A total of 12 banks generated N1.86trillion as fees and commission income from current and saving accounts of customers between 2018 and 2020, data gathered by THIDAY has revealed.
Analysis of the banks’ numbers revealed that these 12 of them generated N684.03 billion from fees and commission income in 2020 as against N630.4billion and N550.33billion between 2019 and 2018.
Banks generate the fees through account maintenance fee, electronic transfers, commission on turnover, credit related fees, among others.
Further analysis showed that United Bank for Africa Plc, followed by Zenith bank Plc led the others in fees and commission generated in the last three years, while Unity Bank Plc recorded the lowest fees and commission in the period under review.
UBA Plc in the last three years generated N331.5billion from fees and commission income, while Zenith Bank Plcc accounted for N310.04billion fees and commission between 2018 and 2020.
Others are; Access Bank Plc N270.64billion, Stanbic IBTC Holdings Plc N221.4billion, Guaranty Trust Holdings Plc N167.97billion, Fidelity Bank Plc N65.5billion, Sterling bank Plc N65.53billion, FCMB Group Plc N58.18billion, Union Bank Plc N42.6billion, Wema Bank Plc N22.93billion and Unity Bank Plc N12.5billion.
Meanwhile, analysts believe banks’ may not be able to continue to rake in much profits from such fees following the licenses granted by the Central Bank of Nigeria (CBN) to MTN Nigeria and Airtel Africa to operate a Payment Service Bank (PSP).
The development, they stated, has renewed mobile money transactions competition between financial instructions operating in Nigeria.