• Friday, February 23, 2024
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Nigeria’s biggest banks grow advertisement expense by 55% to N57bn

Nigeria’s biggest banks grow advertisement expense by 55% to N57bn

Nigerian tier-1 banks have spent N56.86 billion on advertising and branding in the nine months of 2023, a development aimed at increasing brand visibility and enriching awareness of their potential customers.

The banks are FBN Holdings, United Bank for Africa, Guaranty Trust Holding Company, Access Bank, and Zenith Bank.

In a bid to increase brand image and reach out to potential customers, these banks recorded a cumulative 55 percent year-on-year growth from N36.67 billion in the nine months of 2022.

“The competitive landscape is a reason for the increase in advertising and branding expenses among banks. These banks advertise to generate more deposits,” Tesleemah Lateef, banking analyst at Cordros Securities Limited said.

Bank analysis

FBN Holdings

FBN Holdings’ advert and corporate promotions expenses increased to N20.23 billion in 9M’2023 from N7.59 billion in the same period of 2022.

The holding company’s advert and corporate promotions expenses as a percentage of operating expenses increased by 460 basis points to 9.4 percent in 9M’2023 from 4.8 percent during the same period of 2022.

FBN Holdings’ operating expenses surged to N214.64 billion in 9M’2023 from N158.91 billion in the same period of 2022.

Read also: Nigeria’s biggest banks reduce 2021 bad loans on debt review

United Bank for Africa (UBA)

UBA’s advertising, promotions, and branding expenses increased to N11.61 billion in 9M’2023 from N10.44 billion in the same period of 2022.

The bank’s advertising, promotions, and branding expenses gulped 4.9 percent of total other operating expenses in 9M’2023 which is a 150 basis points decline from 6.4 percent in 9M’2022.

UBA’s other operating expenses rose to N237.2 billion in 9M’2023 from N163.42 billion in the same period of 2022.

Guaranty Trust Holding Company (GTCO)

GTCO’s advert, promotion, and corporate gifts expenses increased to N5.38 billion in 9M’2023 from N4.4 billion in the same period of 2022.

Advert, promotion, and corporate gifts expenses gulped 4.7 percent of GTCo’s total other operating expenses, a 70 basis points decline from 5.4 percent in 9M’2022.

GTCO’s other operating expenses grew to N115.42 billion in 9M’2023 from N81.82 billion in the same period of 2022.

Read also: CRR policy pinches Nigeria’s biggest banks’ return to shareholders

Access Holdings

Access Holdings advertisements and marketing expenses grew to N12.06 billion in 9M’2023 from N8.08 billion in the same period of 2022.

The holding company’s advertisements and marketing expenses gulped 3.4 percent of total other operating expenses; a 20 basis points increase from 3.2 percent in 9M’2022.

Access Holdings’ other operating expenses increased to N358.57 billion in 9M’2023 from N254.34 billion in the same period of 2022.

Zenith Bank

Zenith Bank’s advertisement expenses increased to N7.57 billion in 9M’2023 from N6.16 billion in the same period of 2022.

The bank’s advertisement expenses gulped 4 percent of the total operating expenses year on year.

Zenith Bank’s operating expenses grew to N197.48 billion in 9M’2023 from N171.67 billion in the same period of 2022.