Banks earned ₦265bn revenue from e-banking

Banks operating in the country earned a total of ₦265.269 billion from electronic transactions in the first nine month of 2023. This figure when compared with the total sum of ₦213.204 billion recorded in 2022 from e-business during the same period in 2023 showed an increase of 24.42 per cent. Income from e-business is earned from electronic channels, card products, and related services which include mobile applications, USSD channels, automated teller machines (ATMs), agency banking, internet banking, and point of sales (POS) payments. The latest figures have indicated steady growth in e-business income for Nigerian financial institutions as banks have progressed to tap the benefits that come with the use digital banking.

This comes amid the shift from traditional banking methods to the increasing popularity of mobile and online banking in Nigeria. This has, in turn, led to a corresponding increase in banks’ revenue as more customers have turned to these channels to access financial services. According to the report, Access Holdings Plc with earnings of ₦70.350 billion, and United Bank for Africa Plc (UBA) with an e-business income of ₦61.161 billion emerged the top two earners during the period in review. Access Holdings’ income grew by 42.41% from ₦49.399 billion generated in 2022 while UBA’s profit also witnessed a growth of 33.77% compared to ₦45.720 billion recorded in the previous year. Other banks that made profits in e-business revenue include Guaranty Trust Holding Company PLC (GTCO Holdings) with an e-business income of ₦30.906 billion. This amount indicated an increase of 14.7%, compared to ₦26.945 billion generated in 2022.

First Bank of Nigeria Limited reported an e-business income of ₦48.789 billion. The bank’s e-business income grew by 18% from ₦39.977 billion recorded in 2022. Zenith Bank Plc’s income of ₦33.551 billion from e-business during the period indicated a decrease of 7.5% when compared with the sum of ₦36.069 billion recorded in the previous year. Five tier 1banks above recorded a combined sum of ₦244.757 billion and represents 92.26% of the total sum of ₦265.269 billion generated in the first nine months of 2023. Other banks earnings are; Sterling Financial Holdings – ₦6.304 billion; Wema Bank – ₦5.207 billion; Stanbic IBTC- ₦3.242 billion; Fidelity Bank- ₦2.848 billion; Unity Bank-₦2.215 billion and Jaiz Bank- ₦696 million