In the first three months of 2022, Nigerian Exchange-listed banks collected a total of N36.04 billion in account maintenance fees. According to the quarterly financial statements of listed commercial banks in Nigeria's stock market, this is the case.
In Nigeria, Zenith Bank, Access Bank, and GTB had the highest current account maintenance income throughout the period under consideration. Q1 2022 account maintenance expenses yielded a 17.5 per cent rise over the N30.67 billion from last year.
Fees for current accounts are only levied on transactions initiated by the client, such as payments to third parties or transfers/lodgements to a bank account held by the customer elsewhere.
Even while account maintenance fees only make up a small percentage of a bank's total revenue, they are an essential source of cash for the institution. Nigerian banks are permitted to charge their clients a "negotiable" N1 per mille under the CBN's guideline on bank charges.
This implies that banks can levy a fee of N1 for every N1000 in debit account transactions. COT (Commission on Turnover) is a fee that banks charge customers when they remove money from their accounts.
In the first quarter of 2022, Nigerian commercial banks were ranked based on their account maintenance earnings.
Number 5: UBA – N3.92 trillion
Account maintenance income from United Bank for Africa climbed 24.5 per cent year-over-year to N3.92 billion in the first quarter of 2019.
Account maintenance income from the African pan bank accounted for 10.9 per cent of the total N36.04 billion recorded by the 12 banks in the study group. UBA's profit after tax increased by 8.8% yearly to N41.49 billion over the period under consideration.
Fourth on the list: First Bank – N4.14 billion
With an increase of 2.2% from N4.05 billion in Q1 2021 to N4.14 billion in Q1 2022, First Bank of Nigeria's account maintenance income has increased modestly. It accounted for 11.5% of the industry's overall revenue from account maintenance.
From N15.59 billion to N32.4 billion in Q1 2022, First Bank's earnings after tax climbed by 107.7 per cent year-on-year.
No. 3: GT Bank – N5,17 billion
Between January and March of 2022, GT Bank earned a total of N5.17 billion in account maintenance income. An increase of 23.8% above the N4.18 billion registered during the same time in 2021.
In contrast, its net profit fell by 5.1 per cent to N43.21 billion from N45.55 billion in the same period of the previous year.
#2: Access Bank – 6.04 billion naira
Access Bank, Nigeria's largest financial institution by customer base and total asset value, saw its account maintenance income rise by 16.2 per cent year-on-year to N6.04 billion from N5.2 billion in the first quarter of 2022.
Similar to the previous year, the newly reorganized bank saw a 9.2 per cent year-on-year growth in earnings after tax to N57.39 billion from N52.55 billion.
Zenith Bank - 9.27 billion Nigerian Naira
Zenith Bank topped the list with a total of N9.27 billion in account maintenance revenue, accounting for 25.7 per cent of the 12 banks' total income. Compared to the N7.88 billion generated in Q1 2021, Zenith Bank's account maintenance income grew by 17.6 per cent.
Like the tier-1 powerhouse, the N58.19 billion profit after tax reported in the similar 2021 increased by 9.7 per cent yearly to N58.19 billion. Zenith Bank's net profit was the highest in the sector, accounting for 21% of the total N275.7 billion profit during the review period.
Other banks on the list are:
* Unity Bank – N1.67 billion
* FCMB – N1.53 billion
* Fidelity Bank – N1.23 billion
* Stanbic IBTC – N927 million
* Sterling Bank – N911 million