Banking Nigeria

Nigerian banks record N675.9bn non-interest income in 9 months

November 8, 20191.5K views0 comments

Reaping from a successful strategy six Nigerian banks generated the sum of N675.9bn as non-interest income in the first nine months of the year, an increase of about 12 per cent from N606 billion generated by the banks in the same period last year.
Nigeria banks record N675.9bn non-interest income in 9 months

Non-interest income is a bank’s income derived primarily from fees including deposit and transaction fees, annual fees, monthly account service charges, inactivity fees, cheque deposit slip fees, and so on.

Banks in Nigeria leverage non-interest income to boost bottom-line performance given the macroeconomic challenges facing the nation.

Of the six banks , United Bank for Africa Plc generated the highest in terms of percentage increase while Ecobank Transnational Incorporated hit record high in terms of value generated in the period under review.

From the bank’s unaudited financial statements for nine months ended September 30, 2019, UBA generated N107.08bn in non-interest income, an increase of 22 per cent from N87.7bn in the similar period of 2018.

ETI reported N227.2bn non-interest income in the first nine months of 2019, up from N203.44bn reported in the same period of 2018, representing an increase of 12 per cent.

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kennedy Uzoka,  the group managing director/CEO, UBA,  said the pan-African bank achieved a 22.1 per cent growth in non-interest income, driven largely by increased penetration of digital banking offerings, credit expansion, remittances and other lifestyle transactional services.

Uzoka said, “UBA remains committed to its vision of becoming the undisputed leading and dominant financial services institution in Africa.

“We will continue to innovate and lead in all our business segments, whilst delivering top-notch operational efficiencies and best-in-class customer service.”

However, First Bank of Nigeria Limited   reported an increase of 0.5 per cent in its non-interest income to N75.9bn in nine months ended September 30, 2019 from N75.5bn in nine months ended September 30, 2018.

Adesola Adeduntan,, the chief executive officer of First Bank and subsidiaries, in a statement, had explained that the bank remained focused on transforming its business to a leading transaction-led institution.

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.”

Zenith Bank reported N156.7bn non-interest income in the nine months of 2019, 21.7 per cent increase over N128.7bn in the similar period of 2018.

Stanbic IBTC Holdings’ non-interest income grew by 2.5 per cent to N81.9bn from January to September 2019, up from N79.9bn reported in the same period of 2018.

On the other hand, Union Bank of Nigeria’s non-interest income dropped by 11.7 per cent to N27.1bn in the same period of 2019 from N30.7bn reported in the first nine months of 2018.

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