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Nigeria tier-1 banks make N277.3bn charging fees and commission in Q3 2019

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Zenith Bank posts N153b in 9 months

Nigeria tier-1 banks, Access Bank, FBN Holdings, Guaranty Trust Bank, United Bank for Africa, and Zenith Bank, also referred to as the FUGAZ, made a total sum of N277.3 billion charged on transactions as fees and commissions in the 9 months period ended September 30, 2019.

The banks collectively made N1.7 trillion in the same period as revenue. For profit before tax and profit after tax, they made a total of N176.2 billion and N150.7 billion respectively.

On a ranking basis, Zenith Bank came first for revenue, profit before tax and profit after tax, while UBA came first for making the most in fees and commissions.

Revenue

Zenith Bank made revenue of N491.3 billion in the period ended September 30, 2019. This represents a 3.51% increase from N474.6 billion in the comparative period in 2018.

Access Bank is second with a 47.55% increase in revenue of N405 billion in 2019 as against N274.5 billion. This impressive revenue reported by the bank is the first after its merger with Diamond Bank.

FirstBank made N327.5 billion with the 9m period of 2019 ended September 30, 2019, compared to N337.6 billion in 2018, representing a marginal drop of 2.99%.

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UBA and GTBank made N297.9 billion and N224.2 billion from N268.9 billion and N237.5 billion, representing an increase of 10.77% and a drop of 5.62% respectively.

Profit before tax/profit after tax

For profit before tax, Zenith Bank led the tier 1 lenders with N176.2 billion in 2019 from N167.3 billion in 2018, representing a growth of 5.31%. Zenith Bank recorded N150.7 billion from N144.2 billion in 2018, increasing by 14.46%.

GTBank followed with a profit before tax of N170.7 billion from N164.2 billion, increasing by a marginal 3.90%. Profit after tax stood at N146.99 billion as against N142.2 billion in 2018, representing an increase of 3.35%.

Access Bank made N103.1 billion as profit before tax in this period compared to N70.3 billion, representing a whopping 46.73% increase. For profit after tax, the tier 1 lender made N90.7 billion as against N62.9 billion made in 2018, representing an increase of 44.23%.

UBA made N98.2 billion as against N79.1 billion in the same period of 2018, representing 24.17% increase. For profit after tax, UBA made N81.6 billion as against N61.7 billion in 2018, increasing by 32.30%.

FirstBank came first from the bottom with N60 billion in 2019 as against N51.3 billion in 2018, representing 16.92% increase. Profit after tax stood at N51.7 billion, growing by 15.26% from N44.9 billion in 2018.

Fees and commission

UBA made the biggest share from charging customers fees and commissions. UBA made N86.5 billion for the period, compared to N68.8 billion made in 2018 as fees and commissions. This is a 25.85% growth and 24.8% of the total made by the banks.

FirstBank came second with N76.8 billion as against N62.7 billion in the same period of 2018, representing a growth of 22.58% and 22.6% of the total made by the banks.

Zenith Bank made N73.5 billion from fees and commission in the review period of 2019 as against N62 billion in the same period of 2018. This represents a 19.09% increase and 22.4% of the total made by the banks.

Access Bank made 15.7% of the total N277.3 billion, increasing by 53.69% (N66.9 billion) from N43.5 billion in the comparative period of 2018.

GTBank made the least of N48.4 billion which is 14.6% of the total N277.3 billion made by these banks. The earnings from fees and commission increase by 19.90% from N40.3 billion in 2018.

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