Nigerian Banks Record N192bn From Digital Transactions

As Nigerian banks continue to endorse digitalization, there has been a shift in revenue. In the first half of 2023, the total revenue generated from electronic transactions was N192.010 billion. These statistics show that there was an increase from the last record, which showed N159.577 billion generated in the first half of 2022.

Despite the increase in e-business revenue, Nigerian banks also recorded an excellent margin in pre-tax earnings, which amounted to N1.665 trillion in the first half of 2023. This showed that pre-tax increased by 132% compared to the pre-tax earnings recorded in the same period last year.

Nigerian banks' e-business revenue is obtained as a result of card products, electronic channels, and other services such as USSD channels, mobile apps, ATMs, internet banking, agency banking, and POS payments. This shows that Nigerian banks are making effective use of digitalization, thereby expanding their digital economy.

A Look at How Top Nigerian Bank’s E-Business Performed in H1 2023

In H1 2023, top-tier banks, FUGAZ, which comprises First Bank of Nigeria, United Bank of Africa, Guarantee Trust Bank, Access Bank, and Zenith Bank, contributed massively to the e-business revenue. In total, FUGAZ's revenue amounted to N172.524 billion, which accounts for 89.85% of the total revenue of N192.010 billion. Last year, around this time, e-business revenue was N143.931 in H1 2022.

Also, FUGAZ recorded an astonishing N1.104 trillion in H1 2023, which shows a 78.64% increase from H1 2022, which was N618.557 billion. This shows that FUGAZ contributed 66% of the total pre-tax amongst Nigerian banks.

Nigerian Banks’ E-Business Ranking From Low to High

GTCO Holdings – N21.216 billion

GTCO Holdings recorded an e-business income of N21.216 billion in H1 2023, which showed an increase from H1 2022, which was N18.574 billion in total revenue. Also, the bank reported a profit before tax of N327.4 billion, which showed a 217.1% increase over the previous year. 

Zenith Bank – N22.270 billion

Zenith Bank Plc recorded an e-business income of N22.270 billion in H1 2023, which showed a slight decline of 9.6% compared to the N24.635 billion recorded in H1 2022. Also, the bank reported that pre-tax profits increased by 169% year-on-year (YoY) to N350.4 billion in H1 2023.

FBNH– N34.014 billion

First Bank of Nigeria recorded an e-business income of N34.014 billion, which shows a 33.19% increase in H1 2023 compared to N25.537 billion in 2022. Also, the bank recorded a profit after tax of N206.3 billion for H1 2023, which showed a 213.8% increase from H1 2022.

Access Holdings – N43.948 billion

Access Holdings Plc recorded an e-business income of N43.948 billion in H1 2023, which showed a 13.09% increase from the earnings in 2022. Aside from that, Access Bank, which is considered the largest commercial bank in Nigeria, accounted for 22.88% of the total e-business revenue amongst the eleven banks.

UBA – N51.076 billion

UBA recorded an e-business income of N51.076 billion in H1 2023, which showed a 40.61% increase from the N36.326 billion recorded in H1 2022. UBA accounted for 26.60% of the total e-business income among the eleven banks. Also, the bank recorded a profit before tax of N404 billion, which showed an increase of 371% compared to H1 2022.

Other Bank E-Business Income Includes

• 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