with the highest account maintenance income in first quarter 2022. 

Account maintenance charges generated N70.47 billion in revenue for Nigerian banks in the first half of the year, a 19.4% increase from N59.01 billion in the same period in 2021.

This is according to data derived from the quarterly financial statements of Nigerian stock exchange-listed commercial banks. The top earners were the top tier-1 banks, also known as FUGAZ (First Bank, UBA, GTCO, Access, and Zenith Bank). They topped the list of Nigerian banks with the highest income from current account maintenance during the review period.

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The account maintenance fee, according to the Central Bank of Nigeria, is charged on current accounts only for customer-induced debit transactions to third parties and debit transfers/lodges to the customer’s account in another bank.

Account maintenance charges, while small in comparison to other revenue streams, account for a significant portion of a bank’s non-interest income. According to the CBN’s directive on bank charges, Nigerian banks may charge their customers a “negotiable” N1 per mille.

 

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This means that banks may charge N1 for every N1000 in debit transactions on current accounts. Account maintenance fees are levied by banks in the form of COT (Commission on Turnover), which is a fee levied on customer withdrawals.

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The thirteen NGX-listed banks reported a profit after tax of N500.9 billion in the first half of the year, up 13% from N443.17 billion in H1 2021. This is on track to surpass the N1 trillion record profit posted by banks in the fiscal year 2021.

The Nigerian commercial banks are ranked below based on their account maintenance earnings in the first quarter of 2022.

5: UBA – N6.59 billion

United Bank for Africa ranked fifth on the list, with N6.59 billion in revenue from account maintenance, a 21.5% increase over the N5.43 billion recorded in the same period in 2021.

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The account maintenance income of the pan-African bank accounted for 9.4% of the total N70.47 billion recorded by the 13 banks under consideration. In terms of profit after tax, UBA increased its profit after tax by 16.1% year on year to N70.33 billion during the review period.


4: FirstBank – N9.11 billion

FirstBank increased its account maintenance income by 15%, from N7.93 billion in H1 2021 to N9.11 billion in H1 2022. It accounted for 12.9% of the industry’s total account maintenance income.

 

First Bank’s profit after tax increased by 48.6% year on year to N56.6 billion in the first half of 2022, up from N38.09 billion the previous year.


3: GT Bank – N9.44 billion

Between January and June 2022, GT Bank earned N9.44 billion in account maintenance fees. This is a 20.9% increase over the N7.8 billion recorded in the same period in 2021, accounting for 13.4% of total bank inflows.

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However, its net profit fell by 2.3% from N79.4 billion recorded during the same period the previous year to N77.56 billion.


2: Access Bank – N12.04 billion

With a total asset value of N13.2 trillion, Access Bank, the country’s largest financial institution by customer base and total asset value, increased its account maintenance income by 10.9% year on year in H1 2022 to N12.04 billion from N10.86 billion.

Meanwhile, its profit after tax increased by only 2.1% to N88.74 billion from N86.94 billion in the same period in 2021.


1: Zenith Bank – N19.77 billion

Zenith Bank comfortably holds the top spot, having generated N19.77 billion from account maintenance, accounting for 28.1% of the total income generated by the 13 banks. Zenith Bank increased its account maintenance income by 24.3% from N15.9 billion in H1 2021.

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Similarly, the tier-1 behemoth increased its profit after tax by 5% year on year to N111.4 billion, up from N106.1 billion in the same period in 2021. In comparison to other listed banks, Zenith Bank had the highest net profit, accounting for 22% of the industry’s total N501.1 billion in the period under review.


Other Banks are: 

  • FCMB – N3.32 billion
  • Stanbic IBTC – N2.37 billion
  • Fidelity Bank – N2.34 billion
  • Sterling Bank – N1.85 billion
  • Union Bank – N1.4 billion

Thanks for reading Top 10 banks in Nigeria with highest accounts. 

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