Nigerian Banks Generated N192 Billion From Electronic Transactions in H1 2023

Banks in Nigeria reportedly generated N192 billion from electronic transactions in the first half (H1) of 2023. This figure represents a 20.32% increase compared to N159.587 billion earned in the same period last year.

Five Nigerian banks recorded massive e-business revenue growth, with United Bank of Africa (UBA), and Access Bank as the front runners, recording N51.076 billion and N43.948 billion respectively.

First Bank recorded N34,014 billion, Zenith Bank Plc N22,270 billion, and GTCO Holdings posted N21,216 billion, also ranking among the top earners.

Apart from the surge in e-business revenue, these Nigerian banks disclosed robust pre-tax profits of N1.665 trillion in H1 2023, signifying a remarkable 132% uptick from the N716.943 billion posted in the corresponding period of 2022.

This impressive e-business revenue growth, underscores the escalating adoption of fintech solutions in Nigeria, even amidst the challenges posed by the Central Bank of Nigeria’s currency redesign and cash swap in Q1 2023.

Also, the growth in e-business income is a direct reflection of the surging increase in the use of electronic payment methods and digital banking services in the Nigerian financial system.

The surge in electronic transactions in Nigerian banks is attributed to several factors which include financial inclusion initiatives, the proliferation of smartphones, government cashless policies, and so on.

Check Out How Some of These Nigerian Banks Performed in Electronic Transactions in H1 2023

1.) GTCO Holdings

GTCO Holdings reported an e-business income of N21.216 billion, representing an increase of 14.22%, compared to N18.574 billion generated in the corresponding period the previous year. This accounted for 11.04% of the total income from electronic banking.

The bank reported a profit before tax (PBT) of N327.4 billion, representing an increase of 217.1% over N103.2 billion recorded in the same period ended June 2022.

2.) Zenith Bank Plc

Zenith Bank Plc posted an e-business profit of N22.270 billion during H1 of 2023, a decrease of 9.6% compared to N24.635 billion recorded in the corresponding period of 2022.

The bank accounted for 11.59% of the total e-business income of the eleven banks. It also recorded a growth of 139% in its gross earnings to N967.3 billion for the half year 2023 results from N404.8 billion recorded in the corresponding period of H1, 2022.

3.) First Bank

First Bank’s e-business revenue grew by 33.19% in the first half of 2023 to stand at N34.014 billion from N25.537 billion recorded in 2022. The bank’s e-business income accounted for 17.71% of the e-business revenue captured.

FBN Holdings declared N206.3 billion profit after tax for H1, 2023, representing a 213.8% increase from N65.7 billion in H1, 2022. Profit after tax rose by 231.1% to N187.2 billion as against N56.5 billion in H1, 2022, while earnings per share also rose by 234% to N5.19 higher than N1.55 in H1, 2022.

4.) Access Holdings Plc

Access Holdings Plc, generated N43.948 billion from its electronic business, accounting for 22.88% of the total amount generated by the eleven banks under consideration.

Its e-business income grew by 13.09% during H1, 2023, from N38.861 in H1, 2022. Access Holdings reported a gross earnings figure of N940.3 billion, reflecting a year-on-year (y/y) growth of 58.9%. 

According to the Group, the substantial surge was driven by a combination of a 63.0% growth in interest income and a 51.9% increase in non-interest income.

5.) UBA

The United bank of Africa (UBA), recorded a sum of N51.076 billion as e-business income during the first half of the year 2023, an increase of 40.61% compared to N36.324 billion recorded in the first half of 2022.

The bank accounted for 26.60% of the total e-business income realized by the eleven banks.

UBA Group reported a profit before tax of N404 billion, representing an extraordinary increase of 371% when compared to N85.75 billion recorded in the first half of 2022.

The results also showed as of June 30, 2023, a profit after tax (PAT) of N378.24 billion, representing a leap of 437.8% over H1 2022.

The surge in electronic transactions in Nigerian banks reflects a broader global trend toward digitalization in the financial sector. 

While this shift offers numerous advantages, it also presents challenges related to cybersecurity, financial literacy, and ensuring that all segments of the population can participate in the digital economy. 

Therefore, ongoing efforts to improve digital infrastructure, enhance security measures, and promote financial education are crucial for sustaining and maximizing the benefits of electronic transactions in Nigeria.