Nine Nigerian banks raked in a sum of N74 billion from their e-business earnings in the first quarter of 2023 as tier-1 banks UBA, Access Bank, and Zenith Bank topped the list of highest earners.
Banks in Nigeria have increasingly resorted to generating income from digital channels such as their mobile applications, USSD channels, and online banking targeting Nigerians from all works of life.
Efforts at increasing revenue from digital channels have been supported heavily by the Central Bank through initiatives such as BVN, POS, naira redesign and other banking policies driving financial inclusion.
Nine banks surveyed by BusinessDay recorded cumulative electronic banking income of N74.22 billion in the first quarter of 2023, 15.3 percent increase from N64.35 billion in the first quarter of 2022.
The banks surveyed are UBA, Access Bank, Zenith Bank, Guaranty Trust Holding Company (GTCO), First City Monument Bank (FCMB), Union Bank, Wema Bank, Stanbic IBTC Holdings and Fidelity Bank.
“The significant rise in the value of electronic transactions in the first three months of the year relative to the corresponding period of the last year can be attributed to the CBN’s initiative to redesign the naira bills and reduce the amount of physical currency in circulation,” analysts at FBNQuest said in a note.
The latest data from the Nigeria Inter-Bank Settlement System show that the total value of electronic transactions recorded under the NIBSS Instant Payments platform increased by 52 percent to N48.3 trillion in March 2023.
Bank analysis
United Bank for Africa
UBA’s electronic banking income stood at N20.93 billion in the first quarter of 2023, 38.5 percent increase from N15.11 billion in the first quarter of 2022.
The bank’s account maintenance fee rose to N5.35 billion, up 36.5 percent from N3.92 billion. Fees and commission income increased to N52.19 billion, 24 percent increase from N42.1 billion in the reviewed period.
Access Holdings
Access Holdings’ channels and other e-business income rose to N20.66 billion in the first quarter of 2023, up 2.6 percent from N20.13 billion in the first quarter of 2022.
Account maintenance charge and handling commission grew marginally by 9 percent to N6.58 billion from N6.04 billion. Access Holdings’ fee and commission increased by 9 percent to N61.26 billion in the first quarter of 2023 from N56.3 billion in the first quarter of 2022.
Read also: Only 35% of Nigerian women own bank accounts – NBS
Zenith Bank
Zenith Bank’s fees on electronic products stood at N12.08 billion in the first quarter of 2023, 18.3 percent drop from N14.78 billion in the first quarter of 2022.
The bank’s account maintenance fee amounted to N10.19 billion, 10 percent increase from N9.27 billion. Net income on fees and commission grew marginally by 2 percent to N34.15 billion from N33.49 billion in the reviewed period.
GTCO
GTCO’s e-business income amounted to N11.42 billion in the first quarter of 2023, a 61.8 percent increase from N7.06 billion in the first quarter of 2022.
Account maintenance charges increased by 5.6 percent to N5.46 billion from N5.17 billion. GTCO’s fee and commission income surged 33.2 percent to N32.43 billion from N24.35 billion in the comparable period.
FCMB
FCMB’s electronics fees and commissions rose to N3.73 billion in the first quarter of 2023, 18.8 percent increase from N3.14 billion in the first quarter of 2022.
The bank’s account maintenance stood at N1.84 billion, 20.3 percent increase from N1.53 billion. Gross fee and commission income increased to N14.41 billion, 40.9 percent increase from N10.23 billion in the reviewed period.
Union Bank
Union Bank’s e-business fee income grew 4 percent to N1.97 billion in the first quarter of 2023 from N2.05 billion in the first quarter of 2022.
Account maintenance fee stood at N669 million, 13.6 percent increase from N589 million. The bank’s fees and commission income dropped 5 percent to N4.05 billion from N4.28 billion in the comparable period.
Wema Bank
Wema Bank’s fees on electronic products stood at N1.52 billion in the first quarter of 2023, a 93 percent increase from N787.91 million in the first quarter of 2022.
Account maintenance fees amounted to N734.1 million, up 15.7 percent from N634.59 million. The bank’s total fee and commission income stood at N4.93 billion, 21.7 percent from N4.05 billion in the reviewed period.
Stanbic IBTC Holdings
Stanbic IBTC Holdings’ electronic banking revenue increased to N958 million in the first quarter of 2023, a 66.9 percent increase from N574 million in the first quarter of 2022.
Account transaction fees amounted to N946 million, 16.6 percent increase from N811 million. The holding company fee and commission revenue grew to N26.02 billion, up 12.5 percent from N23.13 billion in the comparable period.
Fidelity Bank
Fidelity Bank’s commission on e-banking activities amounted to N955 million in the first quarter of 2023, 33 percent from N718 million in the first quarte of 2022.
Accounts maintenance charge stood at N1.61 billion, 31 percent increase from N1.23 billion. The bank’s total fees and commission income stood at N11.9 billion, 50.2 percent increase from N7.92 billion in the comparable period.
