Jaiz Bank reported a 68.5 percent increase in net profit for 2022 as revenue surpasses N33 billion in its audited financial report on Friday.
According to Premium Times, an increase in its main income streams significantly aided the operation of the non-interest bank with headquarters in Abuja.
The bank reported an increase in revenue of almost 30%, with gross earnings rising to N33.4 billion. The bank is on track to adopt a holding company form.
Of that total, N21.6 billion came from financing contracts, while N9.9 billion came from investment activities. The remaining sum was made up of fees and commissions and other operating profits.
In contrast to the N4.9 billion paid the previous year, Jaiz Bank rewarded equity investment account holders N6.9 billion as a return.
Its largest shareholders include Dantata Investment & Securities Limited, Altani Investment Limited, Islamic Development Bank, Dangote Industries Limited, Mohammed Indimi (founder and chairman of Oriental Energy Resources), Umaru Mutallab (its former chairman and a former chairman of FirstBank Plc), and Dantata Investment & Securities Limited.
The annual report states that the six collectively own 67.9% of the bank’s shares.
Following a dramatic decline in the bank’s wakala income, which comes from deposits made by corporations and high-net-worth people and invested in a particular project in which both parties were involved, other income for the year dropped by 39% to N340.1 million.
The bank reduced its unrealized foreign exchange loss from N214.7 million to N143 million during the course of the year.
Operational expenses increased by 37.9% to N6.6 billion, with directors’ expenses seeing the biggest spike.
The firm spent N1.1 billion, which is more than three times what it did in 2021, on expenses such director training, director fees, sitting allowances, and the accrued severance compensation of the company’s most recent CEO.
Profit before taxes increased by 59.5% to N6.6 billion, while profit after taxes increased by N6.9 billion to N6.9 billion from N4.1 billion.
