Jaiz Bank Shrinks by 15% Ahead of Board Emergency Meeting
Jaiz Bank Plc lost 15% of its market valuation on the Nigerian Exchange as shareholders sold down interest ahead of its first-quarter earnings release. Its market price slumped to N1.93 from its opening price of N2.05.
In the last seven trading sessions, Jaiz Bank Plc’s share price had peaked at N2.27.According to the Nigerian Exchange, the Islamic lender’s market valuation dropped to N66.66 billion amidst an ongoing recapitalization exercise in the banking sector.
On Sunday, the Islamic lender informed the market that its board would meet to consider the first quarter of 2024 earnings. According to the management, the non-interest bank board of directors will have an emergency meeting on Tuesday to consider Q1-2024 unaudited financial statement.
Jaiz Bank Plc said in its earnings forecast that pretax profit would print at N4.776 billion in Q1-2024 and expects a tax provision of about N478 million to reduce its bottom line. The non-interest bank projected N4.299 billion in net profit driven by improved contract financing, non-interest revenue, and investment in interest-yielding assets.
Income from financing and investment is expected to account for a significant chunk of the Islamic bank’s gross earnings in the first three months of 2024 operations. The Islamic lender stated that its gross earnings is expected to print at N17.183 billion, according to its earnings forecast for Q1. Jaiz Bank Plc estimated N16.296 billion as income from financing and investment in the period.
The non-interest bank expects to pay providers of fund N3.7 billion in Q1. This is expected to leave the Islamic lender with N12.572 billion as net revenue from funds it deployed for the operation in the first quarter of 2024.
The bank expects an impairment charge on credit to gulp about N1.9 billion, and it hopes to record N11.573 billion as its net operating income in the period. This is set against operating expenses which is expected to settle at about N6.8 billion.
