Jaiz Bank posts $5.72M Q1 profit as sukuk income, deposits surge

Jaiz Bank Plc, Nigeria’s leading non-interest lender, posted a net profit of $5.72 million for the first quarter of 2026, underscoring rising demand for Islamic banking products in Africa’s largest economy.

The N7.85 billion ($5.72 million) profit marks a 14.37% increase from a year earlier, driven by higher sukuk income, Murabaha financing, and investment activity. Gross income rose by 32.76% to N27.6 billion ($20.14 million) from N20.79 billion ($15.17 million).

Profit growth outpaces rising costs

Total income rose by 39.23% from N15.88 billion ($11.59 million) to N22.11 billion ($16.14 million), driven by stronger income from financing contracts, higher sukuk investment returns, and increased interbank investment earnings amid rising demand for non-interest banking products in Nigeria.

Gross income from financing and investment transactions rose to N27.6 billion ($20.14 million), reflecting stronger returns from sukuk instruments and interbank placements. Income from financing contracts climbed to N14.89 billion ($10.87 million), while investment income reached N12.7 billion ($9.27 million).

Operating expenses increased to N14.02 billion ($10.23 million), driven by higher staff costs and administrative spending. Staff expenses rose to N5.67 billion ($4.14 million), while other operating costs reached N7.66 billion ($5.59 million). Despite this, earnings per share improved to N0.176 from N0.154.

Deposits remain above N1 trillion

Customer deposits stood at N1.16 trillion ($843.4 million), a total of customer current deposits now N706.30 billion ($515.17 million) and unrestricted investment accounts now N449.32 billion ($327.73 million), with corporate clients accounting for the largest share. The sustained deposit growth underscores rising adoption of non-interest banking products among retail and institutional investors in Nigeria.

Sukuk investments strengthen liquidity

Jaiz Bank expanded its sukuk portfolio to N370.26 billion ($270.2 million), maintaining exposure to sovereign, state, and corporate Islamic debt instruments. Cash and cash equivalents rose sharply to N546.38 billion ($398.7 million), up from N389.11 billion ($284 million) at the end of 2025.

Net cash generated from investing activities reached N162.63 billion ($118.7 million), supported by sukuk redemptions and interbank flows, further strengthening the bank’s liquidity position.

Assets climb as shareholders retain control

Total assets increased marginally by 1.8% to N1.31 trillion ($955.84 million), up from N1.29 trillion ($939.5 million) at the end of 2025. Financing assets rose to N271.46 billion ($198.1 million), while inventory financing reached N80.2 billion ($58.5 million). Retained earnings reached N28.8 billion ($21.01 million).

The bank remains closely held, with major shareholders controlling more than 80% of equity. Muhammadu Indimi retained the largest stake at 29.36%, alongside Dangote Industries Limited, Islamic Development Bank, Althani Investment Limited, and Aminu Dantata.

Why it matters

Jaiz Bank’s performance highlights the accelerating growth of Islamic finance in Nigeria, where demand for Sharia-compliant products continues to expand across retail, corporate, and government segments.

The bank’s growing sukuk exposure aligns with broader infrastructure financing trends across Africa, positioning it to deepen financial inclusion and compete more aggressively with conventional lenders.