Demand for ethical investments rises as Jaiz Bank’s shareholders earn 107% gain
Investors are scrambling to increase their stakes in non-interest equities as Nigeria’s premier and largest non-interest financial institution, Jaiz Bank Plc, sustained a strong growth trajectory. Jaiz Bank’s share pricing
Investors are scrambling to increase their stakes in non-interest equities as Nigeria’s premier and largest non-interest financial institution, Jaiz Bank Plc, sustained a strong growth trajectory.
Jaiz Bank’s share pricing trend outperformed average market performance while the benchmark for quoted shares that complied with Islamic finance principles delivered higher gain that all other indices, with the exception of oil and gas and industrial goods indices.
Year-to-date analysis at the Nigerian Exchange (NGX) yesterday showed that investors in Jaiz Bank Plc saw the total value of their portfolios rising by 106.6 per cent within the first four months of this year, compared with average gain of 55.69 per cent recorded by the overall market benchmark and 50.50 per cent average gain recorded in the banking sector.
Market analysts said the performance of Jaiz Bank showed that the bank has earned investors’ trust, noting that it was partly due to sustained investors’ interest in the bank and its overall outlook that the NGX created a new board for non-interest finance.
Jaiz Bank, which was previously listed on the general main board of the NGX, was migrated as the pioneer, and still the only, company on the non-interest finance board.
Managing Director, HighCap Securities, Mr. David Adonri, said Jaiz Bank’s performance was a combination of the bank’s individual corporate outlook and the overall sentiment for non-interest sector.
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“Jaiz Bank is a fast growing non-interest bank. Its transfer to the non-interest sector of the market elicited heavy interest from ethical investors. That facilitated its huge capital gain in the capital market,” Adonri said.
Managing Director, Arthur Steven Asset Management, Mr. Olatunde Amolegbe, said there was significant pent up demand for non-interest instruments, as shown by the demand for Jaiz Bank’s shares.
Managing Director, GTI Capital Limited, Mr. Kehinde Hassan said Jaiz Bank’s strong run was driven by a mix of macro rotation, business model advantage and rising interest in ethical finance.
“With inflation, foreign exchange (forex) swings and tighter regulation squeezing traditional interest income, investors are shifting toward banks built on fees, partnerships and asset backed financing. That’s exactly Jaiz’s model.
“CBN’s push for diversified, non interest revenue also supports the shift. As forex revaluation gains fade for conventional banks, investors are rotating into models less tied to currency volatility.
“SMEs facing high borrowing costs are leaning more toward profit sharing and trade finance structures, a space non interest banks serve well. Jaiz remains the only listed full non interest bank in Nigeria, giving it a scarcity premium when the above highlighted sentiments turn positive,” Hassan, a Fellow of Chartered Institute of Stockbrokers (CIS) and Institute of Chartered Accountant of Nigeria (ICAN), said.
Jaiz Bank’s share price, which opened this year at N4.55 per share, closed weekend at N9.40 per share, representing net capital gain of 106.6 per cent. The All Share Index (ASI)-the value-based common index that tracks all share prices at the Exchange and serves as average benchmark for Nigerian equities market, closed the period with year-to-date return of 55.69 per cent. The NGX Banking Index- which tracks the banking sector, posted a four-month average gain of 50.50 per cent.
Jaiz Bank’s return also outperformed all other highpoints of the Nigerian bullish market and comparable banking stocks. The NGX Premium Index-an exclusive index for high-value stocks recorded average return of 76.64 per cent. The NGX Pension Index- which tracks specially screened stocks that meet criteria for investment of pension funds, rose by 69.02 per cent. The NGX 30 Index- which measures the performance of Nigeria’s 30 largest quoted companies, closed with average gain of 55.55 per cent.
Instructively, the NGX Lotus Islamic Index- which serves as price gauge for companies that are compliant with Islamic finance rules, recorded average gain of 94.07 per cent, nearly 13 percentage points below Jaiz Bank’s return, putting the bank atop as the most attractive within the broad range of compliant stocks.
A general banking sector analysis pinpointed Jaiz Bank as the best-performing stock in a sector that appeared to be taking a breather after the recapitalisation rush.
Within the same period, Sterling Financial Holdings Company (Sterling HoldCo) Plc, the holding company for non-interest banker, The Alternative Bank, recorded average gain of 8.5 per cent. Fidelity Bank rose by 5.3 per cent. Wema Bank recorded average gain of 67.2 per cent while FCMB Group dropped by 7.5 per cent.
The performance of Jaiz Bank so far this year underlined a track record of strong value accretion for investors in the bank, with net capital gains in nearly two and half years of 384.54 per cent. For investors that started with Jaiz Bank in 2021, net capital gains currently stand at a whopping 1,324.24 per cent, averaging net gain of 20.69 per cent per month for the past 64 months.
Key extracts of the unaudited report and accounts of Jaiz Bank for the year ended December 31, 2025 submitted at the NGX had shown significant growths in incomes and profitability. Gross earnings rose from N82.87 billion in 2024 to N102.08 billion in 2025. Total net income or operating income increased from N61.76 billion to N74.76 billion. Profit before tax rose from N24.44 billion to N31.39 billion. After taxes, net profit jumped to N31.04 billion in 2025 as against N23.48 billion recorded in 2024. Earnings per share thus improved from 66.38 kobo in 2024 to 69.62 kobo in 2025. Total assets also closed 2025 at N1.287 trillion, significantly higher than N1.081 trillion recorded in 2024. The bank’s share capital stood at N22.29 billion, higher than the new minimum capital requirement for non-interest bank, while shareholders’ funds closed at N68.34 billion, before capitalisation of the after tax profit of N31.04 billion.
Most analysts expected the bank’s audited report and accounts, which is currently undergoing regulatory approval process at the Central Bank of Nigeria (CBN), to closely reflect the interim report, in line with tradition of most quoted companies.
Analysts were optimistic that Jaiz Bank could sustain its bullish sentiment and strong fundamental performance, citing favourable operating position and emerging macroeconomic advantages.
