Banks’ e-bank revenues for the first quarter increased by 12% against fintech indentations

Nigerian banks are not left behind in extracting revenue from the provision of electronic banking services, just like the financial technology companies. BusinessDay analysis shows that twelve of fourteen banks registered a growth of 12.4 percent in their electronic banking revenues (e-banking) in the first quarter of 2022 compared to the same period last year.

The banks, which include First Bank Holdings (FBNH), United Bank for Africa (UBA), Guaranty Trust Holding Company (GTCo), Access Holdings, Zenith Bank, Fidelity Bank, FCMB Group, Stanbic IBTC Holdings, Sterling Bank, Union Bank of Nigeria (UBN), Wema Bank and Unity Bank have continued to show resilience in recent years.

Total revenues from electronic businesses to Nigeria’s twelve listed banks rose to over N77.39 billion in the first quarter of 2022, up from N68.87 billion recorded in the corresponding period in 2021, according to data collected by BusinessDay.

Of these, e-bank revenues from tier 1 banks (FBNH, UBA, GTCo, Access and Zenith) accounted for 86 per cent. on the other hand, the tier 2 banks recorded higher growth rates in their e-banking revenues.

This is despite the rapid growth of fintech companies in Africa’s largest economy, which has increased from around 50 in 2016 to over 300 in 2022.

Fitch Ratings, one of the three leading global rating agencies, has said in its mid-year outlook for Nigeria that the country’s huge population provides opportunities for both commercial banks and fintech companies to grow.

The Global Assessment Body provided this assurance in response to concerns expressed by many industry players that licensing fintech companies to offer digital banking services in the country poses existential threats to Nigerian commercial banks.
Income from electronic banking includes fees charged to customers for the use of digital channels, such as debit cards, mobile applications, USSD channels, POS and other related online banking services.

These banks benefit greatly from the wave of mobile phone adoptions that provide user-friendly banking apps that are secure and seemingly work as social media apps. This increases the efficiency of operations and increases customer satisfaction by ensuring that transactions are carried out quickly.

Access Holdings
Access Holdings recorded the highest e-bank income among its counterparties, which amounted to N20.12 billion in the first quarter of 2022.
The group’s e-bank revenues represent an increase of 12 per cent from N17,9 billion registered in the same period last year.

Online banking revenues accounted for 36 per cent of fees and commission income in Q1 2022. The holding company registered N56.3 billion as fees and commission income in Q1 2022 up 44.5 per cent from N38.9 billion in Q1 2021.

United Bank for Africa (UBA)
UBA ranked second with its e-bank revenues of N15.11 billion in Q1 2022, which represents an increase of 21 percent from N12.5 billion in the same period last year.

Online banking revenues accounted for 36 per cent of fees and commission income in Q1 2022. The bank registered N42.1 billion as fees and commission income in Q1 2022, up 20.4 per cent from N34.9 billion in Q1 2021.

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Zenith Bank
Zenith came in third with its revenues on electronic products which were N14.8 billion in Q1 2022, up 32.8 percent compared to N11.1 billion in Q1 2021.

Its e-bank revenues accounted for 44 per cent of fees and commission income in Q1 2022. The bank registered N33.5 billion as fees and commission income in Q1 2022, up 16.7 per cent from N28.7 billion in Q1 2021.

FBNH
First Bank’s accounts for the first quarter of 2022 showed that revenues from electronic banking services were N12.2 billion, a decrease of 15.4 per cent from N14.4 billion in the same period in 2021.

Online banking revenues accounted for 36 per cent of fees and commission income in Q1 2022. The holding company registered N33.7 billion as fees and commission income in Q1 2022, down 0.93 per cent from N34 billion in Q1 2021.

GTCo
GTCo recorded at least e-bank revenues compared to other level 1 counterparties of N4 billion in the first quarter of 2022.
The holding company’s e-bank revenues represent an increase of 4.9 per cent from N3.9 billion registered in the same period last year.

Its e-bank revenues accounted for 18.9 per cent of fees and commission income in Q1 2022. The holding company registered N21,3 billion as fees and commission income in Q1 2022 up 21.4 per cent from N17,6 billion in Q1 2021.

FCMB
FCMB registered a 10.5 percent increase in e-bank revenues to N3.1 billion in Q1 2022, up from N2.8 billion in the same period last year.

Its e-bank revenues accounted for 41 per cent of fees and commission income in the first quarter of 2022. The bank registered N7.6 billion as fees and commission income in Q1 2022, up 34.6 per cent from N5.7 billion in Q1 2021.

Union Bank
Union Bank registered a 33.9 percent increase in its e-bank revenues to N2.1 billion in Q1 2022 from N1.5 billion in the same period last year.

Its e-bank revenues accounted for 60 per cent of fees and commission income in Q1 2022. The bank registered N3.4 billion as fees and commission income in Q1 2022 up 10.6 per cent from N3.1 billion in Q1 2021.

Sterling Bank
Sterling Bank registered a growth of 17 percent in its e-bank revenues to N1.9 billion in Q1 2022 from N1.6 billion in the corresponding period last year.

Its e-bank revenues accounted for 36.7 per cent of fees and commission income in Q1 2022. The bank registered N5.1 billion as fees and commission income in Q1 2022 up 40 per cent from N3.6 billion in Q1 2021.

Stanbic IBTC
Stanbic IBTC increased its e-banking revenues by 70.7 percent in the first three months of 2022. It registered N1.2 billion up from N745 million in the same period last year.

Online banking revenues accounted for 5.9 per cent of fees and commission income in Q1 2022. The bank registered N21,7 billion as fees and commission income in Q1 2022, up 4.3 per cent from N20.8 billion in Q1 2021.

Fidelity Bank
Fidelity Bank’s e-bank revenues increased by 37 percent in the first three months of 2022. It registered N1.23 billion as e-bank revenues up from N899 million in the same period last year.

Its e-bank revenues accounted for 17.7 per cent of fees and commission income in Q1 2022. The bank registered N6.9 billion as fees and commission income in Q1 2022 up 33 per cent from N5.2 billion in Q1 2021.

Wema Bank
Wema Bank registered a 37 percent growth in its e-bank revenues to N787 million in Q1 2022 from N574 million in the corresponding period last year.

Its e-bank revenues accounted for 19.4 per cent of fees and commission income in Q1 2022. The bank registered N4 billion as fees and commission income in Q1 2022 up 58.6 per cent from N2.6 billion in Q1 2021.

Unity Bank
Unity Bank’s e-bank revenues fell by 13 per cent to N767 million in Q1 2022, down from N882 million in the corresponding period last year.

Its e-bank revenues accounted for 51 per cent of fees and commission income in Q1 2022. The bank registered N1.5 billion as fees and commission income in Q1 2022, down 6 per cent from N1.6 billion in Q1 2021.