- Nigerian banks raked in over N74 billion from various electronic transactions in the first three months of this year
- The banks include UBA, Access Bank, Zenith Bank, Fidelity Bank, and Union.
- The banks’ earnings were possible thanks mainly to the CBN naira redesign policy earlier this year
About nine Nigerian banks have vaulted N74 billion from their electronic business earnings in the first quarter of 2023 as top banks like UBA, Access Bank, and Zenith Bank led the pack of top earners.
Commercial banks in Nigeria have resorted to earning income from digital channels such as mobile apps, USSD channels, and online banking, targeting Nigerians.
CBN allegedly supports banks' earnings via transactions
The Central Bank of Nigeria (CBN) has supported the banks’ earnings via various touchpoints like BVN, PoS, naira redesign, and other policies which drive financial inclusion.
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According to BusinessDay, nine banks recorded a combined electronic banking income of N74.22 billion in the first quarter of this year, a 15.3% increase from N64.35 billion in the first quarter of last year.
The banks surveyed in the report are UBA, Access Bank, Zenith Bank, Guaranty Trust Holding Company, FCMB, Union Bank, Wema Bank, Stanbic IBTC Holdings, and Fidelity Bank.
FBNQuest stated that the increase in the value of electronic transactions in Q1 of 2023 compared to last year could be due to CBN’s naira redesign policy and the reduction of cash in circulation.
Data from Nigeria Inter-Bank Settlement System (NIBBS) shows that electronic transactions recorded under the NIBSS Instant Payment platform spiked by 52% to N48.3 trillion in March this year.
Top Bank analysis
UBA: N20.93 billion
UBA’s maintenance fee increased to N5.35 billion
Fees and commission income: N52.19 billion
Access Holdings: N20.66 billion
Account maintenance charge: N6.58 billion
Fee and commission: N61.26 billion
Zenith Bank: N12.08 billion
Account maintenance fee: N10.19 billion
Net income on fees and commission: N34.15 billion
GTCO: N11.42 billion
Account maintenance charges: N5.46 billion
Fee and commission income: N32.43 billion
FCMB: N3.73 billion
Account maintenance: N1.84 billion,
Gross fee and commission income: N14.41 billion
Union Bank: N1.97 billion
Account maintenance fee: N669
Fees and commission income: N4.05 billion
Wema Bank: N1.52 billion
Account maintenance fees: N734.1 Billion
Fee and commission income: N4.93 billion
Stanbic IBTC Holdings: N958 million
Account transaction fees: N946 million
The holding company fee: N26.02 billion
Fidelity Bank: N955 million
Accounts maintenance charge: N1.61 billion
Fees and commission income: N7.92 billion
Top 10 banks with highest customer deposits in 2022 as customers lament loopholes in banks
Recall that Legit.ng reported that Bank customer deposits by top banks in Nigeria grew by 33.53 per cent to N49 trillion in the first nine months of 2022 from N37 trillion in the year before, data extracted from the Nigerian Exchange Group reveals.
A BusinessDay report on listed banks on Nigerian Exchance Limited shows that Access Holdings, Ecobank Transnational Incorporated, Zenith Bank, UBA, First Bank FCMB, Union Bank and Sterling Bank reported the highest value of customer deposits in the first nine months of 2022.
Top Nigerian lenders are competing to attract about N2.7 trillion outside the formal sector, leveraging the six weeks window provided by Central Bank of Nigeria (CBN) to replace old naira notes.