Electronic banking is profitable for Nigerian banks as they generate N124bn in 2018

Reports have shown that Nigerian banks generated a total revenue of about N124.5 billion from electronic transactions in FY 2018.

A breakdown of the audited 2018 yearly reports from 11 banks indicates that revenue from e-transactions in the banks increased by 43 per cent year-on-year, from the N86.72 billion acquired by the banks in 2017.

The names of the various banks and the revenue generated – Below are the top 5 banks that acquired high income from e-transaction in 2018.

1. First Bank Of Nigeria Limited – First Bank tops the list with the highest income of N34.03 billion in 2018, increasing by 36 per cent from e-transactions in 2017.
2. United Bank for Africa Plc – This is followed by UBA, with revenue of about N27.92 billion in 2018, an increase of 33 per cent from N20.92 billion in the preceeding year.
3. Zenith Bank Plc – Zenith bank comes third place with revenue of N20.42 billion, rising by 44 percent from N14.15 billion generated in 2017.
4. Guaranty Trust Bank Plc – GTB is ranked as the fourth with a jump in its revenue from N7.48 billion in 2017 to N9.59 billion in 2018, representing a 28 per cent increase.
5. Access Bank Plc – Access Bank comes fifth place with an income of N8.38 billion in 2018, increasing by 45 percent from N5.79 billion in 2017.
6. First City Monument Bank: This bank earned N8.32 billion from electronic payment in 2018, increasing 45 percent from N5.75 billion in 2017.
7. Sterling Bank Plc: Earnings from electronic payment stood at  N4.85 billion in FY 2018.
8. Union Bank Plc: N4.73 billion.
9. Fidelity Bank Plc: N2.85 billion.
10. Wema Bank Plc: N2.84 billion
11. Jaiz Bank Plc: N323 million.

Recall that Nairametrics earlier analysed how Zenith Bank Plc and Guaranty Trust Bank Plc alone, raked in over N30 billion from electronic business fees in full year 2018.

How banks generate income from electronic transaction – The revenue is spawned through fees and commissions that are gotten from transactions that their customers do via Automated Teller Machines (ATMs), USSD, internet banking, Point Of Sales (POS) payments and agency banking.