Access, Zenith Banks, Seven Others Rake in N554 Billion From Account Maintenance, E-Transactions

Access, Zenith Banks, Seven Others Rake in N554 Billion From Account Maintenance, E-Transactions

  • Account maintenance charges, commissions from cards and other fees form the bulk of the money raked in by nine banks in Nigeria
  • The banks were led by Access Bank followed by Zenith Bank to post N554 billion cumulatively in charges and commission for the year ended 2021
  • The Central bank of Nigeria introduced a new regime on January 1, 2021 for bank charges affecting mostly card charges

Nine banks in Nigeria have raked in a whooping N554bn from fees and commissions in 2021.

The amount represents a 29 per cent increase from N428.32 billion made by the banks in 2020.

Access bank leads Zenith, Guaranty Trust Bank, UBAM FCMB, Stanbic IBTC, Wema, Sterling and Fidelity banks in the report, according to The Punch.

Access, Zenith Banks, Account Maintenance, E-Transactions
Nigerian banks raking billions from charges and commissions
Source: Getty Images

How the banks make their money

The money was arrived at by aggregating the net fees and commissions of the banks’ income contained in their annual financial statements that ended December 31, 2021.

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Commissions and fees are important part of non-interest revenue for banks in the country and represent revenue from account maintenance fees, electronic banking fees, and other related charges.

They are net fees and commissions generated by the banks after expenses incurred from providing the services are deducted.

Their financial earnings in 2021

Access Bank made a total of N118.56 billion against N93.57 billion it made during the same period in 2020.

The most valuable in Nigeria made N7.23 billion from electronic bank charges and N33.35 billion from e-banking services.

Zenith Bank raked in N103.95 billion from fees and commissions which resulted in an income of N132.88 billion and expenses of N28.96 billion.

According to the bank, total fees and commissions revenue realised at a point in time amount to N91.291 million and N71.092 million.

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The bank said fees from bank products it made are N37.47 billion as the sum of N31.39 billion was made from account keeping.

From fees on electronic products, the bank raked in N37.47bn while the sum of N31.39bn was generated from account maintenance charges.

UBA made N110.9 billion which is N25.9 billion higher than the N85 billion made in the nine-month period of 2020. The bank made N7.1 billion from account maintenance charges and N41.9 billion from electronic business.

A report from GTB stated that the bank made N65.65 billion from fees and commissions in 2021, a jump of N18.72 billion from income made in 2020.

A financial statement from the bank says N65.65 billion was generated from fees and commissions last year an increase of N18.72 billion from income made in 2020.

Others are:

FCMB - N28.75 billion

Wema Bank - N13.42 billion

Stanbic IBTC - N5.08 billion

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Fidelity Bank - N13.76 billion

What the CBN says about bank charges and commissions

At the beginning of 2020, the Central Bank of Nigeria introduced a new regime for bank charges affecting mostly card maintenance charges, fees for tokens and electronic transfer charges.

Zenith, Gtbank lead list of Nigeria's most valuable banks in January

Legit.ng has reported that Zenith Bank is starting 2022 as the most valuable commercial banks in Nigeria as the total value of Nigerian bank closed at N194.5 billion.

In second most valuable bank is Guaranty Trust Bank followed by Stanbic IBTC Holdings to complete the top three most valuable banks.

The ranking of the banks is according to data from Nigerian Exchange Group (NGX) and collected by Nairametrics.

Source: Legit.ng

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