Fees and commission income in five tier-one commercial banks rose by 18 percent to N567.2 billion in nine months of 2022 from N480.4 billion in the corresponding period of 2021.
Findings by BusinessDay showed First Bank, UBA, GTCO, Access, and Zenith bank recorded a total fee and commission income of N567.2 billion in September 2022, an 18 percent increase from N480.4 billion in September 2021.
UBA, Zenith, and GTCO recorded an increase of 24.4 percent, 23.6 percent, and 18.2 percent while Access bank recorded 17.5 percent and First Bank records 6.7percent.
UBA recorded the sum of N138.1 billion as fee and commission income, Zenith reported N117.9 billion, GTCO (N66.9 billion), Access (N133.5 billion), and First Bank (N110.8 billion).
Here is the breakdown of tier-1 banks’ source of fee and commission income.
UBA
UBA recorded a 24.4 percent growth in fees and commission income to reach N138.1 billion in September 2022 from N111 billion in September 2021.
The source of the fee and commission income in the period are credit-related fees and commissions, commission on turnover, account maintenance fee, electronic banking income, and funds transfer fees which contributed the sum of N18.4 billion, N2.98 billion, N9.64 billion, N48 billion, and N6.59 billion respectively.
Pension funds custody fees contributed N5.44 billion, commissions on transactional services (N15.57 billion) remittance fees (N4.8 billion), and trade transactions income (N23.8 billion) in September 2022.
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Zenith
Zenith followed in second place with a 23.6 percent surge in fees and commission income to N117.9 billion in September 2022 from N95.4 billion in September 2021.
The sources of Zenith bank’s fee and commission income include credit-related fees of N8 billion, account maintenance fee (N28.1 billion), income from financial guarantee contracts issued (N7.12 billion), and fees on electronic products (N36 billion).
Foreign currency transaction fees and commission contributed N4.4 billion, asset-based management fees (N6.6 billion), auction fees income (N330 million), and corporate finance fees (N293 million).
Foreign withdrawal charges, commission on letters of credit, and commission on agency and collection services contributed N8.9 billion, N7.24 billion, and N10.7 billion respectively in the period ended September 2022.
Guaranty Trust Holding Company (GTCO)
GTCO fees and commission income grew by 18.2 percent to N66.9 billion in September 2022 from N56.6 billion in September 2021.
The bank fee and commission income was obtained from credit-related fees and commissions, account maintenance charges, corporate finance fees, e-business income, and asset management fees with N7.1 billion, N15.8 billion, N5.7 billion, N15.2 billion, and N562 million.
Commission on foreign exchange deals contributed N6.48 billion, commission on touch points (N502.8 million), income from financial guarantee contracts issued (N3.3 billion), account services, maintenance, and ancillary banking charges (N7.9 billion) and transfers related charges (N4.32 billion) in September 2022.
Access Bank
Access Bank recorded a 17.5 percent growth in its fee and commission income to N133.5 billion in September 2022 from N113.6 billion in September 2021.
Access bank fee and commission income was obtained from credit-related fees and commissions which contributed N41.7 billion, account maintenance charge and handling commission (N18.7 billion), commission on bills and letters of credit (N4.91 billion), and commissions on collections (N2.32 billion).
The commission on other financial services contributed N13.2 billion, commission on foreign currency-denominated transactions (N2.47 billion), channels and other e-business income (N49.4 billion), and retail account charges (N731 million) in September 2022.
First Bank
First Bank recorded a 6.7 percent growth to N110.8 billion in September 2022 from N103.8 billion in September 2021.
First Bank’s fee and commission income sources are credit-related fees, letters of credit commissions and fees, electronic banking fees, and commission on bonds and guarantees which contributed N8.24 billion, N18.07 billion, N40 million and N1.3 billion respectively.
The fund’s transfer & intermediation fees contributed the sum of N9.36 billion, account maintenance (N13.1 billion), brokerage and intermediations (N3 billion), custodian fees (N6.07 billion), financial advisory fees (N2.6 billion), fund management fees (N4.88 billion), other fees and commissions (N4.2 billion) in September 2022.
