Nigerian Banks earn N521.8bn from E-banking, card fees in nine months

Eight Nigerian Exchange-listed banking groups generated a combined N521.79 billion from electronic banking and card-related fees in the first nine months of 2026, representing an 8.1 per cent increase from N482.48 billion recorded in the corresponding period of 2025.

An analysis of the nine-month financial statements of Access Holdings, Zenith Bank, First HoldCo, Guaranty Trust Holding Company (GTCO), Wema Bank, Sterling Financial Holdings, Stanbic IBTC Holdings and Ecobank Transnational Incorporated showed that five banking groups recorded growth, while three reported declines.

The increase translated into additional revenue of N39.32 billion from electronic transactions, card management and other digital banking services.

Access Holdings led the industry with N172.92 billion, accounting for 33.1 per cent of the combined revenue generated by the eight groups. Its channels and other e-business income rose by 14.3 per cent from N151.35 billion recorded in 9M 2025.

Ecobank ranked second with N115.93 billion in card management fees, although the figure represented a 7.3 per cent decline from N125.11 billion in the previous year.

Zenith Bank generated N77.17 billion from electronic product fees, representing a 30.7 per cent increase from N59.06 billion, while First HoldCo recorded N73.16 billion, up 6.3 per cent from the corresponding period.

GTCO followed with N60.81 billion in e-business income, representing a 40.6 per cent increase from N43.25 billion, the strongest percentage growth among the eight banking groups.

Other contributors included Wema Bank with N10.54 billion, Sterling Financial Holdings with N8.26 billion and Stanbic IBTC Holdings with N3.01 billion.

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Excluding Ecobank, whose disclosure covers card management fees across its multinational operations, the remaining seven banking groups generated N405.86 billion, representing a 13.6 per cent increase from N357.37 billion.

Access Holdings recorded the largest absolute increase of N21.57 billion, followed by Zenith Bank with N18.11 billion and GTCO with N17.56 billion.

However, the growth was not uniform across the industry, as Wema Bank recorded the steepest decline in the selected revenue category.

Its electronic-product fees dropped by 56.8 per cent to N10.54 billion from N24.42 billion, despite a 28.4 per cent increase in total fee and commission income to N55.14 billion.

Stanbic IBTC’s electronic banking income also declined by 12.6 per cent to N3.01 billion, although its net fee and commission revenue increased by 26.5 per cent to N218.30 billion.

Sterling Financial Holdings recorded a 17.2 per cent increase in e-business commissions and fees to N8.26 billion.

The contrasting performances indicate that growth in overall fee income does not necessarily translate into higher electronic banking revenue, as lenders increasingly rely on different combinations of transaction charges, account maintenance and other non-interest income streams.

The growing contribution of digital banking services also reflects lenders’ efforts to diversify earnings beyond traditional lending activities.

Access Holdings’ Group Chief Executive Officer, Innocent Ike, identified growth in net fee and commission income as one of the factors supporting the group’s core earnings.

Its financial statements showed that e-banking expenses declined to N98.49 billion from N110.57 billion, even as channels and other e-business income increased by 14.3 per cent.

First HoldCo’s management also highlighted the contribution of transaction-led revenue to its earnings, although its electronic banking fees recorded a more modest growth of 6.3 per cent.

The performance came against the backdrop of improved profitability across the banking sector. The eight groups recorded a combined 14.2 per cent increase in profit before tax to N5.29 trillion, supported significantly by a 48.1 per cent reduction in credit impairment charges.

The figures underscore the growing importance of electronic banking and card-related services to Nigerian lenders, while highlighting differences in their ability to convert digital transactions into sustainable fee income.