Business

UBA, Access lead as Banks rakes in N96.48bn from e-business

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11 months ago

June 26, 2023

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UBA and Access Holdings lead in e-business income, followed by Zenith Bank, FirstBank, and GTBank as commercial banks raked in N96.48bn from electronic transactions in the first quarter of 2023.

This represents a 23.84 per cent increase from the N77.907 billion recorded in the previous quarter of 2022.

The top two earners, in terms of e-business income, were United Bank for Africa Plc (UBA) and Access Holdings Plc. UBA generated N20.929 billion while Access Holdings earned N20.664 billion.

Other top earners included Zenith Bank Plc, FirstBank Nigeria Limited, and Guaranty Trust Bank Plc.

UBA led other banks, recording a sum of N20.929 billion as e-business income during the first quarter of the year 2023, an increase of 38.5 per cent compared to N15.110 billion recorded in the first quarter of 2022.

The bank accounted for 21.69 per cent of the total e-business income realized by the eleven banks.

Access Holdings Plc, which is the largest commercial bank in the country, generated N20.664 billion from its electronic business, accounting for 21.42 per cent of the total amount generated by the twelve banks under consideration.

Its e-business income grew by 2.67 per cent quarter-on-quarter compared to N20.127 billion recorded in the previous year.

First Bank’s e-business revenue grew by 46.64 per cent in the first quarter of 2023 to stand at N17.876 billion from N12.190 billion recorded in 2022.

However, the bank’s e-business income accounted for 18.53 per cent of the e-business revenue captured.

FBN Holdings Plc’s profit before tax (PBT) for the first quarter of 2023, grew to N56.105 billion from N36.518 billion reported in 2022. This represents a 53.64 per cent increase.

The profit was boosted largely by interest income of N179.610 billion reported during the period under review as against N109.448 billion posted in 2022, which is an increase of 64.10 per cent.

Zenith Bank Plc posted an e-business income of N12.079 billion during the first quarter of 2022, a decrease of 18.28 per cent compared to N14.784 billion recorded in the corresponding period of 2022.

The most capitalized bank on the NGX, accounted for 12.52 per cent of the total e-business income by the twelve banks.

Zenith Bank Plc announced a 41 per cent growth in its gross earnings to the tune of N270 billion in the first quarter of 2023 from N191.5 billion in the first quarter of 2022.

GTCO Holdings reported an e-business income of N11.425 billion, representing an increase of 61.78 per cent, compared to N7.062 billion generated in the equivalent period the previous year.

The holding company accounted for 11.84 per cent of the total income generated by the twelve banks from electronic banking.

Others include FCMB – N6.575 billion; Union Bank – N1.967 billion; Wema Bank – N1.523 billion; Unity Bank- N1.288 billion; Stanbic IBTC – N958 million; Fidelity Bank- N955 million and Jaiz Bank – N244 million.

The growth in e-business income was driven by the increasing popularity of mobile and online banking in Nigeria. As more and more people use these channels to access financial services, banks are seeing a corresponding increase in revenue.

E-business income includes revenue from electronic channels, card products, and related services. These channels include mobile applications, USSD channels, automated teller machines (ATMs), agency banking, internet banking, and point of sales (POS) payments.

The entrance of telecoms into the financial services sector has also had a significant impact. Telecom companies have the infrastructure to reach people in rural areas, where traditional banks are often not present. This has made it possible for more people in rural areas to access financial services.