WED JULY 01 2026-theGBJournal| Jaiz Bank Plc expects to remain solidly profitable in the third quarter of 2026 despite booking credit impairment charges, underscoring the resilience of its Islamic banking operations as strong financing and investment income offsets higher provisioning costs.
The Bank’s financial forecast signed by Chief Financial Officer (CFO) Oyeni K. Bello projects profit after tax of N9.69 billion for the July-to-September period, supported by robust revenue generation, healthy operating cash flows and a stronger cash position at the end of the quarter.
The lender forecasts gross earnings of N38.92 billion, driven primarily by N36.88 billion in financing and investment income.
After paying N10.00 billion in profit to investment account holders, Jaiz Bank expects net revenue from funds to reach N26.88 billion, highlighting the continued strength of its core non-interest banking business.
The bank also anticipates N2.03 billion in other income, lifting net operating income to N28.73 billion.
Against projected operating expenses of N17.96 billion, Jaiz Bank expects to deliver a profit after tax of N9.69 billion, reflecting healthy operating margins despite cost pressures.
The earnings outlook, however, includes credit impairment charges of N186.55 million, indicating that the bank has made provisions for potential losses on financing assets.
While relatively modest compared with projected operating income, the impairment charge reflects continued prudence in risk management as lenders navigate evolving macroeconomic conditions and asset-quality risks.
On the cash flow side, Jaiz Bank forecasts N12.79 billion in cash from operating activities before working capital adjustments, with net cash generated from operating activities expected to rise sharply to N48.29 billion.
The bank projects a cash outflow of N25.63 billion from investing activities, reflecting continued investment in assets and business expansion.
Financing activities are expected to generate N36.88 billion, providing additional liquidity to support growth initiatives and balance sheet management.
Overall, the bank projects a net movement in cash and cash equivalents of N59.55 billion, resulting in cash and bank balances increasing from N481.94 billion at the beginning of the quarter to N541.49 billion by the end of September 2026.
The financial forecast provides investors with an outlook that points to sustained earnings momentum, resilient liquidity and cautious credit risk management despite the recognition of impairment charges during the quarter.
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