First Bank leads as banks rake N68.1bn in e-business income

By Odunewu Segun

First Bank led UBA, GT Bank, Access Bank and Zenith Bank in income generated from electronic services in the 2017 financial year with the bank accounting for N24.9 billion of the total N68.1bn raked in by the top five banks collectively known as FUGAZ.

The bank leads in terms of quantum of funds made, as well in percentage terms. It made N24.9 billion from electronic income in 2017, a 14.2% increase from the N21.8 billion it made in the prior year. This also amounts to 36.5% of the E-business income made by the top 5 banks.

First Bank not only knocked last year’s leader UBA Plc but has maintained growth in this segment for the 3rd consecutive year. It made N15.3 billion in 2015, and N21.8 billion in 2017. The bank has thus maintained its leadership position from last year.

UBA takes the second spot this year largely due to a drop in E-banking income. The bank made N20.9 billion as income in 2017 or 30.6% of the income made by the top 5 banks. This amount, however, was a 45. 4% drop from the N30.4 billion made last year.

Zenith Bank and GT Bank still played catch up despite experiencing an increase in their E-business income for 2017. Zenith Bank reported 15% increase in E-business income to N12.2 billion while GT Bank’s takings rose 11.4% to N7.4 billion. Zenith Bank currently leads all banks in terms of deposits.

Access bank rounds up the third position with earnings of N2.4 billion from electronic income in 2017. This marks a 20% increase from the N2.0 billion it made last year.

Collectively the N68.1bn raked in by the banks translates to a 4.2% drop compared to the N71.7 billion reported in 2016.

E-business income for most Nigerian banks includes fees and charges earned from card usage, mobile banking, and internet related transactions. Nigerian banks have stepped up their respective E-business products as Nigerians increasingly lean towards digital products.

Adoption of card and online products to help facilitate transactions have soared despite the capital controls introduced by the CBN over the last three years.