Jaiz Bank Displays ‘Confidence’ with Numbers in Fresh Projection
Islamic lender, Jaiz Bank is expecting its first quarter of 2022 profit to settle at N1.348 billion, according to its latest regulatory filing with the Nigerian Exchange.
This translate to a 62% growth expectation when compared with profit for the comparable period in the first quarter of 2021…80% above the comparable period forecast.
The bank which recently sees a lower credit rating of b negative from Fitch had projected a profit of N747.367 million for Q1-2021 but delivered N832.297 million.
Detail from the bank forecast document shows that the estimated profit is expected to be driven by net revenues from funds, an income line item that accounts for a significant chunk of the bank’s earnings.
Jaiz Bank is looking forward to N8.44 billion gross earnings, more than 37% of what the Islamic lender projected in the comparable period in 2021. Actual gross income from financing transactions however settled at N5.518 billion.
Recently, the bank shore up its weak capital position with private placement with one of its core shareholders that placed an additional N3.3 billion to close the funding gap.
In the next three months projection, Jaiz Bank is expecting its net revenue from funds to print at N6.653 billion – about 40% above the sum projected for the first quarter of 2021.
For the first quarter operating activities, Jaiz Bank is expecting asset quality to deteriorate as the management set impairment charges on credit losses at N1.438 billion. This is more than 90% of its estimated sum of N750 million in the first quarter of 2021.
Though, the actual result for the period shows that Jaiz Bank Plc outpaced its impairment charge expectation by about 6.5% in the first quarter of 2021 when it booked N798.333 million.
A loan obtained by Fursa Foods Limited, a related party to one of its significant shareholders was placed on a watch list in the third quarter, according to its financial statement.
The management is projecting to see net operation income of N5.648 billion next three months, on confidence other income would support the bank performance.
Other income, a total of fees and commission income and other operating income – is expected to print at N433.372 million, compared with N358.881 projected last year which hits N472.042 million in Q1-2021.
Heavy operating expenses remain the fat elephant in the building for the Islamic lender. Jaiz projected operating expenses of N4.150 billion for the period, 17.44% above the estimated amount in Q1-2021.
According to the bank’s financial statement for the first quarter in 2021, operating expenses actually printed at N3.257 billion, below N3.534 billion projected.
For the next three months, Jaiz Bank forecast profit to settle at N1.348 billion, 80% above the Q1-2021 projection and 62% higher than the actual result delivered in Q1-2021.
Jaiz Bank key shareholders include Dr. Umaru Abdul Mutallab, Dantata Investment & Securities Limited, Dr. Muhammadu Indimi -the Islamic lender single largest shareholder as of the third quarter, Islamic Development Bank.
Others are Dangote Industries Limited, Althani Investment Limited and Dr. Aminu Alhassan Dantata.
The bank’s core shareholders holding more than 5% interest have cumulative interest nears 70% in the Islamic lender 34.541 billion shares outstanding.
On Monday, Jaiz Bank shares were traded at 66 kobo with a total market capitalisation of N22.1 billion. #Jaiz Bank Displays ‘Confidence’ with Numbers in Fresh Projection
Read Also: Jaiz Bank Credit Quality Falls over High Concentration, Financing
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