Nine Nigerian banks have reported a combined e-business income of N74 billion in the first quarter of 2023, demonstrating the growing reliance on digital channels to generate revenue. Tier-1 banks, including UBA, Access Bank, and Zenith Bank, emerged as the top earners in this sector. This blog post explores the increasing emphasis on digital channels by Nigerian banks, driven by initiatives from the Central Bank of Nigeria (CBN) and analyzes the performance of each bank in the e-business space.
The Rise of Digital Channels in Nigerian Banking
To diversify their revenue streams, banks in Nigeria have increasingly focused on leveraging digital channels such as mobile applications, USSD channels, and online banking. These channels cater to a broad range of Nigerian customers, facilitating financial transactions and promoting financial inclusion. The CBN’s initiatives, such as the Bank Verification Number (BVN), point of sale (POS) systems, and the redesign of the national currency, have played a significant role in supporting these efforts.
Impressive Q1 E-Business Performance
The surveyed banks, including UBA, Access Bank, Zenith Bank, GTCO, FCMB, Union Bank, Wema Bank, Stanbic IBTC Holdings, and Fidelity Bank, collectively recorded an electronic banking income of N74.22 billion in Q1 2023, reflecting a 15.3% increase compared to N64.35 billion in Q1 2022. This growth can be attributed to the CBN’s initiatives, particularly the redesign of the naira bills, which has led to a reduction in physical currency circulation.
Bank Analysis
1. United Bank for Africa (UBA)
UBA’s e-banking income in Q1 2023 amounted to N20.93 billion, a significant increase of 38.5% compared to Q1 2022. The bank also experienced growth in account maintenance fees and fees and commission income.
2. Access Holdings
Access Holdings recorded e-business income of N20.66 billion in Q1 2023, a modest increase of 2.6% compared to Q1 2022. Account maintenance charges and fees and commission income also saw slight growth.
3. Zenith Bank
Zenith Bank’s fees on electronic products decreased by 18.3% to N12.08 billion in Q1 2023. However, the bank witnessed growth in account maintenance fees and net income on fees and commission.
4. Guaranty Trust Holding Company (GTCO)
GTCO experienced a significant increase in e-business income, reaching N11.42 billion in Q1 2023, reflecting a growth rate of 61.8%. The bank also observed growth in account maintenance charges and fee and commission income.
5. First City Monument Bank (FCMB)
FCMB’s electronic fees and commissions rose to N3.73 billion in Q1 2023, an 18.8% increase compared to Q1 2022. Account maintenance and gross fee and commission income also witnessed notable growth.
6. Union Bank
Union Bank’s e-business fee income grew by 4% to N1.97 billion in Q1 2023, with account maintenance charges and fees and commission income showing mixed results.
7. Wema Bank
Wema Bank’s fees on electronic products increased by 93% to N1.52 billion in Q1 2023. The bank also observed growth in account maintenance fees and total fee and commission income.
8. Stanbic IBTC Holdings
Stanbic IBTC Holdings reported an electronic banking revenue of N958 million in Q1 2023, representing a 66.9% increase
