Quarter Under Preview: FULL YEAR 31ST DECEMBER 2025
Current Share Price: N9.10
Price At Released Date: N9.13
Latest Final Dividend: N0.11
Latest Interim Dividend: NIL
Estimated Beta Value: 0.46x
Estimated Intrinsic Value: N7.36
Rating: Moderate Buy
Analyst: Jeariogbe Tunde Segun
The Bank
Jaiz Bank Plc was incorporated in 2003 as Jaiz International Plc with the vision of establishing the first full-fledged non-interest bank in Nigeria. After years of regulatory preparation and capital mobilization, the bank obtained a regional banking licence from the Central Bank of Nigeria in November 2011 and officially commenced operations on 6 January 2012 with branches in Abuja, Kaduna, and Kano. The bank later secured a national banking licence in 2016, enabling it to expand its operations across Nigeria.
As the pioneer Islamic bank in the country, Jaiz Bank introduced banking services based on Sharia-compliant principles, focusing on ethical and interest-free financial transactions.
Jaiz Bank operates primarily in the non-interest banking segment of the Nigerian financial industry. Its business lines include retail banking, corporate banking, SME financing, agricultural finance, trade finance, investment banking, and public sector financing.
The bank offers products such as Mudarabah savings accounts, Qard current accounts, Murabaha financing, Ijara lease financing, project financing, import and export finance, and other Islamic financial solutions tailored to individuals and businesses. The bank also provides digital banking services including mobile banking, ATM services, POS services, and online banking platforms.
Over the years, Jaiz Bank has expanded its operations nationwide, supporting sectors such as agriculture, construction, commerce, oil and gas, and real estate while promoting financial inclusion in Nigeria.
In terms of capitalization and financial growth, Jaiz Bank has experienced remarkable expansion since inception. From a balance sheet size of about ₦12 billion in 2012, the bank’s total assets grew significantly to over ₦1 trillion by 2024, reflecting strong growth in deposits, financing assets, and shareholder funds. The bank is listed on the Nigerian Exchange under the ticker “JAIZBANK” and has consistently raised additional capital through private placements and equity investments to support its national expansion strategy. Major shareholders include prominent Nigerian investors and institutions such as Muhammadu Indimi, Dantata Investment & Securities, Islamic Development Bank, and Dangote Industries Limited. Today, Jaiz Bank remains one of the fastest-growing non-interest banks in Nigeria and a key player in the country’s ethical banking sector.
The Released Numbers
Jaiz Bank Plc recorded a strong financial performance in 2025, as reflected in its Statement of Comprehensive Income. Gross earnings increased significantly by 24.06% from ₦82.87 billion in 2024 to ₦102.81 billion in 2025. This growth was driven mainly by improvements in income from finance contracts and investment activities, which rose by 31.26% and 27.79% respectively. Total income also advanced by 20.74% to ₦74.56 billion, indicating the bank’s expanding earning capacity and improved operational activities during the period under review.
Despite the growth in earnings, the bank maintained relatively moderate growth in operating expenses. Operating expenses (OPEX) increased marginally by 5.11% from ₦21.72 billion to ₦22.83 billion, while depreciation and amortisation rose by 25.53% to ₦2.30 billion. The lower growth rate in OPEX compared to revenue growth suggests improved cost management and operational efficiency. Consequently, Profit Before Tax (PBT) grew strongly by 27.83% from ₦24.44 billion in 2024 to ₦31.25 billion in 2025, reflecting the bank’s ability to convert higher revenues into improved profitability.
Furthermore, Profit After Tax (PAT) increased by 28.41% from ₦23.48 billion in 2024 to ₦30.16 billion in 2025, while Total Comprehensive Income also rose by the same margin. The relatively low tax expense growth of 13.50% further supported net profit expansion. Overall, the financial performance demonstrates Jaiz Bank’s sustained growth trajectory, strong earnings diversification, and improving profitability within Nigeria’s non-interest banking sector. The results indicate sound financial management and reinforce the bank’s position as one of the leading Islamic banking institutions in the country.
