Zenith, GTBank, Others Among Nine Nigerian Banks With Highest Earnings From Fees, Commissions

• Nine commercial banks have recorded robust earnings from fees and commissions in 2024
• A breakdown of the bank’s financials shows that the total earnings from the bank’s fees and commissions reached N2.59 trillion
• The banks were led by United Bank for Africa (UBA), Access Bank, GTBank, and Zenith Bank, among others

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nine Nigerian banks earned about N2.59 trillion in fees and commission revenue in 2024.

Reports from the banks’ financial statements for 2024 released by the Nigerian Exchange Limited showed that they include Stanbic IBTC Holdings, FCMB Group, Wema Bank, UBA, Fidelity Bank, Guaranty Trust Holding Company, Zenith Bank, Access Holdings, and First Holdco.

Banks earn from account maintenance and others

Fees and commission income are revenue earned from various fees and commissions charged for services to customers.

They include charges for account maintenance, transaction fees, and fees regarding credit card purchases, digital banking, and other financial services.

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UBA led the pack among the nine banks with N589 billion generated from fees and commissions in 2024 alone. The earnings represent a 91.8% rise from N307.3 billion in 2023.

The bank’s earnings were driven by higher foreign currency transaction fees, an increase in credit-related income, and digital services across its operations in Africa.

The banks with the largest fees and commission income

Access Holdings generated N514.1 billion in 2024, an 85.4% increase from N277.5 billion in the previous year.

The increase was due to the bank’s expansion in digital banking services, especially credit-related fees and commissions.

First Bank recorded a 38.2% growth as fees and commissions hit N304.5 billion in 2024 from N220.3 billion the previous year, driven largely by the bank’s digital growth and foreign exchange-related transactions.

Guaranty Trust Bank recorded a robust 78.3% rise, with fees and commissions, hitting N221.2 billion last year from N124.2 billion the previous year.

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Zenith Bank saw a strong 89.4% growth in fee and commission income, hitting N206.9 billion in 2024, from N109.3 billion in 2023.

Stanbic IBTC recorded a 54.5% rise in fees and commissions at N170.4 billion in 2024, up from N110.3 billion the previous year.

Wema Bank experienced a robust increase, with commissions and fees rising by 123.7% to N55.6 billion in 2024, from N24.96 billion.

Fidelity Bank reported a 30.6% rise in fee and commission income to N73.3 billion in 2024 from N56.1 billion in 2023.

FCMB experienced a 29.3% increase in fee and commission income, which climbed to N58.8 billion from N45.4 billion in 2023.

Fidelity Bank also posted a solid growth of 30.6 per cent in fee and commission income, which climbed to N73.3bn in 2024, up from N56.1bn in 2023.

FCMB Group Plc recorded a 29.3 per cent increase in fee and commission income, which rose to N58.8bn in 2024 from N45.4bn in 2023.

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Experts explain the reason for the surge

Punch reports that experts have attributed the increase to the shift from cash-based transactions to digital.

According to them, alternative banking channels adopted by Nigerians, such as online transactions, PoS, and mobile transfers, have significantly affected the banks’ earnings from fees and commissions.

10 Banks Debit Customers Over N1trn

The development comes as 10 leading Nigerian banks raked in a combined N1.01 trillion from account maintenance fees, electronic banking charges, and digital transaction services in 2024. 

The figure is a significant increase from N688.64 billion recorded in 2023.

Electronic banking income represents income taken on transactions processed via electronic channels such as ATMs, point-of-sale (PoS), mobile banking, USSD platforms, and credit and debit card transactions. 

The 10 banks surveyed are Access Holdings, First City Monument Bank, Fidelity Bank, First Bank, Guaranty Trust Holding Company(GTCO), Stanbic IBTC, Sterling Bank, United Bank for Africa, Wema Bank, and Zenith Bank.

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Legit.ng analysis showed that United Bank for Africa (UBA), Access Bank, and Zenith Bank topped the earnings chart, accounting for more than 47% of the total digital income, according to a review of financial statements by the banks.

Banks reap N14tn from loans to customers

Legit.ng earlier reported that nine leading banks earned a total of N14.26 trillion in interest income in 2024, a sharp rise compared to the N6.49 trillion they recorded the year before.

This income came from loans they gave to customers, according to their audited financial statements submitted to the Nigerian Exchange Limited.

According to the Corporate Finance Institute, interest income is the amount paid to an entity for lending its money or letting another entity (individual or corporate) use its funds.

Source: Legit.ng