Nigerian banks reap N192 billion in H1 2023 from electronic ventures

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Nigerian banks reap N192 billion in H1 2023 from electronic ventures
Nigerian banks reap N192 billion in H1 2023 from electronic ventures

In the first half of 2023, Nigerian banks witnessed a significant surge in e-business income, amassing a substantial N192.010 billion in revenue from electronic ventures. This marks an impressive 20.32% increase from the N159.577 billion recorded in H1 2022.

UBA and Access Holdings Lead E-Business Income

United Bank for Africa Plc (UBA) and Access Holdings Plc emerged as the top performers in e-business income. UBA reported N51.076 billion, while Access Holdings garnered N43.948 billion.

Top Banks See Strong Pre-Tax Profits

Simultaneously, Nigerian banks reported robust pre-tax profits of N1.665 trillion in H1 2023, a remarkable 132% increase from the N716.943 billion recorded in the corresponding period of 2022.

Fintech Revolution Drives E-Business Income Growth

This significant expansion in e-business income underscores the increasing adoption of fintech solutions in Nigeria, despite challenges posed by the Central Bank of Nigeria’s currency redesign and cash swap in Q1 2023.

Fintech Reshaping Nigeria’s Financial Landscape

Fintech innovations are transforming the operational landscape of banks, driving non-interest income growth. This trend is indicative of fintech’s pivotal role in Nigeria’s financial sector.

Tier-1 Banks Dominate E-Business Income

Tier-1 banks, including UBA, Access Bank, First Bank, GT Bank, and Zenith Bank, dominated e-business income in H1 2023, collectively earning N172.524 billion, constituting 89.85% of the total earnings.

Fintech Boosts Financial Inclusion and Transaction Volumes

Fintech’s rise is significantly expanding financial inclusion, bridging the gap for previously unbanked or underbanked populations and increasing transaction volumes within Nigeria’s financial ecosystem.

Telcos’ Entry Amplifies Fintech Impact

Telecom giants’ foray into financial services is magnifying this impact, particularly in rural areas underserved by traditional banks.

Banks Invest in Fintech Infrastructure

Banks are increasing investments in fintech infrastructure to cater to the growing demand for digital financial services, enhancing accessibility, convenience, and affordability.

E-Business Income Sources

E-business income comprises revenue from electronic channels, card products, and related services, including mobile apps, USSD channels, ATMs, agency banking, internet banking, and POS payments.

Key Banks and Their E-Business Income

  • GTCO Holdings: N21.216 billion
  • Zenith Bank: N22.270 billion
  • First Bank: N34.014 billion
  • Access Holdings: N43.948 billion
  • UBA: N51.076 billion

Outstanding Performance of Top Banks

Tier-1 banks collectively reported N172.524 billion in e-business income, representing 89.85% of the total H1 2023 earnings. These banks also accounted for 66% of the total pretax profits among the banks.

Other Banks’ E-Business Income

  • FCMB: N7.400 billion
  • Sterling Financial Holdings: N4.485 billion
  • Wema Bank: N3.136 billion
  • Stanbic IBTC: N2.144 billion
  • Fidelity Bank: N1.853 billion
  • Jaiz Bank: N468 million

This upswing in e-business income is indicative of the banking sector’s adaptability to evolving customer preferences and its readiness to thrive in the digital economy.