Zenith, UBA Lead Banks That Increased Staff Salaries in First Half of 2023

Zenith, UBA Lead Banks That Increased Staff Salaries in First Half of 2023

  • Zenith and UBA bank saw the biggest employee compensation rise in the first half of 2023
  • According to analysis, the banks witnessed 25.9% in compensation during the period
  • The salary increase was prompted by the petrol subsidy, devaluation of the naira and other economic issues in the country

Zenith Bank and United Bank for Africa (UBA) are the top Nigerian banks with the biggest employee compensation rise in the first half of 2023.

Zenith recorded the largest increase in personnel expenses, up 43.9% to N56.3 billion in the first half from N38.9 billion in the same period last year.

This is according to the first half financial statements of nine banks listed on the Nigerian Exchange Group (NGX).

According to a Tribune report, UBA came second with a rise of 32.7 percent to N69.4 billion from N52.3 billion.

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salary payment
Zenith recorded the largest increase in personnel expenses in H1 2023. Photo Credit: Zenith Bank
Source: UGC

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Each of Unity Bank and First City Monument Bank saw a 27.7% increase in business, as did Wema Bank (24.6%), Stanbic IBTC (19.4%), FBN Holdings (17.9%), Fidelity (13.8%), and Guaranty Trust Holding Company (GTCO) (12.4%).

Banks saw employee compensation and welfare increase

All company's costs associated with employee compensation and welfare during a certain financial reporting period are included in personnel expenses.

Salary/wages, and other benefits including medical insurance fees, pensions, and training may all be included in these expenditures.

The growth of 25.9% in compensation during the first half is a 12 percentage point increase above the increase of 13.9% in H1 of the previous year.

The withdrawal of the petrol subsidy and the devaluation of the naira enacted in the second quarter of the year increased the cost of living for consumers who were already stressed for cash.

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Because of rising transportation costs, many workers are compelled to set aside a sizeable amount of their pay to cover commute costs, leaving little for other necessities like food and housing.

This action forced some banks to review their employee benefits, raising salaries and pay as a result. Wema, Zenith, GTCO, Union Bank, and UBA were a few of the banks.

Legit.ng had earlier reported that Nigerian banks have adjusted their employees' salaries and wages, thus prioritising the welfare of their workforce.

Meanwhile operating expenses of about 10 banks up by 26% to N1.19 trillion in the first half of 2023 owing to Inflation and regulatory charges, among others.

According to NGX data, Zenith's Profit After Tax (PAT) increased by 161.9% to N291.7 billion in H1, UBA's PAT increased by 437.8% to N378.2 billion, GTCO's PAT increased by 261.6% to N280.5 billion, and Fidelity's PAT increased by 165.9% to N62 billion.

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"Less than N1.5m monthly": RMAFC chairman reveals Tinubu's salary

Legit.ng had reported that the monthly salary of Nigeria’s president, Bola Tinubu, is less than N1.5 million, according to the chairman of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), Alhaji Muhammed Shehu.

Shehu disclosed this in an interview with the News Agency of Nigeria (NAN) on Sunday, September 17, in Abuja, PM News reported.

The RMAFC boss that the president's ministers also earn less than a million in a month.

Source: Legit.ng

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