During the first nine months of 2023, Nigerian tier-1 banks earned N102.96 billion from account maintenance fees charged to their clients, a 20.4 percent increase from the N85.53 billion earned in the first nine months of 2022.
First Bank, United Bank for Africa, Guaranty Trust Holding Company, Access Bank, and Zenith Bank were among the banks polled.
overall account maintenance costs on clients contributed for 13.6 percent of overall fees and commission income in 9M’2023, down from 14.8 percent the previous year.
According to the Central Bank of Nigeria, account maintenance fees are only paid on current accounts for customer-initiated debit transactions to third parties and debit transfers/lodges to the customer’s account in another bank.
Account maintenance charges, albeit low in comparison to other revenue streams, account for a major amount of banks’ non-interest income.
According to a Business Day report, total fees and commission income from tier-1 banks climbed to N755.61 billion in 9M’2023 from N579.01 billion in 2022.
Zenith Bank’s account maintenance generated 25.6 percent of total fees and commission income in 9M’2023, a 170 basis point rise from the previous year’s contribution of 23.9 percent.
Foreign currency transaction fees and commissions increased from N4.44 billion in 9M’2022 to N7.38 billion in 9M’2023.
Asset-based management fees increased to N8.14 billion from N6.66 billion during the period under review, while auction fees increased to N382 million from N330 million.
Corporate financing fees fell from N293 million to N68 million, while foreign withdrawal costs jumped from N8.9 billion to N15.27 billion.
GTCO’s account maintenance generated 19.8 percent of total fees and commission income in 9M’2023, a 40 basis point decrease from 20.2 percent in the same period in 2022.
Account maintenance expenditures for the holding firm increased to N18.04 billion in 9M’2023 from N15.88 billion in 2022.
In 9M’ 2023, Access Holdings account maintenance contributed 10.5 percent of total fees and commission income, a 350 basis point decrease from 14 percent in the same period in 2022.
The holding company’s account maintenance charge and handling commission increased from N18.71 billion in 2022 to N21.85 billion in 9M’2023.
Total fees and commission income increased to N208.18 billion in 9M’2023 from N133.49 billion in the same period the previous year.