How Bank Profitability Performed in Q1 2022 (2)

Commercial banks in Nigeria have paid N25.1 billion as account maintenance fee in the first quarter of this year (Q1’22).

This represents a 17 percent year-on-year (YoY) increase when compared to N21.4 billion the customers of those banks paid in the corresponding period of 2021, Q1’21.

The Account Maintenance Fee (AMF) is the annual amount of money paid based on a percentage of the original principal balance of guaranteed loans outstanding during a fiscal year. The AMF back-up detail provides the loan information used in the calculation.

Commercial banks charge this fee to cover the cost of maintaining the account of customers. The withdrawal is mostly done monthly. The AMF is charged at N1/1 million, i.e One Naira is deducted from your account per One million naira withdrawal. 

Recall that Twentyten Daily findings had shown that three Nigerian banks have recorded a cumulative amount of N104.8 billion in the first quarter of the year.

Breakdown Analysis 

The breakdown of this payment are; Guaranty Trust Bank , GTB (N5.17 billion), Union Bank (N589 million), Access Bank (N6.04 billion), Zenith Bank (N9.27 billion).

Also, Fidelity Bank (N1.2 billion), Unity Bank (N368.6 million), Sterling Bank (N911 million), Wema Bank (N634.5 million), and Stanbic IBTC (N927 million).

Wema Bank recorded the highest increase in account maintenance fees at N634.5 million in Q1’22, 44.7 percent higher than N438.4 million recorded in Q1’21.

However, Stanbic IBTC account maintenance fee fell by 31 percent to N927 million in Q1’22 from N1.35 billion in Q1’21.

Similarly, Unity Bank’s account maintenance fees declined by 12 percent to N368.6 million in Q1’22 from N419.5 million in Q1’21.

Fee and Commission

According to the Q1’22 Financial Statements of the banks, the banks generated a net fee and commission income of N138.4 billion in Q1’22, representing a 48 percent YoY rise from N93.4 billion in Q1’21.

Similarly, fees paid by customers for electronic banking rose YoY by 18 percent to N46.4 billion in Q1’22 from N41.05 billion in Q1’22.

GTB generated N21.3 billion, Union Bank (N3.38 billion), Access Bank (N42.8 billion), Zenith Bank (N33.48 billion), Fidelity Bank (N4.8 billion), Unity Bank (N1.6 billion), Sterling Bank (N5.13 billion), Wema Bank (N4.05 billion), and Stanbic IBTC (N21.7 billion).

Highlight of data

• Wema Bank had the highest growth in fees and commission income, which rose 97.5 percent to N4.05 billion in Q1’22 from N2.05 billion in Q1’21
• It was  followed by Sterling Bank with a 40.5 percent growth to N5.13 per cent in Q1’22 from N3.65 billion in Q1’21.
• Also, Wema Bank recorded the highest increase in account maintenance fees at N634.5 million in Q1’22, 44.7 percent higher than N438.4 million recorded in Q1’21.