- Six Banks Realised N675.9bn Non-interest Income in 9 Months
Numerous charges imposed on banks’ customers bolstered Deposit Money Banks’ non-interest income in the first nine months of the year.
The recently released financial statements have shown that six banks generated N675.9 billion in non-interest income in the first nine months of the year, representing an increase of 12 percent when compared with the N606 billion recorded by the banks in the same period of 2018.
Non-interest income is income realised from fees like deposit and transaction fees, monthly account service charges, annual fees, etc.
The six banks analysed were United Bank for Africa Plc, Ecobank Transnational Incorporated, First Bank of Nigeria Limited, Zenith Bank reported and Stanbic IBTC Holdings.
United Bank for Africa generated the highest non-interest income in terms of percentage in the first nine months. The lender realised N107.08 billion during the period, 22 percent higher than the N87.7 billion generated in the corresponding period of 2018.
Zenith Bank declared a 21.7 percent increase in non-interest income from N128.7 billion for the first nine months of 2018 to N156.7bn non-interest income in the same period of 2019.
This was followed by Ecobank Transnational Incorporated with a 12 percent increase from N203.44 billion generated in the first nine months of 2018 to N227.2 billion in the same period of 2019.
While Union Bank of Nigeria, Stanbic IBTC Holdings and First Bank of Nigeria Limited generated N27.1 billion, N81.9 billion and N75.9 billion during the first nine months.
Dr Adesola Adeduntan, the Chief Executive Officer of First Bank and subsidiaries, said the bank’s transformation to transaction led-institution resulted in positive non-interest income.
Adeduntan explained, “This has positively impacted non-interest income even as we continue to ramp up customer acquisition and retention through improved offerings from agents, digital, trade and transaction banking products.
“We are also focused on further enhancing overall revenue generation capabilities with the aim of increasing share of the customers’ wallets.”