Zenith Bank, UBA, 11 other banks pay N413.49bn as staff salaries

Zenith Bank, UBA and 11 other banks listed on the Nigerian Stock Exchange paid a whopping N413.49 billion on their staff as salaries and allowances between January and September 2020.

Investigations show that the N413.49 billion personnel cost represents a 6.36% increase compared to N388.77 billion spent in the corresponding period of 2019, despite the economic shocks caused by the Covid-19 pandemic this year.

Of the thirteen banks under review, nine recorded positive increases in personnel expenses when compared to the corresponding period of 2019, while four recorded decline.

The thirteen banks collectively posted a profit after tax of N678.2 billion between January and September 2020, 6.9% increase compared to the previous year (634.5 billion).

FBN Holdings Plc, a holding company for First Bank of Nigeria Ltd and other subsidiaries such as FBNQuest and FBN Merchant Bank, paid a sum of N74.2 billion as personnel expenses in the review period, representing 16.9% of the N439.9 billion gross revenue generated in the same period.

Staff cost incurred by First Bank Holdings increased by 7.2% compared to N69.2 billion spent in the comparable period of 2019, and 6.4% increase compared to N69.7 billion recorded in 2018.

UBA paid a total of N66.6 billion to its workers in the review period, which represents 14.7% of the N453.7 billion generated as gross revenue. The tier one bank increased its staff expenses significantly by 20.7%, from N55.2 billion recorded in 2019 to N66.6 billion in 2020.

As of June 2020, UBA has a total employee of 11,200, 15.4% decrease when compared to 13,237 recorded as of December 2019.

Zenith, the most profitable bank on the NSE recorded a 5% increase in staff expenses from N57.1 billion in 2019 to N59.9 billion in 2020, which represents 11.8% of the total gross revenue earned in the period.

Zenith Bank increased its staff strength by 9% from 5,982 as of December 2019 to 6,521 by the end of June 2020.

Access bank spent the sum of N57.1 billion as staff costs, 4.4% increase compared to N54.7 billion recorded in the previous year.

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It also recorded a 15.3% increase in gross revenue (N592.8 billion), while in terms of profitability, grew by 15.7% from N88.4 billion in 2019 to N102.3 billion as at September 2020.

As of June 2020, Access Bank plc has a total staff strength of 5,576. This is 5% lower than 5,870 recorded as of the end of last year.

Stanbic IBTC spent a total of N31.2 billion as personnel expenses in the 9-month period of 2020, 2.2% increase compared to N30.6 billion recorded in 2019, having also increased gross revenue by 15.3% to stand at N183.3 billion.

Notably, Stanbic recorded an improved profit of N66.2 billion from N55.6 billion recorded in the same period of 2019.

Stanbic IBTC also increased its number of staff between December 2019 and June 2020 from 2,936 to 3,004 respectively.