E-Transaction: FBNH, Stanbic IBTC, FCMB, Others Spend N81.8bn On Customers’ Fees, Commission In Q1″22

First Bank Nigeria Holdings PLC, Stanbic IBTC, FCMB and a host of other banks spent N81.8bn on customers’ fees and commission on electronic transactions in the first quarter of 2022.

This is according to the bank’s unaudited results and accounts for the period.

Fees and commission expenses are fees charged for the provision of services to customers transacting on alternate channels platform of a bank and the various debit and credit cards issued for these payments.

The unaudited result and accounts for the period under review revealed showed that the banks incurred the expenses from electronic transfers and E-banking charges.

Further analysis of the unaudited result and accounts for the period ended March 31, 2022, showed that FBN Holdings, followed by Access Holdings Plc were the two financial institutions that incurred the highest fee and commission expenses, given to their expansion across Africa.

Others were; Stanbic IBTC Holdings Plc, United Bank for Africa Plc (UBA), Zenith Bank Plc, Guaranty Trust Holding Plc (GTCO), Union Bank of Nigeria Plc, Fidelity Bank Plc, Sterling Bank Plc FCMB Group Plc and Ecobank Transnational Incorporated (ETI).

Key contributing factors to banks’ fees and commissions are credit-related fees and commissions, account maintenance charges and handling commissions, electronic banking income, and commissions on foreign exchange deals, among others.

The reported growth in fee and commission income impacted these banks’ Non-Interest Income (NII).

Extract from Q1 2022 unaudited results and accounts revealed that FBN Holdings generated N140.57billion fees & commission income from customers in Q1 2022, an increase of 24.16 per cent from N113.2billion reported in Q1 2021, followed by Access Holdings which generated N56.3billion as a fee, a commission from customers in Q1 2022, an increase of 45 per cent from N38.95billion in Q1 2021.

FBN Holdings in a presentation to analysts/investors explained that E-banking revenue grew by 15.8per cent to N56.4 billion from N48.7 billion reported in the full year ended December 31, 2021, driven by higher transactional volume in a highly competitive environment

“Account maintenance stemming from our global and large customer base continues to increase Annuity income from Asset Management, Trustee and Custodian grew 17.7per cent to N13.9 billion (Dec 2020: N11.8 billion) further supporting our revenue diversification drive

“Focus remains on sustaining non-interest revenue drive through innovations, synergies and collaboration across our businesses, ”FBN Holdings said in a presentation.

Fees from channels and other electronic-business income contributed 35.7per cent to Access Holdings fee & commission to N20.13billion in Q1 2022 from 46 per cent to N17.92 billion reported in Q1 2021.