Nigeria’s tier-one banks generated N430.91bn in e-business revenue in the first nine months of 2024, reflecting a 66.15 per cent increase from the N259.34bn recorded in the same period in 2023.
This surge, captured in a report seen by THE WHISTLER, highlights the impact of fintech adoption on the banking sector, as banks increasingly leverage digital solutions to meet the demand for online and mobile banking services.
The data, sourced from financial statements of major Nigerian banks, UBA, Access Holdings, FBNH Bank, GTCO, and Zenith Bank, revealed that United Bank for Africa (UBA) and Access Holdings were the highest earners.
UBA recorded e-business revenue of N144.49bn, a 90.75 per cent increase from the previous year, while Access Holdings generated N121.13bn, up by 72.18 per cent.
This substantial growth in e-business revenue also aligned with strong profit margins. Combined, the banks reported a profit before tax (PBT) of N3.43trn, a 97.3 per cent year-on-year increase from N1.74trn in 2023.
This performance underscores the rising demand for digital services across Nigeria as more customers turn to online and mobile platforms for financial transactions.
A bank-by-bank breakdown of e-Business revenue growth in 2024 showed that UBA led the tier-one banks in e-business income, achieving N144.49bn in revenue, which accounted for 33.53 per cent of the total e-business income.
The bank’s profit after tax also rose to N525.31bn, marking a 16.92 per cent increase over the same period in 2023.
Access Holdings Plc generated N121.13bn from its electronic business, a 72.18 per cent increase from N70.35bn generated a year earlier. This accounted for 28.11 per cent of the total amount generated by the five banks under consideration. The group’s profit after tax of N457.75bn during the nine months was also an 82.77 per cent year-on-year increase from the same period in 2023.
Zenith Bank Plc posted an e-business income of N62.27bn during the first nine months of 2024, a decrease of 86.19 per cent compared to N33.55bn recorded in the corresponding period of 2023.
The most capitalized bank on the NGX, accounted for 14.45 per cent of the total e-business income by the eleven banks.
The group reported a profit after tax of N827.28bn during the nine months, an 90.45 per cent year-on-year increase from N434.17bn recorded the same period in 2023.
FBNH’s e-business revenue grew by 13.72 per cent in the nine months of 2024 to stand at N55.48bn from N48.79bn recorded in 2023. However, the bank’s e-business income accounted for 12.88 per cent of the e-business revenue captured.
According to the group’s financial statements for nine months, the company’s profit after tax (PAT) was N533.88bn, a 125.82 per cent increase from the N236.42bn recorded in the corresponding period in 2023.
GTCO Holdings reported an e-business income of N47.54bn, representing an increase of 54.14 per cent, compared to N30.91bn generated in the equivalent period the previous year.
The holding company accounted for 11 per cent of the total income generated by the eleven banks from electronic banking.
The group also recorded a profit after tax of N1.085trn during the nine months, representing a year-on-year increase of 195.3 per cent from N367.42bn recorded in the corresponding period of last year.
The e-business earnings reported by these banks reflect a broader trend of digital transformation driven by fintech. Nigerian banks have increasingly invested in mobile applications, USSD codes, ATMs, internet banking, agency banking, and POS payments to capture the shift toward digital financial services.
Fintech solutions have not only improved accessibility and convenience for customers but have also enabled banks to streamline operations and boost non-interest income from transaction fees.
With growing financial inclusion as a key benefit, fintech is helping previously unbanked and underbanked individuals access financial services, especially in rural areas.
Telecommunications companies have also contributed to this shift, using their extensive reach to offer mobile banking options to communities with limited bank access.
This collaboration between telecoms and financial institutions has significantly boosted transaction volumes across the country, meeting the demand for digital payment and money transfer services.
As Nigerian banks continue to integrate fintech into their business models, they are positioned to capitalize on the country’s expanding digital economy.
The success of tier-one banks in generating e-business revenue and profit growth underscores the importance of fintech in driving sector-wide innovation and financial inclusion.
With a focus on customer-centric solutions and strategic partnerships, these banks are well-placed to maintain their growth trajectory in the evolving financial landscape.