Nigeria’s top banks earned N125 billion from electronic banking fees in the first three months of 2024, according to data compiled by Business Day.
This represents a 50.9 percent increase from the 82.8 billion naira earned in the same period in 2023. Banks surveyed include First Bank, United Bank for Africa, Guaranty Trust Holding Company, Access Bank and Zenith Bank.
A breakdown of the revenue generated from the e-commerce channel for these banks shows that UBA, Access Holdings and Zenith reported the highest revenues, while FBN Holdings and GTCO reported losses during the period.
According to UBA's first quarter financial results, revenue for the first quarter of 2024 was N44.3 billion, up 111.9% from N20.9 billion in the same period last year.
Also read: Amid economic headwinds, banks take lead in Nigeria's branding strategy
Access Holdings came in second in electronic business revenue for the period, earning 33.3 billion naira in the first quarter, up 61.6% from 20.6 billion naira.
Zenith Bank came in third, with the bank’s e-banking revenue growing 64% to 19.9 billion naira from 12.1 billion naira.
However, FBN Holdings’ electronic banking revenue fell to 16.9 billion naira from 17.8 billion naira, while GTCO fell to 11.2 billion naira from 11.4 billion naira.
Gloria Fadipe, a research analyst at CSL Stockbrokers, said the increase in electronic banking revenue was due to Nigerians’ increased reliance on electronic channels.
Electronic business revenue includes revenue from electronic channels, card products, and related services. These channels include mobile applications, USSD channels, automated teller machines (ATMs), agent banks, internet banking, and point of sale (POS) payments.
According to a recent report by blockchain payments platform and TC Insights Zone, the rise in mobile app remittances, online remittances, mobile money operators and instant payments is as Nigerians go further towards going cashless and relying on digital systems to function properly.
According to the Nigerian Interbank Settlement System (NIBSS), the country's electronic payment transactions increased to 237 trillion naira in the first quarter of 2024, the highest ever recorded on a quarterly basis.
