Eight listed commercial banks’ fees and commission income rose by 70 percent to N1.13 billion in the first six months (H1) of 2024 from N544.4 million in the same period of 2023.
Fees and commission income represent revenue from digital banking charges on cash or card maintenance and customer payment transactions.
BusinessDay findings show that the adoption of electronic banking and technology, coupled with an increased demand for digital banking services in H1 of 2024, resulted in higher fees and commission income for commercial banks.
The banks are: Ecobank Transnational Incorporated, Access Bank, Zenith Bank, FirstBank of Nigeria Holdings, Guarantee Trust Holding Company, Stanbic IBTC Holdings, FCMB Group, and Sterling Bank Holdings.
Further analysis shows that Ecobank Transnational Incorporated recorded the highest increase in fees and commission income by 96.3 percent to N384.1 million from N134.4 million in 2023.
Access Bank, FBN Holdings, GTCO, and Zenith Bank recorded a total fee and commission income of N604.3 million in H1 2024, a 63 percent increase from N314.4 million in H1 2023.
Stanbic IBTC Holdings reported N82.9 million, FCMB Group (N25.1 million) and Sterling Bank (N20.3 million).
Here is the breakdown of the listed banks’ fees and commission income.
Ecobank Transnational Incorporated
Ecobank recorded a 96.3 percent growth in fees and commission income to reach N384.1 million, from N134.4 million in 2023.
The source of the fee and commission income in the period were: credit-related fees and commissions, portfolio and other management fees, corporate finance fees, brokerage fees and commissions, and other fees, which contributed the sum of N100.6 million, N3.8 million, N8.2 million, N4.9 million and N14.7 million respectively.
Cash management and related fees contributed N188.2 million while card management fees recorded N63.7 million in H1 2023.
Access Holdings Plc
Access Holdings followed in second place with a 66.9 percent increase in fees and commission income to N250.9 million from N125 million.
The sources of Access’ fee and commission income include credit-related fees and commissions of N91.7 million, account maintenance charge and handling commission (N29.6 million), commission on bills and letters of credit (N7.7 million), and commissions on collections (N5.2 million).
Commission on other financial services and foreign currency-denominated transactions contributed N41.6 million, channels and other e-business income (N73.8 million), and Retail account charges (N1.4 million).
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FBN Holdings Plc
FBN Holdings recorded a 39.4 percent increase in fees and commission income to N129.9 million from N87.1 million.
The sources of FBN’s fee and commission income include credit-related fees of N17.9 million, letters of credit commissions and fees (N20.6 million), income from electronic banking fees issued (N35.1 million), and Commissions on bonds and guarantees (N2.4 million).
Fund transfer and intermediation fees contributed N13 million, Account maintenance fees (N17.2 million), Brokerage and intermediation (N3 million), Custodian, fund management, and other fees (N20.6 million).
GTCO
GTCO’s fees and commission income grew by 64.4 percent to N113.9 million from N58.4 million in 2023.
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 N11.2 million, N15.6 million, N2.7 million, N32.5 million, and N872,856.
Commission on foreign exchange deals contributed N16.4 million, commission on touch points (N3.5 million), income from financial guarantee contracts issued (N7.3 million), account services, maintenance, and ancillary banking charges (N16.2 million) and transfers related charges (N7.7 million).
Zenith Bank Plc
Zenith Bank recorded an 85.6 percent increase in fees and commission income to N109.6 million from N43.9 million.
The sources of Zenith Bank’s fee and commission income include account maintenance fee of N32.8 million, Income from financial guarantee contracts issued (N13.9 million), fees on electronic products issued (N41.2 million), and Foreign withdrawal charges (N30.8 million).
Commission on letters of credit contributed N14.5 million, Commission on agency and collection services (N7.07 million), Asset-based management fees, foreign currency transaction fees and commission (N13.2 million), Auction fees income and Corporate finance fees (N1.6 million).
Stanbic IBTC Holdings
Stanbic IBTC recorded a 47.3 percent increase in fees and commission income to N82.9 million from N51.2 million.
The sources of Stanbic’s fee and commission income include asset management fees of N47.2 million, Brokerage and financial advisory fees issued (N11.7 million), account transaction fees issued (N3.9 million), and card-based commission (N2.4 million).
Foreign currency service fees contributed N9.8 million, documentation and administration fees (N6.9 million), and Custody transaction fees, electronic banking, other fees, and commission revenue (N6.7 million).
FCMB Group
FCMB Group recorded a 23.8 percent increase in fees and commission income to N36.2 million from N28.5 million.
The sources of FCMB’s fee and commission income include account maintenance of N5.8 million, Asset Management Fees issued (N4.05 million), Electronics fees and commissions (N10.9 million), and Service fees and commissions (N12.6 million).
Commission on off-balance sheet transactions contributed N1.4 million, Credit-related fees (N474,761), Letters of credit commission (N814,281), and administration Fees (N141,886).
Sterling Holdings Plc
Sterling recorded a 24.3 percent increase in fees and commission income to N20.3 million from N15.9 million.
The sources of Sterling’s fee and commission income include commission on letters of credit and off-balance sheet transactions of N6.4 million, e-business commission and fees (N4.7 million), facility management fees (N2.4 million), and account maintenance fee (N2.9 million).
Commissions and similar income contributed N1.5 million while Other fees and commissions recorded N2.5 million.