Jaiz Bank Plc’s Statement of Financial Position for 2025 reflects significant expansion in its balance sheet and overall financial strength. Total assets grew by 19.11% from ₦1.08 trillion in 2024 to ₦1.29 trillion in 2025, indicating strong growth in the bank’s financing and investment activities. Total liabilities also increased by 17.79% to ₦1.19 trillion, largely driven by substantial growth in customer deposits and other financing obligations. Despite the increase in liabilities, the bank maintained a healthy asset base, demonstrating improved market confidence and stronger business operations during the year.
The bank recorded notable improvements in shareholders’ value and capital position. Net assets rose significantly by 37.83% from ₦71.47 billion to ₦98.50 billion, while retained earnings surged by 83.56% to ₦28.80 billion, reflecting stronger profit retention and enhanced internal capital generation. Property, plant, and equipment also increased by 37.24%, suggesting continued investment in operational infrastructure and branch expansion.
Meanwhile, customer deposits increased remarkably by 46.69% to ₦724.05 billion, highlighting the growing customer trust as shown by the expansion in the bank’s deposit base across Nigeria.
Furthermore, Jaiz Bank experienced a sharp rise in other financing obligations, which increased by over 1,259%, indicating aggressive funding activities to support business growth and financing operations. However, cash and cash equivalents declined by 10.15%, possibly due to increased deployment of funds into earning assets and financing facilities. Other liabilities decreased by 36.36%, which may indicate improved liability management and settlement of short-term obligations. Overall, the financial position demonstrates that Jaiz Bank remains financially stable, well-capitalized, and strategically positioned for continued growth within Nigeria’s non-interest banking sector.
Financial Strength/Solvency Ratio
Jaiz Bank Plc’s financial strength and solvency ratios for 2025 indicate a modest improvement in its capital structure and financial stability. The Debt Ratio declined slightly from 93.39% in 2024 to 92.35% in 2025, suggesting a marginal reduction in the proportion of assets financed through liabilities. Similarly, the Total Debt-to-Equity Ratio improved from 1412.26% to 1206.93%, reflecting a lower dependence on debt financing relative to shareholders’ equity. Although the bank remains highly leveraged, the decline in these ratios indicates improving balance sheet management and stronger equity support for operations.
Furthermore, the Equity Ratio increased from 6.61% in 2024 to 7.65% in 2025, representing a 15.71% improvement and indicating stronger shareholders’ funds relative to total assets. This growth aligns with the bank’s rising retained earnings and expanding net assets during the year. The Beta Value of 0.46 suggests that Jaiz Bank’s stock is relatively less volatile compared to the broader market, making it potentially attractive to conservative investors seeking lower market risk exposure. Overall, the solvency ratios reflect gradual strengthening in the bank’s financial position despite its liability-heavy banking structure.
Profitability Ratios
Jaiz Bank Plc’s profit ratios for 2025 indicate continued improvement in operational performance and earnings generation. The EBITDA Margin increased from 29.50% in 2024 to 30.39% in 2025, reflecting stronger operational efficiency and improved cost management. Similarly, the Pre-Tax Margin also rose to 30.39%, showing that the bank was able to retain a higher proportion of its earnings before tax expenses. These improvements were supported by significant growth in gross earnings, finance income, and investment income during the financial year.
However, Return on Equity (ROE) declined slightly from 32.86% in 2024 to 30.62% in 2025, indicating that although profits increased, shareholders’ equity grew at a faster pace than net earnings. On the other hand, Return on Assets (ROA) improved from 2.17% to 2.34%, suggesting better utilization of the bank’s asset base in generating profits. Overall, the profitability ratios reflect a financially healthy institution with strong earnings capacity, improving operational efficiency, and sustained profitability within Nigeria’s non-interest banking sector.
Efficiency Ratios
Jaiz Bank Plc’s efficiency ratios for 2025 reflect notable improvement in operational management and resource utilization. The OPEX to Turnover ratio declined significantly from 26.20% in 2024 to 22.20% in 2025, representing a 15.28% reduction. This indicates that the bank managed its operating expenses more efficiently relative to its revenue generation during the year. The improvement suggests stronger cost control measures and enhanced operational productivity, which contributed positively to the bank’s overall profitability performance.
