• Wednesday, February 21, 2024
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These banks spent most on staff in nine months

Access, FBN Holdings spend most on staff in nine months

Access Holdings and FBN Holdings recorded the highest salary costs for their employees compared to other deposit money banks in the first nine months of 2023, a BusinessDay analysis shows.

According to the latest financial statements of 11 banks listed on the Nigerian Exchange Limited, Access Holdings’ personnel expenses rose to N117.6 billion in the nine months from N89.8 billion in the same period of 2022 and the personnel cost of FBN increased to N113.2 billion from N84.9 billion.

Personnel expenses encompass all of a company’s expenditures in relation to staff remuneration and welfare within a specific financial reporting period. Such expenses may include salaries/wages, other benefits like health insurance costs, pensions, and training.

Further analysis of the financial statements show that the United Bank of Africa (UBA) was the third highest with N111.1 billion, followed by Zenith, Stanbic IBTC Holdings, Guaranty Trust Holding Company (GTCO) and FCMB Group with N88.4 billion, N45.9 billion, N37.6 billion and N34.0 billion respectively.

Others are Fidelity (N30.3 billion), Wema (N19.0 billion), Sterling Financial Holdings (N16.3 billion) and Unity (N10.3 billion).

The banks’ total personnel expenses rose by 33 percent in one year. Zenith Bank and UBA recorded the highest year-on-year growth of 43.9 percent and 37.6 percent.

Some banks took it upon themselves to increase personnel costs so that their human resources would not be affected by the cost of living crisis, said Israel Odubola, a Lagos-based research economist.

“And since they recorded bigger profits in the second quarter, it is expected that they will make their employees happy at this difficult time.”

The Federal Government reforms, such as the removal of petrol subsidy and naira devaluation, implemented in the second quarter of last year, increased the cost of living of cash-strapped consumers.

According to the National Bureau of Statistics, the country’s inflation rate, a measure of the general price level, rose to an 18-year high of 28.20 percent in November from 27.33 percent in the previous month.

With higher transportation fares, many employees are forced to allocate a substantial portion of their salaries to cover commuting expenses, leaving little for other essential needs like food and rent.

This move made some banks re-evaluate their employee benefits by increasing salaries and wages. Some of the banks were Wema, Zenith, GTCO, UBA and Union Bank.

In June, GTCO announced an increase in salaries for its junior and contract staff to help them cope with the increasing cost of living. The following month, Zenith announced the implementation of a company-wide salary increment for its entire staff.

That same month, UBA said its board of directors had immediately implemented a cost of living adjustment for its staff.

The bank had previously implemented a cost of living adjustment for staff on October 1, 2021 and on April 1 as a result of the persistent economic challenges.

“We are aware of the impact of recent economic policy pronouncements on prices and your capacity to meet your financial commitments to family and personal needs,” Oliver Alawuba, chief executive officer at UBA, said.

“As an organisation focused on the well-being of our people, I am pleased to inform you that the Board of UBA Plc has approved a Welfare Allowance for all employees,” he added.

Apart from GTCO and Zenith, Fidelity also commissioned more staff buses to ease the burden of commuting for employees.

Bank analysis

Zenith Bank

Zenith Bank’s personnel expenses rose by 43.9 percent to N88.4 billion from N61.5 billion.

Gross earnings rose to N1.33 trillion from N620.6 million. Profit after tax grew to N434.17 billion from N174.33 billion.


The bank’s personal expenses increased by 37.6 percent to N111.11 billion from N80.77 billion.

Net interest income grew to N443.08 billion from N282.51 billion. Profit for the period was N449.3 billion, up from N116.04 billion.

Fidelity Bank

Fidelity Bank’s personnel expenses increased by 36.8 percent to N30.31 billion from N22.15 billion.

Gross earnings surged to N388.79 billion from N241.89 billion. Profit for the period rose to N91.75 billion from N34.96 billion.

FCMB Group

FCMB Group’s personnel expenses increased by 36 percent to N34.01 billion from N25.01 billion.

Net interest income grew to N120.47 billion from N93.06 billion. Profit for the period surged to N49.15 billion from N22.92 billion

FBN Holdings

FBN Holdings’ personnel expenses grew by 33.3 percent to N113.19 billion from N84.91 billion.

Net interest income grew to N377.7 billion from N249.53 billion. Profit for the period stood at N236.42 billion, up from N91.2 billion

Sterling Financial Holdings Company

Sterling Financial Holdings Company’s personnel expenses increased by 33 percent to N16.29 billion from N12.25 billion.

Net interest income grew to N68.5 billion from N54.55 billion. Profit for the period grew to N16.49 billion from N13.4 billion

Access Holdings

Access Holdings’ personnel expenses increased by 30.9 percent to N117.63 billion from N89.84 billion.

Net interest income surged to N389.96 billion from N280.29 billion. Profit for the period rose to N250.44 billion from N136.91 billion.

Wema Bank

Wema Bank’s personnel expenses increased by 24.3 percent to N19.04 billion from N15.32 billion.

Net interest income grew to N55.74 billion from N38.47 billion. Profit for the year surged to N19.24 billion from N8.18 billion.

Stanbic IBTC Holdings

Stanbic IBTC Holdings’ staff costs increased by 23.4 percent to N45.99 billion from N37.27 billion.

Net interest income grew to N120.5 billion from N79.66 billion. Profit for the period increased to N109.25 billion from N55.19 billion.


GTCO’s personnel expenses rose by 23.1 percent to N37.58 billion from N30.54 billion.

Net interest income grew to N297.54 billion from N189.69 billion. Profit for the period rose to N367.42 billion from N130.35 billion.

Unity Bank

Unity Bank’s personnel expenses grew by 22.2 percent to N10.34 billion from N8.46 billion.

Net interest income dropped to N9.47 billion from N14.53 billion. The bank recorded a loss after tax of N47.92 trillion from a profit after tax of N2.03 trillion.