Jaiz Bank Plc expects a sharp rise in profitability in the first quarter of 2026, driven by robust financing and investment income, contained credit losses and strong cash generation, according to its earnings forecast submitted to the Nigerian Exchange Group.
The Abuja-based non-interest lender projects gross earnings of N30.72 billion for the three months to March 2026, with financing and investment income accounting for nearly all of that figure at N29.39 billion.
The outlook underscores the bank’s growing ability to scale its Shariah-compliant financing portfolio amid elevated interest rates and a tight liquidity environment that has strained conventional lenders.
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After paying N8.67 billion in profit to investment account holders, Jaiz Bank expects net revenue from funds of N20.72 billion, reflecting the expanding contribution of profit-sharing investment accounts to its balance sheet. The bank’s forecast suggests it has so far been able to protect margins despite rising funding costs across Nigeria’s banking system.
Credit risk remains muted in the outlook. Jaiz Bank estimates credit impairment charges of just N186.6 million, a relatively modest figure that points to improved asset quality and cautious underwriting in a period marked by foreign exchange volatility and weak consumer purchasing power.
Other income is projected at N1.32 billion, lifting net operating income to N21.86 billion. Operating expenses, however, are expected to consume a significant portion of earnings at N14.62 billion, highlighting the persistent cost pressures facing Nigerian banks, including higher personnel expenses, energy costs and regulatory compliance outlays.
Even so, the bank forecasts profit before tax of N7.24 billion, with profit after tax expected to settle at N6.51 billion after accounting for N723.9 million in tax. If achieved, the performance would reinforce Jaiz Bank’s position as one of the fastest-growing non-interest lenders in the country.
The cash flow outlook is equally striking. Jaiz Bank projects N68.94 billion in net cash generated from operating activities, reflecting strong core banking inflows and improved working capital management.
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Operating cash flow before working capital changes is estimated at N8.37 billion, while investing activities are expected to absorb N18.95 billion, likely tied to expansion of financing assets and technology investments.
Despite a projected net decrease of N49.99 billion in net cash and cash equivalents, the bank’s cash position remains robust. Cash and bank balances are forecast to rise to N521.53 billion by the end of March 2026, up from N471.54 billion at the beginning of the period, underscoring balance-sheet resilience.
For investors, the forecast paints a picture of a lender benefiting from Nigeria’s shift toward ethical and non-interest banking, while maintaining liquidity buffers at a time when regulatory scrutiny and macroeconomic risks remain elevated.
The extent to which Jaiz Bank can convert this earnings momentum into sustained shareholder returns will depend on cost discipline and its ability to navigate a still-volatile operating environment.