Zenith, GTCO make N283.7bn from digital banking, maintenance charges

Nigeria’s leading Tier-1 financial institutions, Zenith Bank Plc and Guaranty Trust Holding Company Plc, collectively generated N283.7 billion in income from account maintenance charges and electronic banking transactions in the 2025 financial year, underscoring the growing dominance of digital banking revenue streams in the country’s financial sector.

This is according to their audited financial statements for the year ended December 31, 2025, submitted to the Nigerian Exchange (NGX), which show a continued shift in revenue composition as customers increasingly adopt mobile banking, USSD services, card payments, and online transfers.

The figures highlight how Nigerian banks are progressively monetising digital platforms, with fee-based income becoming a critical hedge against interest rate volatility and macroeconomic uncertainty in an inflationary environment.

Account maintenance fees—largely charged on current accounts—alongside electronic banking income from ATM withdrawals, transfers, and online transactions, continue to provide steady recurring revenue for both lenders.

For Zenith Bank, account maintenance income rose to N91.95 billion in 2025, representing a 26.1 percent increase from N72.93 billion recorded in 2024. Its electronic banking revenue also grew to N89.13 billion, up 11.3 percent year-on-year, reflecting sustained expansion in digital transaction volumes.

Similarly, GTCO recorded N37.92 billion from account maintenance fees, up 16.1 percent from N32.66 billion in the previous year. Its electronic banking income climbed to N64.72 billion, a 14.4 percent increase compared to N56.56 billion in 2024.

Combined, both banks earned N129.87 billion from account maintenance charges and N153.85 billion from e-business transactions, bringing total fee-based income from these streams to N283.7 billion.

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The strong performance reflects deeper financial inclusion and increased reliance on digital payment systems across Nigeria, where customers are progressively moving away from physical branch transactions in favour of faster, technology-driven channels.

Banks have, in response, continued to invest heavily in fintech infrastructure, improving service delivery while expanding alternative revenue sources beyond traditional lending.

For Zenith Bank, the growth in fee income aligns with its broader earnings strategy anchored on strong interest income generation and efficient balance sheet management.

The bank also recorded significant gains from loans, advances, and treasury instruments, reinforcing its position among Nigeria’s most profitable lenders.

GTCO, on its part, continues to benefit from its ecosystem-driven model, which integrates core banking with payments and digital financial services. The group has emphasized sustainability in earnings through improved asset quality, strong capital buffers, and disciplined execution.

Despite challenges linked to the Central Bank of Nigeria’s forbearance directive in the first half of 2025, both Tier-1 lenders posted robust full-year results and rewarded shareholders with notable dividend payouts.

Zenith Bank reported a profit before tax of N1.26 trillion, slightly down 4.78 percent from N1.3 trillion in 2024, largely due to the impact of regulatory forbearance. Interest income surged to N3.6 trillion, while the bank proposed a total dividend of N10.00 per share.

GTCO posted a profit before tax of N1.23 trillion, with profit after tax settling at N865.75 billion. The group also reported total assets of N17.8 trillion, shareholders’ funds of N3.4 trillion, and a strong capital adequacy ratio of 43.8 percent.