income.
The bank’s unaudited financial statements showed that profit after tax rose marginally to N23.28 billion from N22.88 billion recorded in the corresponding period of 2025.
Profit before tax increased by 1.7 percent to N23.69 billion from N23.29 billion, indicating that the growth in the bank’s income translated into only a slight improvement in earnings.
Gross income from financing and investment transactions rose to N84.01 billion from N72.18 billion, driven by higher income from financing contracts.
Income from financing contracts increased by 47.3 percent to N45.87 billion from N31.14 billion, while income from investment activities declined by seven percent to N38.14 billion from N41.03 billion.
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However, impairment charges on financing and investment assets increased to N1.28 billion from N1.05 billion.
Returns to equity investment account holders also rose to N23.74 billion from N19.24 billion, reducing the income available to the bank.
Operating costs outpace income
The bank’s operating expenses climbed by 22.1 per cent to N39.46 billion from N32.31 billion, outpacing the 13.7 percent growth in net income.
Staff costs accounted for a significant portion of the increase, rising to N17.20 billion from N12.61 billion
Other operating expenses increased to N19.87 billion from N17.91 billion, while depreciation and amortisation rose to N2.39 billion from N1.79 billion.
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The faster growth in expenses weakened the bank’s cost efficiency, limiting the improvement in profitability despite stronger income from financing activities.
Assets and deposits expand
Jaiz Bank’s total assets increased by 31.6 percent to N1.69 trillion as of September 30, 2026, from N1.29 trillion at the end of December 2025.
Customer current deposits grew by 30.3 percent to N943.48 billion from N724.05 billion, reflecting an expansion in the bank’s deposit base.
Financing assets increased to N305.25 billion from N246.77 billion, while inventory financing rose to N92.45 billion from N61.78 billion.
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However, cash and balances with the Central Bank of Nigeria increased to N343.14 billion from N214.54 billion.
Amounts due from other banks and financial institutions also rose sharply to N509.90 billion from N174.57 billion.
The expansion in these balances came alongside growth in customer deposits, while shareholders’ funds declined by approximately five percent to N93.60b billion from N98.50 billion.
The decline in shareholders’ funds contrasts with the expansion in the bank’s balance sheet, although the financial position statement alone does not establish the reasons for the reduction.
