Five Banks Rake In N51.15bn From e-banking Charges
In spite of fierce rivalry within the financial sector, a total of N51.15 billion in electronic banking income was generated by five banks during the first half of the year.
This represents a notable growth of 30.17 per cent from the N39.29 billion recorded in the previous half-year period ending on June 30, 2022.
These five banks include; FBN Holdings, FCMB Group Plc, Wema Bank Plc, Fidelity Bank Plc, and Sterling Financial Holdings Company Plc.
Nigerian financial institutions have persistently encountered competition from Financial Technology (FinTech) enterprises such as Opay and Palmpay, which have provided customers with zero-commission options for fund transfers.
The entry of MTN Nigeria and Airtel Africa into the financial services arena has further intensified the competition, particularly with banks and existing fintech companies operating within the country.
Market analysts had predicted a potential decrease in electronic banking income for banks due to licenses issued by the Central Bank of Nigeria (CBN) to telecommunications companies, permitting them to function as Payment Service Banks (PSBs).
Economic Confidential checks showed that the five banks aggressively grew their E-banking income in the period under review.
For instance, FBN Holdings reported N34.01billion E-banking income in H1 2023, an increase of 33.2 per cent from N25.54billion in H1 2022, while Fidelity Bank reported N2.11billion E-banking income in H1 2023, a growth of 43 per cent from N1.48billion reported in H1 2022.
FCMB Group declared N7.4billion E-banking income in H1 2023, an increase of 10.5 per cent from N6.7billion in H1 2022 as Sterling Financial Holdings Company declared N4.49billion E-banking income in H1 2023, from N3.92billion in H1 2022.
In addition, Wema bank reported 89.7 per cent increase in its E-banking income to N3.14billion in H1 2023 from N1.65billion in H1 2022.
Cumulatively, the five banks generated a sum of N154.17billion fee and commission income in H1 2023, an increase of 30.1 per cent from N118.5 billion in H1 2022.
Other fees and commission income generated by the banks include accounts maintenance charge, E-business, income, among others.
In H1 2023, FBN Holdings generated N88.85 billion fee and commission income, a 26 per cent increase from N70.69 billion in H1 2022.
For Fidelity Bank, it declared N21.5 billion fee and commission in H1 2023, a growth of 49.5 per cent from N14.38 billion as FCMB group declared N28.5 billion fee and commission income from customers in H1 2023, a growth of 29 per cent from N22.07 billion reported in H1 2022.
In addition, Sterling Financial Holdings Company announced N11.6 billion fee and commission in H1 2023, a growth of 11 per cent from N10.5 billion in H1 2022 as Wema Bank reported N10.03 billion fee and commission in H1 2023, a growth of 34 per cent from N7.48 billion reported in H1 2022.
