10 banks generate 20.4% increase in transactions commission from customers to N577.9bn 

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Ecobank Transnational Incorporated (ETI), Zenith Bank Plc and United Bank for Africa (UBA) are leading seven other banks in N577.9billion commission generated from customers’ transactions in nine months of 2019.

This is an increase of 20.4 per cent generated in nine months of 2019 compared with N479.98billion reported by these 10 banks in prior nine months of 2018.

Our correspondent gathered that banks this year have improved on commission generated from customers following improved electronic banking, among others in the sector.

Banks’ commission as gathered by our correspondent include credit related fees & commission, account maintenance charge and handling commission, commission on foreign currency denominated transactions, channels and other E-business income and commission on virtual products, among others.  The effective utilisation of fees and commission by banks continued to drive bottom-line growth.

Findings revealed that nine out of the 10 banks generated N78.9billion in maintaining customers account in nine months of 2019, an increase of 23,8 per cent compared with N63.76 billion reported in nine months of 2018.

Of the N577.9billion transactions commission from customers in nine months of 2019, ETI contributed 21.4 per cent in the period under review.

The pan-African bank reported N123.8billion transactions commission from customers in nine months of 2019, about 7.1 per cent increase over N115.6billion generated in nine months of 2018.

Following ETI comes UBA with N86.5billion transactions commission generated from customers in nine months, 25.9 per cent increase compared with N68.76billion reported in nine months of 2018 while Zenith Bank reported 26 per cent increase on transactions commission from customers in nine months to N86.4billion compared with N68.8billion reported in nine months of 2018.

The Group Managing Director/CEO, UBA Plc, Kennedy Uzoka said the bank remained committed to its vision of becoming the undisputed leading and dominant financial services institution in Africa, stressing that the pan-African bank would continue to innovate and lead in all business segments, whilst delivering top-notch operational efficiencies and best-in-class customer service.

However, UBA’s gain from account maintenance charge contributed about 31 per cent to its transactions commission in nine months of 2019.

UBA’s reported N26.7billion account maintenance fees in nine months of 2019 compared to N19.9billion reported in nine months of 2018 while Zenith bank’s account maintenance fees rose by 15 per cent to N15.8billion in nine months of 2019.

Meanwhile, FBN Holdings plc reported N76.9billion total transaction commission on customers in nine months of 2019 from N62.6billion as Access Bank plc reported N66.89billion generated from commission in nine months of 2019, an increase of 53.7 per cent from N43.5billion reported in nine months of 2018.

Stanbic IBTC Plc reported an increase of five per cent transactions in nine months to N56.5biloion compared to N53.85billion as Guaranty Trust bank plc  generated N48.37billion in nine months of 2019 compared with N40.35bn reported in nine months of 2018.

The last tier-2 banks, reported double-digit increase on transactions commission on customers with Sterling bank Plc leading the chart.

Sterling bank in the period under review reported N14billion transactions commission on customers against N10.8billion reported in prior period.

In addition,  Union Bank of Nigeria reported 16.7 per cent increase on transactions commission on customers to N12.14billion in nine months compared to N10.4billion reported in nine months of 2018 while, Fidelity bank plc reported N6.19billion transactions commission in nine months of 2019 compared to N5.16billion reported in nine months of 2018.

The President of the Bank Customers Association of Nigeria (BCAN), Dr. Uju Ogubunka had called on Central Bank of Nigeria (CBN) others to supervise banks in the country on commission imposed on their customers.

According to him, CBN needed to impose deterrent sanctions on any bank found, not just violating the regulations but more fundamentally, cheating the customers as well as putting the reputation of banks and bankers in disrepute.

“On the part of customers, there is need for them to review their accounts periodically, with a view to ensuring they are being managed in accordance with the rules/regulations of the noble banking profession. Those who may not, for various reasons, be disposed to doing this important periodic review, may consider obtaining the services of professionals for assistance,” he explained.

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