Top 10 Banks In Nigeria By e-Business Income In Half Year 2022

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As Nigeria continues to leverage fintech, quoted banks on the Nigerian Exchange (NGX) raked in N158.165 billion from electronic business during the half year of 2022, growing the top line by 16.48% compared to N135.789 billion recorded in the corresponding period of the previous year.

E-business income includes revenue from electronic channels, card products, and related services.

Consequently, the revenue is generated through transactions like mobile applications, USSD channels, automated teller machines (ATM), agency banking, internet banking, and point of sales (POS) payments.

The financial services landscape is rapidly changing as a result of the disruption and innovation introduced by fintech; anyone with an Internet-enabled phone can access a plethora of financial services, from payments to insurance, all at the tap of a button.

This means that a significant number of Nigerians can participate in the digital economy. Businesses and opportunities that a few years ago would not have been feasible have been born, thanks to the rise of fintech adoption.

All of these point to significant growth in the volume of transactions within the financial services sector, as well as the consequent gains in economic activities.

Furthermore, the entrance of telcos into the financial services sector means that they can take important financial services the last mile simply by riding on their existing infrastructure, especially in rural areas. This has also significantly changed the financial services landscape, along with the many other benefits such as the many jobs being created.

Analysis of data collated from the financial statements of the listed banks shows that some tier-1 banks such as Access Bank, UBA, and Zenith Bank led the list of banks with the highest e-business income in H1 2022.

These banks recorded a profit after tax of N500.9 billion in the first half of the year, an increase of 13% from the N443.17 billion posted in H1 2021.

Top 10 Banks In Nigeria By e-Business Income In Half Year 2022

It is worth noting that this analysis excludes the cost of earning the income, and would have been different if expenses incurred in earning the income were net off.

GTCO Holdings – N10.977 billion

  • GTCO Holdings reported an e-business income of N10.977 billion, representing an increase of 4.57%, compared to N10.497 billion generated in the equivalent period the previous year.
  • The holding company accounted for 6.95% of the total income generated by the thirteen banks from electronic banking.
  • Guaranty Trust Holding Co Plc’s half-year 2022 financial result showed a pretax profit of N103.249 billion for its 2022 half-year results, representing a growth of 10.95% year on year.
  • In its unaudited half-year financials submitted to the Nigeria Exchange Limited, the Bank also made significant improvements across key performance indicators.
  • The result is on the back of an inflationary year, where businesses and their customers have had to deal with the rising cost of goods and services.
  • Analysis of the results indicates that the bank’s gross earnings rose by 15% to N239.288 billion from N207.914 billion reported in 2021, driven by a 13% growth in net-interest income.
  • Profit after tax stood at N77.557 billion from N79.41`4 billion posted in 2021, representing a marginal drop of 2.34%.

Zenith Bank – N24.635 billion

  • Zenith Bank Plc posted an e-business income of N24.635 billion in the second quarter of 2022, an increase of 44.50% compared to N17.048 billion recorded in the corresponding period of 2021.
  • The most capitalized bank on the NGX, accounted for 15.57% of the total e-business income by the thirteen banks.
  • Zenith Bank Plc posted a profit after tax of N111 billion for the first six months of 2022, a 5% increase from the amount in first half of 2021.
  • The financial report by the company shows a rise in profit follows an increase in interest income recorded for the period of H1 2022 compared to the amount in the previous year.
  • The company increased interest income by a whopping N18.5% to close at N242 billion in the first half of the year. This was triggered by loans and advances to customers which saw a record of N163 billion as well as government and other bonds at N51 billion among others.
  • Interest and similar expenses also rose to N56 billion from N43 billion causing the net interest income to stand an N185 billion.
  • Other operating income saw a negative N655 million in H1 2021 influenced majorly by foreign currency revaluation loss at N6.2 billion. Notably, the foreign currency revaluation loss represents the loss from the revaluation of foreign currency-denominated assets and liabilities held in the non-trading books.

FBNH– N25.537 billion

  • First Bank e-business revenue declined by 11.37% in the half year of 2022 to stand at N25.537 billion from N28.816 billion recorded in H1 2021.
  • However, the bank’s e-business income accounted for 16.14% of the e- business revenue captured.
  • FBN Holdings Plc posted gross earnings of N338.5 billion for its 2022 half-year results, representing a growth of 22.6% y-o-y from  1 billion reported in 2021..
  • The group reported Net interest income of N152.9 billion, up 49.3% y-o-y from N102.4 billion in 2021 while Non-interest income stood at  8 billion, down 2.4% y-o-y from  111.5 billion in 2021.
  • It reported profit before tax of N60.0 billion, up 40.0% y-o-y from 9 billion in 2021. Its profit after tax stood at N53.3 billion, up 42.3% y-o-y from  N37.4 billion posted in 2021.

UBA – N36.324 billion

  • The pan African bank recorded a sum of N36.324 billion as e-business income in the second quarter of 2022, an increase of 22.70% compared to N29.603 billion recorded in H1 2021.
  • The bank accounted for 22.96 % of the total e-business income realized by the thirteen banks.
  • United Bank for Africa Plc’s interim consolidated and separate financial statement for the period ended June 2022 showed that the bank raised its profit in the first half of the year by 16% to record N70.33 billion from the N60.58 billion in the first half of last year.
  • During the period, the bank increased interest income by 15.6% to stand at N257.4 billion against N222.6 billion in the same period of 2021 as investment securities in treasury bills, bonds and others rose.
  • The interest expenses was valued at N79.9 billion in the first half of 2022 from the N74.6 billion in the first half of 2021 as the banks recorded more deposits from customers during the period while the net interest income stood at N177.46 billion.
  • Fees and commission income grew to N96.4 billion in H1 2022 from N74.1 billion in H1 2021 on the back of rise in credit-related fees and income, electronic banking income, and trade transaction income amongst others.

Access Holdings – N38.861 billion

  • Access Holdings Plc, which is the largest commercial bank in the country, topped the list having generated N38.861 billion from its electronic business, accounting for 24.57% of the total amount generated by thirteen banks under consideration.
  • Its e-business income increased by 29.92% year-on-year compared to N29.912 billion recorded in the previous year. Access Holdings also led the list of Q1’22 with N20.13 billion from its electronic business, accounting for 26.1% of the total amount generated by thirteen banks under consideration during the period.
  • Access Holdings Plc’s half year 2022 financial result showed gross earnings of N591.803 billion for its 2022 half-year results, representing a growth of 31.42% year-on-year.
  • In its unaudited half-year financials submitted to the Nigeria Exchange Limited, the Bank also made significant improvements across key performance indicators.
  • Analysis of the results indicates that the bank’s profit before tax rose marginally by 0.42% to N97.791 billion from N97.379 billion reported in 2021.
  • Profit after tax stood at N88.739 billion from N86.819 billion posted in 2021, representing a marginal gain of 2.21%.
  • Interest income calculated using the effective interest rate rose by 22.51% to N342.530 billion from N279.594 billion recorded in the half year of 2021.

Others include

  • FCMB – N6.700 billion
  • Sterling Bank – N3.923 billion
  • Union Bank – N3.871 billion
  • Stanbic IBTC – N2.443 billion
  • Wema Bank – N1.653 billion

Source: Nairametrics