Nigerian tier-1 banks raked in the sum of N102.96 billion as income from account maintenance charged on their customers during the nine months of 2023, according to data compiled by BusinessDay.
This represents a 20.4 percent increase from the N85.53 billion obtained in the nine months of 2022.
The banks surveyed include First Bank, United Bank for Africa, Guaranty Trust Holding Company, Access Bank, and Zenith Bank.
The quoted banks’ total account maintenance charges on customers accounted for 13.6 percent of the total fees and commission income in 9M’2023, from 14.8 percent recorded in the previous year.
According to the Central Bank of Nigeria, the account maintenance fees are charged on current accounts only regarding customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank.
Banks’ earnings from account maintenance charges, though low when compared to other revenue streams, still make up a significant portion of their non-interest income.
The total fees and commission income from the tier-1 banks increased to N755.61 billion in 9M’2023 from N579.01 billion in 2022.
Bank analysis
Zenith Bank
Zenith Bank’s account maintenance contributed 25.6 percent to the total fees and commission income in 9M’2023, indicating a 170 basis points increase from 23.9 percent contributed in the same period of 2022.
The bank’s account maintenance fee grew to N33.33 billion in 9M’2023 from N28.15 billion in 2022.
Total fee and commission income surged to N130.33 billion in 9M’2023 from N117.9 billion in 2022.
Other contributors to the total fee and commission income are credit-related fees which increased to N10.01 billion from N8.02 billion.
Income from financial guarantee contracts issued dropped to N6.17 billion from N7.12 billion while fees on electronic products also dropped to N33.55 billion from N36.07 billion.
Foreign currency transaction fees and commissions increased to N7.38 billion in 9M’2023 from N4.44 billion in the same period of 2022.
Asset-based management fees surged to N8.14 billion from N6.66 billion while auction fees income amounted to N382 million from N330 million during the period reviewed.
Corporate finance fees dipped to N68 million from N293 million while foreign withdrawal charges increased to N15.27 billion from N8.9 billion.
Commission on letters of credit surged to N8.65 billion from N7.25 billion while commission on agency and collection services dropped to N7.38 billion from N10.69 billion.
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Guaranty Trust Holding Company (GTCO)
GTCO’s account maintenance contributed 19.8 percent to the total fees and commission income in 9M’2023, indicating 40 basis points decline from 20.2 percent contributed in the same period of 2022.
The holding company’s account maintenance charges grew to N18.04 billion in 9M’2023 from N15.88 billion in 2022.
Total fees and commission income increased to N91.32 billion in 9M’2023 from N78.7 billion in 2022.
Other contributors to the total fees and commission income are credit-related fees and commissions which increased to N9.24 billion from N7.10 billion.
Corporate finance fees dropped to N3.21 billion from N5.72 billion while asset management fees increased to N654.98 million from N562.03 million.
E-business Income grew to N30.91 billion from N26.94 billion while commission on foreign exchange deals increased to N9.12 billion from N6.48 billion.
Commission on touch points rose to N113.01 million from N502.81 million while income from financial guarantee contracts issued grew to N4.28 billion from N3.3 billion.
Account services, maintenance, and ancillary banking charges climbed to N8.3 billion in 9M’2023 from N7.89 billion in the same period of 2022.
Transfers-related charges rose to N7.45 billion in 9M’2023 from N4.32 billion in the similar period of 2022.
FBN Holdings
FBN Holdings account maintenance contributed 10.5 percent to the total fees and commission income in 9M’2023, indicating a 140 basis points decline from 11.9 percent in the same period of 2022.
The holding company’s account maintenance income surged to N15.07 billion in 9M’2023 from N13.15 billion in 2022.
Total fees and commission income grew to N143.46 billion in 9M’2023 from N110.84 billion in 2022.
Other contributors to the total fees and commission income are credit-related fees which increased to N11.49 billion in 9M’2023 from N8.24 billion in the same period of 2022.
Letters of credit commissions and fees grew to N27.91 billion from N18.08 billion while electronic banking fees amounted to N48.79 billion from N40 billion.
Commission on bonds and guarantees stood at N1.05 billion from N1.3 billion while funds transfer & intermediation fees rose to N13.31 billion from N9.37 billion.
Brokerage and intermediations fees arrived at N3.14 billion from N2.91 billion while custodian fees grew to N8.47 billion from N6.07 billion.
Financial advisory fees amounted to N2.8 billion in 9M’2023 from N2.67 billion in the same period of 2022.
Fund management fees rose to N6 billion from N4.88 billion while other fees and commissions climbed to N5.44 billion from N4.2 billion during the period reviewed.
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Access Holdings
Access Holdings account maintenance contributed 10.5 percent to the total fees and commission income in 9M’2023, 350 basis points decline from 14 percent contributed in the same period of 2022.
The holding company’s account maintenance charge and handling commission grew to N21.85 billion in 9M’2023 from N18.71 billion in 2022.
Total fees and commission income grew to N208.18 billion in 9M’2023 from N133.49 billion in a similar period in 2022.
Other contributors to the total fees and commission income are credit-related fees and commissions which grew to N83.63 billion from N41.72 billion.
Commission on bills and letters of credit climbed to N6.87 billion in 9M’2023 from N4.91 billion in the same period of 2022.
Commissions on collections increased to N3.44 billion from N2.32 billion while commissions on other financial services surged to N17.89 billion from N13.23 billion.
Commission on foreign currency-denominated transactions climbed to N3.06 billion from N2.47 billion while channels and other e-business income surged to N70.35 billion from N49.4 billion.
Retail account charges amounted to N1.09 billion in 9M’2023 from N731 million in the same period of 2022.
United Bank for Africa (UBA)
United Bank for Africa’s account maintenance contributed 8 percent to the total fees and commission income in 9M’2023, indicating a 100 basis points decline from 7 percent contributed in the same period of 2022.
The bank’s account maintenance fee grew to N14.67 billion in 9M’2023 from N9.64 billion in 2022.
Total fees and commission income jumped to N182.32 billion in 9M’2023 from N138.08 billion in 2022.
Other contributors to the total fees and commission income are credit-related fees and commissions which dropped to N16.37 billion from N18.41 billion.
Commission on turnover rose to N3.73 billion from N2.98 billion while electronic banking income surged to N75.75 billion from N47.96 billion.
Funds transfer fee arrived at N11.29 billion from N6.59 billion while trade transactions income dropped to N15.06 billion from N23.88 billion.
Remittance fees grew to N7.3 billion from N4.81 billion while commissions on transactional services rose to N33.31 billion from N18.37 billion.
Pension funds custody fees dropped to N4.85 billion in 9M’2023 from N5.45 billion in the same period of 2022.
