Zenith Bank, 10 others make N72.723bn from account maintenance charges

Zenith Bank, Access Holdings, GTCO, UBA and eight other banks listed on the floor of the Nigerian Exchange raked in a whopping N72.723 billion from account maintenance charges in the first half of 2023.

According to data extracted from the half-year financial statements of these banks, the amount represented a 7.44 per cent increase compared to the N67.690 billion recorded in the first half of 2022.

Zenith Bank sits comfortably in the top position having generated a sum of N21.02 billion from account maintenance, representing 28.91 per cent of the total income of the 11 banks.

Zenith Bank increased its account maintenance income by 6.32 per cent compared to N19.77 billion that was made in half-year 2022.

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Zenith Bank is followed by Access Holdings, Nigeria’s largest bank, recording  a 10.97 per cent year-on-year increase in its account maintenance income reaching N13.363 billion in half-year 2023.

GTCO is third, recording  a 11.08 per cent year-on-year increase in its account maintenance income in half-year 2023 to N10.481 billion from N9.44 billion recorded in half-year 2022.

Also, the holding company grew its profit after tax to N280.48 billion from last year’s figure of N77.56 billion, representing a 261.65 per cent year-on-year increase.

UBA generated a sum of N9.64 billion from account maintenance income between January and June 2023. This represents a 46.11 per cent increase compared to N6.595 billion recorded in the corresponding period of 2022.

First Bank of Nigeria’s account maintenance income declined by 43.5 per cent from N9.17 billion generated in half-year 2022. This represents 7.13 per cent of the total account maintenance income of the 11 banks.

Its profit after tax increased significantly by 231 per cent year-on-year to N187.18 billion in half year 2023 from N56.54 billion recorded in the previous year.

FCMB came sixth on the list with N3.85 billion in revenue from account maintenance, which is 16.3 per cent higher than N3.32 billion recorded in the corresponding period of 2022.

Its account maintenance income accounts for 5.3 per cent of the total N72.723 billion recorded by the 11 banks under consideration.

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Stanbic IBTC is seventh on the list, generating N2.643 billion from account maintenance charges alone.

In the first half of 2023, Stanbic IBTC recorded Profit Before Tax (PBT) of N82.99 billion, up 108 per cent from the PBT recorded in the same period for 2022.

Sterling Bank, which reported pre-tax profits N7.044 billion, taking its half-year pre-tax profits to N11.46 billion versus N8.62 billion in the same period last year, generated N2.392 billion from account maintenance charges.

Fidelity Bank which is 9th on the list generated N1.769 billion from account maintenance charges, while Wema Bank and Unity who are 10th and 11th on the list generated N1.636 billion and N745 million and N745 million respectively.

Nigerian banks are allowed to charge their customers a “negotiable” N1 per mille.