Jaiz Bank Plc, Nigeria’s pioneer non-interest banking institution, has reported a profit after tax of ₦31.04 billion for the year ended December 31, 2025, representing a 32% increase from the ₦23.48 billion recorded in 2024, according to its unaudited financial statements released on Friday.
The Islamic bank’s total assets grew 19% to ₦1.29 trillion from ₦1.08 trillion in the previous year, underscoring its expanding footprint in Nigeria’s non-interest banking segment and the growing acceptance of Shariah-compliant financial services.
Gross earnings surged 23% to ₦102.08 billion from ₦82.87 billion in 2024, driven by robust income from financing contracts and investment activities. Income from financing contracts increased 43% to ₦45.92 billion from ₦32.04 billion, reflecting increased deployment of funds and improved yields in the non-interest banking space.
Income from investment activities grew 17% to ₦52.01 billion from ₦44.37 billion, demonstrating the bank’s ability to optimise its sukuk investments and other Shariah-compliant investment instruments.
News.ng reports that gross income from financing and investment transactions, net of provisions, reached ₦97.93 billion compared to ₦76.41 billion in 2024, with impairment charges (write-backs) showing a net recovery of ₦452.08 million compared to a charge of ₦166.33 million in the prior year.
According to the statements, net fees and commission income declined 40% to ₦3.28 billion from ₦5.47 billion in 2024. Fees and commission revenue decreased to ₦5.76 billion from ₦6.02 billion, while fees and commission expenses increased significantly to ₦2.48 billion from ₦547.49 million, suggesting higher transaction processing costs and partnership expenses.
Other operating income increased 29% to ₦1.09 billion from ₦849.63 million, while the bank recorded an unrealised exchange loss of ₦226.40 million compared to a gain of ₦144.10 million in the previous year, reflecting naira volatility.
Total income reached ₦74.76 billion, up 21% from ₦61.76 billion in 2024.
Operating expenses increased 16% to ₦43.37 billion from ₦37.31 billion, growing at a slower pace than revenue. Staff costs rose 32% to ₦18.19 billion from ₦13.76 billion, reflecting expanded headcount and inflationary pressures on compensation.
Depreciation and amortisation increased 25% to ₦2.30 billion from ₦1.83 billion, while other operating expenses rose 5% to ₦22.88 billion from ₦21.72 billion.
Profit before tax stood at ₦31.39 billion, up 28% from ₦24.44 billion, with income tax expense declining 63% to ₦351.62 million from ₦960.62 million, resulting in an effective tax rate of approximately 1.1%.
Earnings per share increased 5% to 69.62 kobo from 66.38 kobo in 2024, providing positive returns to shareholders.
The bank demonstrated strong momentum in the final quarter, with gross earnings of ₦26.88 billion in Q4 2025 compared to ₦26.74 billion for the December 2024 quarter, although this remains below the full-year gross earnings of ₦82.87 billion recorded in 2024.
Profit for the three months ended December 2025 stood at ₦8.02 billion, representing 26% of the full-year profit, with earnings per share of 17.98 kobo for the quarter.
Cash and balances with the Central Bank of Nigeria declined 10% to ₦214.54 billion from ₦238.76 billion, while amounts due from banks and other financial institutions increased 23% to ₦174.57 billion from ₦142.40 billion.
Investment in sukuk grew 40% to ₦489.49 billion from ₦349.56 billion, representing the bank’s largest asset class and demonstrating a strong appetite for Shariah-compliant government securities. Interbank investments rose 4% to ₦50.12 billion from ₦48.13 billion.
Financing assets (net) increased 14% to ₦245.69 billion from ₦215.25 billion, indicating growing customer financing activities. Inventory financing (net) expanded significantly to ₦63.20 billion from ₦58.34 billion.
Other assets increased substantially to ₦17.85 billion from ₦4.43 billion, a 303% surge suggesting strategic investments or reclassifications. Leasehold improvements (net) grew 35% to ₦27.67 billion from ₦20.17 billion, while intangible assets (net) declined 47% to ₦57.83 million from ₦108.76 million.
Property and equipment (net) decreased 9% to ₦615.19 million from ₦673.26 million, while deferred tax assets increased marginally to ₦2.93 billion from ₦2.93 billion.
Customer current deposits surged 47% to ₦724.05 billion from ₦493.60 billion, representing the bank’s largest liability and demonstrating strong retail and corporate deposit mobilisation.
Customers’ unrestricted investment accounts declined 4% to ₦394.28 billion from ₦411.19 billion, suggesting some rebalancing of customer preferences toward current accounts. Other funding decreased to ₦22.33 billion from ₦29.00 billion.
Other liabilities increased 4% to ₦77.19 billion from ₦73.90 billion, while tax payable declined 67% to ₦531.63 million from ₦1.59 billion, benefiting from prior-period tax credits or adjustments.
Total liabilities grew 21% to ₦1.22 trillion from ₦1.01 trillion.
Total owners’ equity declined 4% to ₦68.34 billion from ₦71.47 billion, primarily due to a decrease in retained earnings to ₦12.57 billion from ₦15.69 billion, suggesting dividend distributions during the period.
Share capital and share premium remained unchanged at ₦22.29 billion and ₦6.37 billion, respectively. The risk regulatory reserve stood at ₦8.61 billion, while statutory reserves remained at ₦15.76 billion. Other reserves were unchanged at ₦2.74 billion.
The bank recorded a return to equity investment account holders (mudarib) of ₦26.86 billion, up from ₦21.29 billion in 2024, reflecting improved profitability of investment accounts.
The bank’s share as equity investor (mudarib) was ₦70.61 billion compared to ₦55.29 billion in the previous year, demonstrating the profit-sharing model inherent in Islamic banking.
Jaiz Bank’s performance reflects the growing acceptance and maturation of non-interest banking in Nigeria. As the pioneer Islamic bank, its 32% profit growth and 19% asset expansion demonstrate the viability and competitiveness of Shariah-compliant banking products.
The 40% growth in sukuk investments to ₦489.49 billion positions the bank to benefit from the government’s increasing issuance of Islamic bonds, while the 47% surge in current deposits to ₦724.05 billion provides a stable, low-cost funding base for future growth.
However, the 40% decline in fee income and the 4% decrease in shareholders’ equity warrant attention. The bank will need to diversify revenue streams beyond financing and investment income while strengthening its capital base to support continued asset growth and meet regulatory requirements.
With earnings per share of 69.62 kobo and a solid balance sheet, Jaiz Bank appears well-positioned to capitalise on Nigeria’s untapped potential for Islamic finance. The bank’s ability to maintain asset quality, grow its customer base, and expand its product offerings will be critical to sustaining its growth trajectory and market leadership in the non-interest banking segment.
