Nigeria’s top banks rake in N103bn from account maintenance, e-banking fees

Nigerian tier-1 banks raked in the sum of N102.96 billion as income from account maintenance charged on their customers during the nine mont...

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, 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 9M2023, from 14.8 percent recorded in the previous year.The Central Bank of Nigeria says the account maintenance fees are charged on current accounts only regarding customer-induced debit transactions to third parties and debit transfers/lodgements to the customers 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 report by Business Day shows that total fees and commission income from the tier-1 banks increased to N755.61 billion in 9M2023 from N579.01 billion in 2022.Zenith Banks account maintenance contributed 25.6 percent to the total fees and commission income in 9M2023, indicating a 170 basis points increase from 23.9 percent contributed in the same period of 2022. Foreign currency transaction fees and commissions increased to N7.38 billion in 9M2023 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.GTCOs account maintenance contributed 19.8 percent to the total fees and commission income in 9M2023, indicating a 40 basis points decline from the 20.2 percent contributed in the same period of 2022. The holding companys account maintenance charges grew to N18.04 billion in 9M2023 from N15.88 billion in 2022.Access Holdings account maintenance contributed 10.5 percent to the total fees and commission income in 9M2023, 350 basis points decline from 14 percent contributed in the same period of 2022. The holding companys account maintenance charge and handling commission grew to N21.85 billion in 9M2023 from N18.71 billion in 2022. Total fees and commission income grew to N208.18 billion in 9M2023 from N133.49 billion in a similar period in 2022. The post Nigerias top banks rake in N103bn from account maintenance, e-banking fees appeared first on Linda Ikeji Blog.