6 banks earn 667.21 billion naira thanks to e-Banking
As more Nigerians embrace the e-banking model, commercial banks are making the most of it, as six banks in the past five years have withdrawn 667.21 billion naira in revenue from transaction fees. electronic banking.
This amount was achieved between 2016 and 2020 by Zenith Bank, Access Bank, FBN Holdings, United Bank for Africa (UBA), Fidelity Bank and Guaranty Trust Holding Company (GTCO). Among the six banks, FBN has made the most of it, making 177.58 billion naira in the past five years.
The financial conglomerate, which has the largest network of banking agents in the country, recently released its half-year results for 2021, in which it reported total revenue of around N28 billion from electronic transactions during of the first semester.
A breakdown of the bank’s unaudited financial statements for the first half of the year shows that online banking revenues grew 32.7 percent year-on-year, from the N21.72 billion recorded during the year. from the corresponding period of last year.
Last year, the bank generated N48.68 billion through electronic transactions, a slight increase from the N48.03 billion it generated in 2019. Its e-business segment revenues increased from 21.83 billion naira in 2016 to 24.98 billion naira. in 2017, and 34.03 billion naira in 2018.
UBA has recorded the second highest income from online banking transactions at N175.67 billion in the past five years. The bank’s e-commerce income was cut by more than half in 2017, when it made 20.92 billion Naira against 43.82 billion Naira in 2016. However, it did better in 2018, generating 27.92 billion naira and 38.76 billion naira in 2019. Last year, UBA made 44.24 billion naira through online banking transactions.
Access Bank, which completed a major merger with Diamond Bank in 2019, saw a significant increase in its income from electronic transactions, which accumulated to 127.6 billion naira during the five-year period.
Although its income from online banking transactions fell sharply to 5.79 billion naira in 2017 from 21.29 billion naira in 2016, Access Bank was able to increase its e-commerce income to 8.38 billion naira. in 2018. 36.04 billion naira in 2019 after its merger and increased further last year to reach 56.09 billion naira.
Zenith Bank generated 112.97 billion naira from its online banking transactions during the same period. From 10.68 billion naira in 2016, its e-commerce income increased to 12.28 billion naira in 2017, 20.42 billion naira in 2018 and 42.51 billion naira in 2019. However, income has increased. fell more than 36% in 2020 when it made 27.07 billion naira through online banking.
Guaranty Trust (GTCO) during the same period generated 56.7 billion naira, having generated 12.21 billion naira in 2016, 7.47 billion naira in 2017, 19.28 billion naira in 2018, 12 billion naira in 2019 and 16.16 billion naira in 2020. Fidelity Bank made 16.68 billion naira through e-commerce during the five-year period.