Nigerian banks increase advertising spending by 61% to N18bn

In a bid to increase brand image and reach out to potential customers, eight Nigerian commercial banks spent the sum of N18 billion on advertising and branding in the first quarter of 2023 for brand visibility and enriched awareness to their potential customers.

This is according to an analysis carried out by BusinessDay, based on the financial statements released by the banks on the Nigerian Exchange Group.

Further findings showed Nigerian banks recorded 61.2 percent growth in advertising and branding expenses in the first quarter of 2023 from N11 billion in the similar period 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.

The Nigerian banks surveyed include Access Holding PLC, Guaranty Trust Holding Company Plc (GTCO), Fidelity Bank, Stanbic IBTC Bank, United Bank for Africa (UBA), Union Bank, Wema Bank, and Zenith Bank.

“Advertising and Public Relations are two of the most powerful tools that are utilised in the business world to communicate brands’ benefits and create awareness about new or existing products,” Abimbola Mohammed, a brand specialist said.

“ These, in turn, help companies to reach newer markets or consolidate existing ones;The importance of advertising and public relations can never be underestimated, as no company can really survive without them,” he added.

Fidelity Bank

Fidelity Bank topped the list with the most advertising and branding expenses. The bank’s spending on marketing, communication, and entertainment soared by 1434 percent to N6.46 billion in the first quarter of 2023.

This marked a significant increase from the N2.65 billion spent in the same period of the previous year.

Fidelity bank’s other operating expenses rose to N29.46 billion in the first quarter of 2023, 58.2 percent increase from N18.62 billion in the first quarter of 2022.

Founded in 1988, Fidelity Bank Plc is a commercial bank in Nigeria headquartered in Victoria Island, Lagos. It is licensed as a commercial bank with international authorisation by the Central Bank of Nigeria.

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United Bank of Africa Plc (UBA)

United Bank of Africa’s advertising, promotion, and branding expenses amounted to N3.8 billion in the first quarter of 2023, 60 percent increase from N2.38 billion corresponding period of 2022.

Similarly, UBA recorded 49.8 percent growth in other operating expenses which arrived at N69.38 billion in the first quarter of 2023, up from N46.32 billion recorded in the corresponding quarter of 2022.

Founded in 1948, United Bank for Africa Plc is a multinational pan-African financial services group headquartered in Lagos Island, Lagos and known as Africa’s Global Bank. It has subsidiaries in 20 African countries and offices in London, Paris and New York.

Zenith Bank

Zenith Bank allocated the sum of N2.3 billion for advertising expenses in the first quarter of 2023, indicating a 21.7 percent growth from the N1.89 billion incurred expenses in the similar period of 2022.

The bank’s other operating expenses stood at N68.14 billion in the first quarter of 2023, up 26 percent from N54.28 billion in the first quarter of 2022.

Founded in 1990, Zenith Bank Plc is a financial service provider in Nigeria and Anglophone West Africa, headquartered in Victoria Island, Lagos. It is licensed as a commercial bank by the Central Bank of Nigeria.

Access Holding

Access Holding spent the sum of N2.04 billion on advertising and marketing expenses in the first quarter of 2023, indicating an 18.6 percent increase from N1.72 billion in the first quarter of 2022.

The holding company’s other operating expenses stood at N104.06 billion in the first quarter of 2023, 35.4 percent increase from N76.83 billion in the first quarter of 2022.

Founded in 1989, Access Holdings Plc formerly (Access Bank Plc) is a leading financial institution offering banking products and services for the retail, private, corporate and institutional and non-institutional sectors in Africa and Europe.

Guaranty Trust Holding Company (GTCO)

Guaranty Trust Holding Company recorded 58.9 percent growth in advertising, promotion, and corporate gifts expenses which amounted to N1.7 billion in the first quarter of 2023 from N1.07 billion in the same period of 2022.

The holding company recorded 24 percent growth in other operating expenses which amounted to N36.37 billion in the first quarter of 2023, compared to N29.3 billion in the corresponding quarter of 2022.

Founded in 1990, Guaranty Trust Holding Company Plc is a multinational financial services group, that offers retail and investment banking, pension management, asset management and payments services, headquartered in Victoria Island, Lagos, Nigeria

Stanbic IBTC Holdings

Stanbic IBTC Holdings’ advertising, promotion, and corporate gifts expenses stood at N0.60 billion in the first quarter of 2023, a 1.7 percent decline from N0.59 billion in the first quarter of 2022.

However, the holding company recorded a 19.6 percent increase in other operating expenses to N27.47 billion in the first quarter of 2023 from N22.96 billion recorded in the first quarter of 2022.

Founded in 1989, Stanbic IBTC Holdings is a financial service holding company in Nigeria with subsidiaries in Banking, Stock Brokerage, Investment Advisory, Asset Management, Investor Services, Pension Management, Trustees Insurance Brokerage and life Insurance businesses. The company’s corporate headquarters, I.B.T.C. Place, is situated at Walter Carrington Crescent, Victoria Island, Lagos.

Wema Bank

Wema Bank spent the sum of N0.43 billion on advertising and marketing in the first quarter of 2023, 19.4 percent increase from the N0.36 billion spent in the same period of the preceding year.

The bank’s other operating expenses grew to N7.09 billion in the first quarter of 2023, a 5 percent increase from N6.75 billion in the corresponding period of 2022.

Founded in 1945, Wema Bank Plc is a Nigerian commercial bank licensed by the Central Bank of Nigeria; the regulator of the nation’s banking sector. As of 2019, Wema bank operates the largest digital banking system in Nigeria, ALAT By Wema, which is fully in use in all of the nation’s thirty seven states and territory.

Union Bank of Nigeria

Union Bank of Nigeria’s advertising and promotion expenses amounted to N0.37 billion in the first quarter of 2023, 15.6 percent increase from the N0.32 billion in the same period of the preceding year.

The bank’s other operating expenses stood at N11.98 billion in the first quarter of 2023,a 15.2 percent increase from N10.4 billion recorded in the first quarter of 2022.

Founded in 1917, Union Bank is a commercial bank serving individuals, small and medium-sized companies, as well as large corporations and organizations. In July 2009, it was rated the 556th largest bank in the world and the 14th largest bank in Africa.