Wednesday, June 16, 2021

    First Bank leads as Nigerian lenders rakes in N68.1 billion in E-Business Income for FY’17

    Must read

    Naija247news, Nigeria
    Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

    Nigeria’s First Bank leads other other commercial lenders as the electronic income in the 2017 financial year hits total of N68.1 billion. Which includes 5 biggest banks First Bank, UBA, GT Bank, Access Bank and Zenith Bank

    This translates to a 4.2% drop compared to the or N71.7 billion reported in 2016. Our report in 2016, stated bank’s e-business income as N95.8 billion. However, some of the banks restated or reclassified how e-business income is reported in their 2016 results.

    Tier 2 banks such as Fidelity Bank, Stanbic IBTC reported N1.76 billion and N1.22 billion respectively in 2017 compared to N6.6 billion and N1.2 billion respectively in 2016. Diamond Bank is yet to release its results.

    Most of the other Tier 2 banks on our list did not separately disclose earnings from electronic banking.

    E-business income for most Nigerian banks includes fees and charges earned from card usage, mobile banking, and internet related transactions. Nigerian banks have stepped up their respective E-business products as Nigerians increasingly lean towards digital products. Adoption of card and online products to help facilitate transactions have soared despite the capital controls introduced by the CBN over the last three years.

    First bank leads the pack
    First Bank leads in terms of quantum of funds made, as well in percentage terms. The bank made N24.9 billion from electronic income in 2017, a 14.2% increase from the N21.8 billion it made in the prior year. This also amounts to 36.5% of the E-business income made by the top 5 banks.

    The bank not only knocked last year’s leader UBA Plc but has maintained growth in this segment for the 3rd consecutive year. It made N15.3 billion in 2015, and N21.8 billion in 2017.

    UBA falls to Number 2
    UBA takes the second spot this year largely due to a drop in E-banking income. The bank made N20.9 billion as income in 2017 or 30.6% of the income made by the top 5 banks. This amount, however, was a 45. 4% drop from the N30.4 billion made last year.

    Zenith and GT Bank play catch-up
    Zenith Bank and GT Bank still played catch up despite experiencing an increase in their E-business income for 2017. Zenith Bank reported 15% increase in E-business income to N12.2 billion while GT Bank’s takings rose 11.4% to N7.4 billion. Zenith Bank currently leads all banks in terms of deposits.

    Access bank rounds up the list
    Access bank rounds up the third position with earnings of N2.4 billion from electronic income in 2017. This marks a 20% increase from the N2.0 billion it made last year.

    E-business income will play an increasingly important role in the months going forward as interest rates which were a key earnings driver last year taper downwards.

    Data from the National Bureau of Statistics (NBS) show 457 million transactions valued at N32.4 trillion took place in the first quarter of 2018 compared to 313 million transactions valued at N24 trillion in the corresponding period of last year.

    - Advertisement -spot_img

    More articles

    - Advertisement -spot_img

    Latest article

    WP to LinkedIn Auto Publish Powered By :