Zenith Bank’s electronic income hits 12-year high

Zenith Bank’s electronic banking income has increased to its highest level in at least 12 years. Electronic banking income surged by 85 percent to N41.2 billion in the first half of 2024 from N22.2 billion in the same period of last year.

Electronic banking income represents income from transactions on electronic channels such as ATMs, POSs, and mobile banking platforms. According to the bank’s financial statement, its profit after tax jumped 98 percent to N577.9 billion in H1 from N291.7 billion in the corresponding period of last year.

Its fees and commission income climbed 102.5 percent to N162 billion in June 2023 from N80 billion in June 2023.

Fees and commission income include fees on electronic products (N41 billion), account maintenance fees (N32.7 billion), foreign withdrawal charges (N31 billion), commission on letters of credit (N14 billion), income from financial guaranteed contracts issued (N13.9 billion), and commission on agency and collection services (N7 billion), among others.

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Fee and commission expenses rose to N52 billion in the first half of 2024, up 44 percent from N36 billion in the first half of 2023. The bank expects growth in digital income especially as it ramps up digital infrastructure investments.

“The Group will continue to invest in enhancing its digital banking capabilities and is expediting the completion of its technology infrastructure upgrade. Its track record of successful capital raises puts it on a solid footing to meet the new minimum capital requirements for commercial banks with international authorisation, well ahead of the deadline set by the CBN,” it said.

The bank added that it is on track for a record year in its financial performance and will continue to deliver maximum value to its shareholders while ensuring a strong corporate governance culture.

The bank reported that operating expenses increased to N333.2 billion from N148 billion due to an increase in the Asset Management Corporation of Nigeria’s surcharge of N92 billion. It noted that it has continued to strive for operational efficiency, resulting in a marginal increase in the cost-to-income ratio y/y from 38.5 percent to 39.4 percent.