Nigerian tier-1 banks earned N125 billion from electronic banking charges in the first three months of 2024, according to data compiled by BusinessDay.
This represents a 50.9 percent increase from the N82.8 billion earned in the corresponding period of 2023. The banks surveyed include First Bank, United Bank for Africa, Guaranty Trust Holding Company, Access Bank, and Zenith Bank.
A breakdown of the income generated from these banks’ e-business channels revealed that UBA, Access Holdings, and Zenith reported the highest amounts, while FBN Holdings and GTCO reported losses during the period.
According to their first-quarter financial results, UBA recorded N44.3 billion in Q1 2024, up 111.9 percent from N20.9 billion.
Read also: Banks dominate Nigeria branding landscape amid economic headwinds
Access Holdings came second in e-business revenue for the period, raking in N33.3 billion in Q1, up 61.6 percent from N20.6 billion.
With Zenith Bank in third place, the bank’s e-banking revenue grew by 64 percent to N19.9 billion from N12.1 billion.
However, FBN Holdings’ e-banking revenue fell to N16.9 billion from N17.8 billion, while GTCO fell to N11.2 billion from N11.4 billion.
Gloria Fadipe, a research analyst at CSL Stockbrokers, said the rise in electronic banking income was because of Nigerians’ growing reliance on electronic channels.
E-business income includes revenue from electronic channels, card products, and related services. These channels include mobile applications, USSD channels, automated teller machines (ATMs), agency banking, internet banking, and Point of Sales (POS) payments.
According to a recent report from Zone, a blockchain payment platform and TC insight, the growth of mobile app transfers, online transfers, mobile money operators, and instant payments is due to Nigerians becoming much more cashless and dependent on digital systems to function properly.
According to the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions in the country rose to N237 trillion in the first quarter of 2024, an all-time quarterly high.
