Jaiz Bank Plc, Nigeria’s pioneer non-interest lender, posted a sharp rise in profit in 2025, buoyed by strong growth in investment income, a surge in customer deposits and an expanding sukuk portfolio that helped lift its balance sheet to a record high.
Profit after tax rose to N31.0 billion in the year ended December 2025, from N23.5 billion a year earlier, according to the bank’s unaudited financial statements.
Gross income climbed to N97.9 billion, driven largely by higher returns from financing contracts and investment activities, as Nigeria’s elevated interest-rate environment boosted yields across fixed-income markets.
Total assets jumped 19 percent to N1.29 trillion, underscoring Jaiz Bank’s rapid balance-sheet expansion as it deepens its footprint in Africa’s most populous economy. A key driver was investment in sukuk, which rose to N489.5 billion from N349.6 billion a year earlier, reflecting the lender’s growing exposure to sovereign and corporate Islamic debt instruments.
Customer deposits climbed sharply to N724.1 billion, up from N493.6 billion in 2024, highlighting rising confidence in the bank amid tighter liquidity conditions across Nigeria’s financial system.
The surge in low-cost current deposits helped support earnings even as operating expenses rose alongside the bank’s expanding branch network and workforce.
Jaiz Bank’s financing assets — the Islamic equivalent of loans — increased to N245.7 billion, from N215.3 billion, reflecting cautious asset growth in a year when many Nigerian lenders tightened credit due to currency volatility and concerns about asset quality.
The Abuja-based lender also benefited from relatively stable impairment charges. Net impairment stood at N452 million, a modest figure compared with peers, helping to preserve profitability despite a challenging operating environment marked by high inflation, foreign-exchange pressures and regulatory tightening.
Read also: Jaiz Bank sees profit surge in Q1 on strong financing income
Earnings per share rose to 66.38 kobo, from 69.62 kobo in the comparable prior period, reflecting the impact of profit-sharing with investment account holders under Islamic banking rules as well as a larger equity base.
Jaiz Bank operates under a non-interest banking model, sharing profits with depositors rather than paying conventional interest. In 2025, returns paid to unrestricted investment account holders rose to N26.9 billion, up from N21.3 billion, underscoring the scale of growth in customer funds managed by the bank.
Despite the earnings growth, shareholders’ equity slipped slightly to N68.3 billion from N71.5 billion, reflecting regulatory transfers to statutory and risk reserves as required by Nigerian banking rules. The bank continues to retain a significant portion of earnings to support future growth and meet capital buffers.
Cash flows from operating activities remained positive at N162.7 billion, though lower than the prior year, as increased financing activity and working-capital movements absorbed liquidity. The bank invested heavily during the year, with net cash used in investing activities of N151.6 billion, largely tied to additional sukuk purchases.
Founded in 2012, Jaiz Bank is Nigeria’s first fully fledged Islamic bank and has steadily expanded its presence as demand for Shariah-compliant financial products grows among individuals, corporates and government issuers. The lender now operates across multiple states and continues to position sukuk and ethical financing as a hedge against volatility in traditional lending.
With Nigeria’s central bank maintaining tight monetary policy to curb inflation, analysts say Islamic lenders such as Jaiz Bank are increasingly benefiting from higher yields on risk-free instruments, even as credit growth remains selective.
