In the first half of 2023, Nigerian banks used new digital technology to generate N192,010 billion. They made 20.32% more than N159.577 billion in 2022.
While e-business income increased, these Nigerian banks reported good pre-tax income of N1.665 trillion in the first half of 2023. They made 132% more than N716.943 billion in 2022. Despite issues like the Central Bank of Nigeria‘s proposal to restructure the currency and switch cash for new bills in the first quarter of 2023, e-business income is rising in Nigeria.
Nigeria’s financial services sector is undoubtedly changing due to fintech. People and businesses can acquire financial services more efficiently, conveniently, and cheaply. To improve services and meet the demand for digital financial solutions and financial equality, banks are spending more on fintech infrastructure.
Nigerians’ increased usage of mobile and internet banking drives e-business income. This indicates that the sector can adapt to customer demands and prosper in the digital economy.
E-business income includes profits from electronic channels, card products, and related services such as mobile apps, USSD channels, ATMs, agency banking, online banking, and POS payments. This growth bodes well for Nigeria’s financial sector, which would benefit from the digital economy.
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H1 2023 Nigerian Bank E-Business Performance Analysis
Top Nigerian banks UBA, Access Bank, First Bank, GT Bank, and Zenith Bank dominated e-business income in the first half of 2023. Their N172.524 billion represented 89.85% of the overall earnings of N192.010 billion. From N143.931 billion in 2022, this sum increased significantly.
These biggest banks posted astounding pre-tax profits of N1.104 trillion in H1, up 78.64% from H1 2022’s N618.557 billion. They contributed 66% of all banks’ pre-tax profits.
GTCO Holdings—N21.216b
GTCO Holdings recorded an e-business income of N21.216 billion in H1 2023, up 14.22% from N18.574 billion the year before. This represented 11.04 per cent of electronic banking revenue. A 217.1% increase in profit before tax (PBT) to N327.4 billion was reported by the bank. Loan book growth was 22.8%, and deposit liabilities 37%, indicating significant financial expansion.
Zenith Bank—N22.270bn
H1 2023 e-business income for Zenith Bank Plc was N22.270 billion, down 9.6% from H1 2022’s N24.635 billion. Zenith Bank remained active, accounting for 11.59% of the eleven banks’ e-business income. The bank’s gross earnings rose 139% to N967.3 billion. H1 2023 pre-tax profits rose 169% to N350.4 billion due to this expansion.
FBNH– N34.014 billion
E-business revenue at First Bank rose 33.19% to N34.014 billion in H1 2023 from N25.537 billion in 2022. It made up 17.71% of the eleven banks’ e-business revenue. H1 2023 earnings after tax for FBN Holdings Plc was N206.3 billion, up 213.8% from H1 2022. Gross, interest, and non-interest income increased at the bank.
Access Holdings—N43.948 billion
In H1 2023, Access Holdings Plc, Nigeria’s largest commercial bank, earned N43.948 billion from electronic operations, 22.88% of the eleven banks’ total revenue. Gross earnings, profit before tax, and profit after tax increased significantly in H1 2023, as did e-business income, which grew 13.09%. Due to its exceptional performance, Access Holdings’ customer deposits grew 35% year-to-date.
UBA—N51.076bn
H1 2023 e-business income for UBA rose 40.61% to N51.076 billion from N36.324 billion. UBA produced 26.60% of the eleven banks’ e-business income. Profit before tax rose 371% to N404 billion from H1 2022, demonstrating the bank’s strong financial performance and growth in operational income, total revenues, and customer deposits.
FCMB, Sterling Financial Holdings, Wema Bank, Stanbic IBTC, Fidelity Bank, and Jaiz Bank contributed to e-business income, demonstrating Nigeria’s dynamic and competitive banking sector in the digital age.
Fintech revolution in financial services
Financial services organizations employ technology to make their services more affordable, accessible, and easy for individuals and enterprises.
The fintech revolution has made getting money easier. Mobile fintech services are aiding Nigeria’s unbanked and underbanked.
Due to fintech, financial transactions have increased. Because paying bills, sending money, and trading are easier, Nigeria’s financial ecosystem is doing more transactions.
The engagement of telecom giants in financial services has exacerbated this effect, especially in rural areas where traditional banks are scarce. Telecom companies are building vital infrastructure in underserved areas, extending financial services.
Bank operations are changing due to fintech. Banks are using fintech to improve efficiency and cut costs. Profits from commissions and fees have increased due to fintech’s transformation of Nigeria’s banking system.
