Banks Profit N438bn from Digital Transactions in 2023

In the year 2023, a review of annual reports revealed that digital banking channels generated approximately N438 billion in revenue for 10 financial institutions.

This marked a 37.54% increase from the previous year's earnings of N318.64 billion from electronic transactions.

E-business income encompasses revenue from electronic channels, card products, and associated services, such as mobile applications, USSD channels, ATMs, agency banking, internet banking, point of sale payments, and credit and debit card transactions.

The rise in electronic business revenue was fueled by the growing acceptance of mobile and online banking in Nigeria.

The IT support and related expenses of the banking group increased by 148% to N23.19bn from N9.32bn in the previous year.

Access Holdings generated N101.62bn in income from its electronic business, including transactions on electronic channels, card products, and related services, marking a 70.34% increase from the previous year.

The group's IT and e-business expenses also rose to N78.05bn from N44.63bn in 2022.

FBN Holdings reported N66.34bn as earnings from its electronic business in its recently released audited statements, higher than the N55.09bn in the previous year.

The bank attributed the growth of its fees and commission income to electronic banking fees, letters of credit commission and fees, account maintenance fees, and funds transfer and intermediation fees.

Additionally, Zenith Bank's earnings from electronic banking fees in 2023 were N51.82bn, a 13.29% increase from the previous year.

The bank also highlighted its efforts in customer acquisition and financial inclusion through digital platforms and agency banking network.

The bank's investment in information and technology increased by 8.48 percent to N33.59bn from N30.97bn in 2022.

GTCO experienced a rise in electronic business income to N40.83bn from N37.74bn the previous year, while its expenses for communications, administration, and technology increased to N50.24bn from N42.39bn. 

FCMB's revenue from electronic fees and commission in 2023 reached N17.69bn, surpassing the N13.99bn recorded in the prior year.

The bank's expenditure on IT nearly doubled to N16.57bn from N9.99bn. Fidelity Bank also observed a 20.30 percent increase in earnings from e-business, reaching N14.03bn from N11.66bn in 2022.