Furthermore, the Total Turnover to Total Assets ratio increased slightly from 7.67% to 7.99%, indicating improved asset utilization in generating revenue. Capital expenditure per share remained relatively stable at 0.22, showing consistency in investment spending relative to shareholders’ units. In addition, Financial Leverage declined from 14.12 times to 12.07 times, reflecting reduced reliance on debt financing and gradual strengthening of the bank’s equity position. Overall, the efficiency ratios demonstrate that Jaiz Bank improved its operational efficiency, asset productivity, and financial structure during the 2025 financial year.
Investment/Valuation Ratios
Investment and valuation ratios for 2025 reflect the strong market appreciation and improving shareholder value. The share price increased significantly from ₦4.50 in 2024 to ₦9.13 in 2025, representing a remarkable growth of 102.89%, which indicates increased investor confidence in the bank’s performance and future prospects. Earnings Per Share (EPS) also rose by 28.41% from ₦0.53 to ₦0.68, reflecting stronger profitability attributable to shareholders. Similarly, Total Comprehensive Income Per Share (TCIP/Share) improved by the same margin, further reinforcing the bank’s enhanced earnings capacity and shareholder returns during the financial year.
In addition, the Price-to-Earnings (P/E) Ratio increased from 8.54x to 13.50x, suggesting that investors are willing to pay more for the bank’s earnings due to positive market expectations. However, Earnings Yield declined from 11.70% to 7.41%, largely as a result of the sharp increase in market price relative to earnings growth. Book Value per Share rose significantly by 37.83% to ₦2.21, indicating stronger net asset backing for shareholders, while the Price-to-Book Value (PBV) ratio increased to 4.13x from 2.81x. Overall, the valuation ratios suggest that Jaiz Bank experienced substantial market re-rating in 2025, supported by improved profitability, stronger equity growth, and rising investor confidence.
Dividend Information
Jaiz Bank’s dividend information for 2025 reflects a balanced approach between rewarding shareholders and retaining earnings for future expansion. The bank declared a dividend of ₦0.11 per share, resulting in a dividend yield of 1.20%, which provides shareholders with moderate returns relative to the market price of the stock. The payout ratio of 16.26% indicates that only a small portion of earnings was distributed as dividends, while a larger percentage is retained to support business growth and expansion. This is further supported by the sustainable growth rate of 25.45%, suggesting that the bank possesses strong internal capacity to finance future growth without excessive reliance on external funding.
Final Verdict/Investment Recommendations/Ratings
Jaiz Bank Plc delivered an impressive financial performance in 2025, supported by strong growth across earnings, profitability, asset expansion, and shareholder value. The bank recorded substantial increases in gross earnings, total income, profit before tax, and profit after tax, while maintaining relatively controlled operating expenses. Its balance sheet also strengthened significantly, with growth in total assets, customer deposits, retained earnings, and net assets, reflecting expanding operations and improved market confidence. Profitability ratios remained strong, operational efficiency improved, and valuation indicators showed that investors increasingly re-rated the stock positively during the year.
From a financial strength perspective, Jaiz Bank remains relatively highly leveraged, which is common within the banking industry, but the gradual reduction in debt-related ratios and improvement in equity position suggest improving solvency and balance sheet stability. The bank’s strong deposit growth, improving asset utilization, and expanding retained earnings further support its long-term sustainability. In addition, the modest dividend payout policy indicates that management is prioritizing reinvestment and future expansion, which aligns with the bank’s strong sustainable growth rate of 25.45%.
Overall, Jaiz Bank appears fundamentally strong with positive growth momentum, improving profitability, rising investor confidence, and expanding market presence within Nigeria’s non-interest banking sector. Based on the analysed financial statements and ratios, the stock can be considered attractive for medium- to long-term investors seeking growth opportunities. Therefore, the investment recommendation is BUY for long-term capital appreciation, while existing shareholders may confidently HOLD in anticipation of continued earnings growth and future dividend improvement. The overall investment rating for Jaiz Bank Plc is BUY / OUTPERFORM.
