Jaiz Bank stock takes lead on the NGX

By Philippine Duru

philippineobetoduru@gmail

Jaiz Bank Plc has emerged as one of the standout performers on the Nigerian stock market this year, delivering returns that significantly outpaced both the broader market and the banking sector.

Data from the Nigerian Exchange (NGX) shows that the non-interest bank recorded a year-to-date gain of 106.6 percent in the first four months of the year. This is nearly double the 55.69 percent return posted by the All-Share Index (ASI) and well above the 50.50 percent average gain recorded by the banking sector.

The bank’s share price rose sharply from N4.55 at the start of the year to N9.40, reflecting strong investor confidence in its growth outlook. Its performance also surpassed other major market indices, including the NGX Premium Index (76.64 percent), NGX Pension Index (69.02 percent), and NGX 30 Index (55.55 percent).

Even within the Islamic finance space, Jaiz Bank led the pack. The NGX Lotus Islamic Index recorded a return of 94.07 percent—about 13 percentage points lower than Jaiz Bank’s gain—making the lender the top-performing Sharia-compliant stock during the period.

A broader review of banking stocks highlights Jaiz Bank as the best-performing player in a sector that has recently slowed following recapitalisation activities. While Sterling Financial Holdings gained 8.5 percent and Fidelity Bank rose by 5.3 percent, Wema Bank posted a 67.2 percent increase, and FCMB Group declined by 7.5 percent.

The bank’s strong market performance reflects a longer-term trend of value creation. Over the past two and a half years, Jaiz Bank has delivered cumulative capital gains of 384.54 percent. Investors who entered the stock in 2021 have seen returns of over 1,324 percent, averaging about 20.69 percent monthly over 64 months.

Market analysts attribute this growth to sustained investor interest and the bank’s unique positioning as Nigeria’s only listed full non-interest bank. This distinction has also contributed to the NGX establishing a dedicated non-interest finance board, where Jaiz Bank remains the pioneer listing.

Financial results further support the bullish sentiment. In its unaudited 2025 results, gross earnings rose to N102.08 billion from N82.87 billion in 2024, while net income increased to N74.76 billion from N61.76 billion. Profit before tax climbed to N31.39 billion, and net profit reached N31.04 billion, up from N23.48 billion the previous year.

Earnings per share improved to 69.62 kobo, while total assets expanded to N1.287 trillion from N1.081 trillion. Shareholders’ funds stood at N68.34 billion before profit capitalisation, with share capital at N22.29 billion—above the regulatory minimum for non-interest banks.

Analysts expect the bank’s audited results, currently under review by the Central Bank of Nigeria, to align closely with these figures.

Experts say Jaiz Bank’s growth is being driven by shifting market dynamics. According to Kehinde Hassan, Managing Director of GTI Capital Limited, investors are increasingly drawn to non-interest banking models that rely less on traditional interest income and more on fees, partnerships, and asset-backed financing.

He noted that economic pressures such as inflation, foreign exchange volatility, and tighter regulations are pushing investors toward alternative banking models. At the same time, small and medium-sized enterprises (SMEs) are turning to profit-sharing and trade finance structures, areas where non-interest banks like Jaiz have a competitive advantage.

With its niche positioning and strong fundamentals, analysts believe Jaiz Bank is well placed to sustain its growth momentum in the near term.