In the first quarter of 2022, banks listed on the Nigerian Exchange earned a total of ₦36.04 billion in account maintenance charges. This is according to data derived from the quarterly financial statements of Nigerian stock exchange-listed commercial banks.
Zenith Bank, Access Bank, and GTB topped the list of Nigerian banks with the highest income from current account maintenance during the review period. The amount generated from account maintenance charges in Q1 2022 represents a 17.5% increase over the ₦30.67 billion generated in the same period in 2021.
The Central Bank of Nigeria charges account maintenance fees on current accounts only for customer-induced debit transactions to third parties and debit transfers/lodges to the customer’s account in another bank.
Account maintenance charges, while low in comparison to other revenue streams account for a significant portion of banks’ non-interest income. According to the CBN’s directive on bank charges, Nigerian banks may charge their customers a “negotiable” ₦1 per mille.
The Nigerian commercial banks are ranked below based on their account maintenance earnings in the first quarter of 2022.
Zenith Bank – ₦9.27 billion
Zenith Bank is comfortably in the first place, having generated ₦9.27 billion from account maintenance, accounting for 25.7 per cent of the total income generated by the 12 banks. Zenith Bank increased its account maintenance income by 17.6 per cent from ₦7.88 billion in the first quarter of 2021.
GT Bank – ₦5.17 billion
Between January and March 2022, GT Bank earned ₦5.17 billion in account maintenance fees. This represents a 23.8 per cent increase over the ₦4.18 billion recorded in the same period in 2021.
However, its net profit fell by 5.1 per cent from ₦45.55 billion recorded during the same period the previous year to ₦43.21 billion.
First Bank – ₦4.14 billion
The account maintenance income of First Bank of Nigeria increased marginally by 2.2 per cent from ₦4.05 billion in Q1 2021 to ₦4.14 billion in Q1 2022. It accounted for 11.5 per cent of the industry’s total account maintenance income.
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First Bank’s profit after tax increased by 107.7% year on year to ₦32.4 billion in Q1 2022, up from ₦15.59 billion the previous year.
UBA – ₦3.92 billion
United Bank for Africa ranked fifth on the list, with ₦3.92 billion in revenue from account maintenance, a 24.5 per cent increase over the ₦3.15 billion recorded in the same period in 2021.
The account maintenance income of the pan-African bank accounts for 10.9 per cent of the total ₦36.04 billion recorded by the 12 banks under consideration. In terms of profit after tax, UBA increased its profit after tax by 8.8 per cent year on year to ₦41.49 billion during the review period.
- Unity Bank – ₦1.67 billion
- FCMB – ₦1.53 billion
- Fidelity Bank – ₦1.23 billion
- Stanbic IBTC – ₦927 million
- Sterling Bank – ₦911 million