Growth in the total earnings by 10 of Nigeria’s major banks in the first quarter of 2022 (Q1, 2022) was boosted by a significant rise in their non-interest income, an analysis of the unaudited results has shown.
An analysis of the first quarter performance of some of the major deposit money banks (DMBs) in Nigeria based on their reported earnings from non-interest-bearing income streams, as published in their unaudited first-quarter financial statements filed to the Nigerian Exchange (NGX), showed that 10 banks generated N275.83 billion in credit-related fees and commissions, account maintenance charge and handling commission, electronic banking income, commission on foreign exchange deals, among others. Data of the banks’ unaudited results and accounts for the period ended March 31, 2022, also shows that there was a 25.2 per cent year on year increase in the number from N220.38 billion generated by these banks in the corresponding period of last year.
The banks include Zenith Bank, Ecobank Transnational, Access Holdings, United Bank for Africa (UBA), Stanbic IBTC Bank, Fidelity Bank, Sterling Bank, Guaranty Trust Holding Company (GTCO), Union Bank of Nigeria and First City Monument Bank (FCMB).
In line with expectation, the growth in fee and commission income weighed on the banks’ non-interest income (NII) for the reported period. The key contributing factors, as seen from the published Q1 financial statement on the NGX, were commissions on foreign exchange deals, account maintenance charges and handling commission, electronic banking income and other credit-related fees and commissions