An analysis of the financial performance of 11 Nigerian banks for the first nine months of 2024 reveals that these institutions collectively spent an impressive ₦1.08 trillion on staff salaries and wages. This represents a 91% increase compared to the ₦564.7 billion recorded in the same period in 2023. The significant rise in employee compensation aligns with the banks’ record-breaking profits during the review period.
Access Bank Leads in Wage Costs
Access Holdings Plc, the parent company of Access Bank, emerged as the leader in staff salary expenditures, spending ₦268 billion from January to September 2024. This marked a substantial 140% increase from the ₦111.8 billion recorded during the same period in 2023. The bank also reported a 114.5% rise in gross earnings to ₦3.4 trillion and an 83% increase in net profit to ₦457.7 billion.
Top Performers in Salary and Profit Growth
- UBA: Ranked second in staff salaries, UBA spent ₦216 billion in wages, a 102% increase from ₦106.8 billion in 2023. The bank’s net profit grew by 17% to ₦525.3 billion.
- First Bank (First HoldCo): The institution recorded an 89% rise in staff salaries to ₦210.4 billion while achieving a 126% surge in net profit to ₦533.9 billion.
- Zenith Bank: This bank spent ₦150.7 billion on wages, reflecting a 70% growth from ₦88.4 billion in 2023. Its profits climbed 91% to ₦827.3 billion.
GTBank: Highest Profit, Lowest Salaries
Interestingly, Guaranty Trust Bank (GTBank) reported the highest profit among Tier-1 banks, earning ₦1.085 trillion, a 195% annual increase from ₦367.4 billion in 2023. Despite this, its wage bill of ₦68.8 billion was the lowest among the major banks, though it still reflected an 89% growth compared to the previous year.
Other Highlights
- Stanbic IBTC: Salaries grew by 39% to ₦63.7 billion, with profits rising 67% to ₦182.9 billion.
- Fidelity Bank: Spent ₦42.4 billion on salaries, marking a 42% increase, while its profit surged by 145% to ₦224.6 billion.
- Wema Bank: Salaries rose by 124% to ₦30.5 billion, and profits climbed 174% to ₦52.7 billion.
- Sterling Bank: Reported a 45% increase in wages, spending ₦21 billion, with profits growing 66.5% to ₦27.4 billion.
Industry Trends
The banking sector’s investment in human capital underscores the critical role of employees in driving profitability. This growth in staff compensation coincides with increased operational efficiencies, technology adoption, and revenue diversification. As these banks expand their portfolios and services, staff wages are expected to remain a significant component of their expenditures.
With Access Bank leading the charge in both profitability and staff remuneration, the financial industry continues to demonstrate resilience and growth amidst broader economic challenges.
