Emmanuel OchayiIn a half-year financial report that highlights the banking landscape’s resilience and adaptability, Zenith Bank has emerged as the frontrunner among 11 banks listed on the Nigerian Exchange, collectively amassing an impressive N72.723 billion in account maintenance charges for the first half of 2023.
This figure represents a robust 7.44% increase when compared to the N67.690 billion recorded during the same period in 2022.
Account maintenance charges, as outlined by the Central Bank of Nigeria (CBN), are applied exclusively to current accounts in relation to customer-induced debit transactions to third parties and debit transfers or lodgments into the customer’s account at another bank.
While these charges contribute significantly to non-interest income, they remain relatively low in comparison to other revenue streams.
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Under CBN’s directive, Nigerian banks can levy a “negotiable” N1 per mille on customer debit transactions in current accounts, often referred to as the Commission on Turnover (COT).
Ranking the Banks:
Zenith Bank
Zenith Bank takes the lead, generating a substantial N21.02 billion from account maintenance charges. This amount constitutes a significant 28.91% of the total income earned by the 11 banks. Zenith Bank’s account maintenance income grew by 6.32% compared to the N19.77 billion recorded in H1 2022. Additionally, the bank reported an extraordinary 162% year-on-year increase in its profit after tax, soaring to N291.73 billion.
Access Holdings
Access Holdings secured the second position, with account maintenance income reaching N13.363 billion, marking a 10.97% year-on-year growth. Access Holdings notably ranks 5th in terms of profit before tax growth, boasting a 52.37% increase in PAT, reaching N135.441 billion in H1 2023.
GTCO
GTCO captured the third spot, with a year-on-year increase of 11.08% in account maintenance income, totaling N10.481 billion. Impressively, the holding company also witnessed an astonishing 261.65% year-on-year surge in profit after tax, rising to N280.48 billion.
UBA
UBA stands in fourth place, generating N9.64 billion in account maintenance income for H1 2023. This figure reflects a remarkable 46.11% increase compared to H1 2022. UBA’s net profit also witnessed substantial growth, surging by 437.76% to N378.24 billion.
First Bank
First Bank secured the fifth position, although experiencing a 43.5% decline in account maintenance income, with N5.19 billion generated in H1 2023. Nonetheless, the bank’s profit after tax recorded a significant 231% year-on-year increase, reaching N187.18 billion.
FCMB
FCMB, ranking sixth, generated N3.85 billion from account maintenance, marking a notable 16.3% increase compared to H1 2022. Impressively, FCMB grew its profit after tax by 159.17% year-on-year, achieving N35.410 billion in the same period.
Others on the list include:
- Stanbic IBTC with N2.643 billion
- Sterling Bank with N2.392 billion
- Fidelity Bank with N1.769 billion
- Wema Bank with N1.636 million
- Unity Bank with N745 million
These results underscore the banking sector’s capacity to adapt to regulatory changes and evolving customer preferences, with account maintenance charges playing a pivotal role in bolstering banks’ non-interest income.
As the year progresses, these financial institutions will continue to navigate the dynamic financial landscape while striving to meet the evolving needs of their customers.
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