Six Banks Rake In N14.2bn Through Account Maintenance Fee

1 min read

SIX commercial banks made N14.2bn from account maintenance fees in the first half of 2021.

The unaudited financial statements sent to the Nigerian Exchange Limited showed that the amount represents a 44.9 percent growth in that income line for the six banks within the period under review compared to similar periods in 2020.

Account maintenance fee is a charge that account holders may incur monthly just for having a checking account with a financial institution. Not every financial institution charges these fees (though many do), and they may not apply to every type of account offered.

The Central Bank of Nigeria (CBN) revised guidelines for Charges by Banks, Other Financial and Non-Bank Financial Institutions states that Current Account Maintenance Fee (CAMF) is only applicable to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank.

READ ALSO  AfDB, UK FCDO Approve $1 Billion For South Africa’s Just Energy Transition

It also said it is negotiable on the basis of one per mille from January 2020.

First Bank alone grossed over half of the total sum as it raked in N7.9bn as against the N5.6bn it made in the same period in 2020 amounting to 55.6% of the total earnings of the banks.

FCMB closely followed with N2.2bn, a growth from the N1.6bn it grossed in the same period of 2020. The amount translates to 15.5% of the total earning.

Sterling Bank followed with N1.3bn, up from N800m in 2020, translating to 9.2% of the share.

Union Bank recorded N1bn also an improvement from N736m in 2020, translating to 7% of the share.

READ ALSO  Nigerian Senators Pledge 109 Million December Salaries For Kaduna Airstrike Victims

Wema Bank and Unity bank made N943m and N850m respectively. The amount indicates a growth from N488m and N597m in 2020, representing 6.6% and 6% respectively.

Support Investigative Journalism and Mentorship

Courageous Journalism of Truth,Transparency and Development is in the DNA of Prime Business Africa; By donating as little as N1000 or $1 today, you are helping to keep credible journalism and life-changing information free for all.

READ ALSO  Buhari Hails Danjuma At 86, Says He Served Army With Pride, Valour
+ posts