2020 iBAF

This study evaluated the effect of non-interest banking products on the financial performance of Jaiz bank Plc (the only full-fledged non-interest bank in Nigeria), using time series data generated from the annual reports and accounts of the bank, covering the period 2013- 2019. Descriptive statistics such as mean, median, minimum and maximum values are used in data presentation, while ordinary least squares regression is applied in the investigation of the effect of non-interest banking products (investment in Sukuk, investment in Istisna and investment in Ijara assets) on the financial performance surrogated by return on equity. Results reveal that investments in Sukuk and Ijara assets have significant positive effect on the financial performance; while investment in Istisna has significant negative effect on the financial performance. The study concludes that in the long run, investments in Sukuk and Ijara assets will enhance shareholders’ value, while investment in Istisna will attenuates shareholders’ earnings. The paper recommends that Jaiz bank Plc should consider more carefully the utility and value maximization of investment in Istisna in comparison to investments in Sukuk and Ijara assets.