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Nigeria’s tier-1 banks collect N16.9 trn deposits from customers in Q1

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Nigeria’s big banks received a combined N16.9 trillion from customers through deposits across various account types in the quarter one of 2019, which is 12.5 percent above N15.1 trillion collected in the previous comparable period.

Analysis of total deposits received from customers based on account type for the tier-one lenders revealed that 44 percent, equivalent to N7.54 trillion, were paid into current account.

According to Yinka Ademuwagu, research analyst at Lagos-based investment advisory firm, United Capital Plc, this points to the fact that banks are leveraging financial technology (Fintech) to grow their customer deposits.

“Most banks are seen to be exploiting Fintech such as Chatbot, USSD and Internet Banking to penetrate into the economy and bank the unbanked”, Ademuwagu claimed, adding that overall, it connotes betterment in economic activities.

Customers deposited N4.05 trillion in term account; N3.82 trillion in savings account, N1.53 trillion in domiciliary account and N11.08 billion in electronic purse account, on the aggregate, in Access Bank, Zenith Bank, United Bank for Africa, Guaranty Trust Bank and First Bank.

The five account types recorded an uptick year-on-year in the review period. Customers’ deposits to term account were N392.79 billion higher than N3.66 trillion reported in the first quarter of 2018.

Current and savings account increased by N518.76 billion and N696.85 billion respectively in the quarter review, from N7.02 trillion and N3.12 trillion, while deposits paid to domiciliary account up 22.19 percent from N1.25 trillion, and that of electronic purse account dipped by N25 million.

The five banks registered positive growth in customer deposits, with Access Bank leading the pack with 53.37 percent increase to N3.91 trillion, partly attributable to the fact that the lender merged with the defunct Diamond Bank to leverage the former’s expansive retail customer base.

Nigeria’s biggest lender by market capitalization, Guaranty Trust Bank, grew customer deposits at a single-digit rate of 6 percent from N2.27 trillion in the previous comparable period to N2.24 trillion in the first three months of 2019.

United Bank for Africa’s customer deposits increased to N3.53 trillion in the review period, indicating 5.43 percent rise over N3.35 trillion reported in the previous period. Zenith Bank, biggest lender by assets, up customer deposits by 5.16 percent to N3.57 trillion, and First Bank reported the least growth of 0.82 percent to N3.52 trillion.

Analysing the figures for individual banks based on account types showed that Access Bank recorded positive growth all-around. Customer deposits paid to term account grew by N401.86 billion, current account (N415.76bn) and savings deposit (N546.39bn).

For Guaranty Trust Bank, sum paid by customers to term accounts increased by N33.5 billion; current account (N82.52bn) and savings account (N20.47 bn), while in UBA, customers deposits into term accounts dipped N34.87 billion, current account dipped N191.21 billion and savings rose by N25.44 billion.

Nigeria’s largest lender by assets, Zenith Bank reported elevation in customers’ deposits into term account (N34.87bn), savings (N112.68bn) and domiciliary account (N82.11bn), and decline in current account (N135.69bn). On the other hand, First Bank recorded an increase of N95.54 billion in deposits into domiciliary account, and drop in deposit in term account (N23.78bn), current account (N35.04 billion) and savings (N8.12 billion).

 

ISRAEL ODUBOLA

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