A total of nine Nigerian banks spent N23 billion on business trips during the year 2021, data collated from the banks’ financial reports have shown. The amount includes the cost of travel, hotels, passages and other logistics tied to travelling within and outside the country.
The banks are Access Bank, Fidelity Bank, Sterling Bank, United Bank for Africa, Zenith Bank, GTBank, Stanbic IBTC, FirstBank and FCMB.
From analysis, the amount spent during the period is 15% higher than the N20 billion spent traveling by the banks the previous year (2020). The increase seen in 2021 could be attributed to the ease in lockdown and the resumption of economic activities locally and internationally compared to 2020 when movement was restricted due to the global pandemic.
Out of the total, tier-one banks, Access Bank, UBA, Zenith, First Bank, and GTBank paid out N21 billion which represents 91% of the total amount for business trips.
Nairametrics highlights the amount spent by the banks in order of amount spent as follows;
Fidelity Bank
Fidelity bank spent N897 million on travel expenses in 2021. The amount reflects a 7% dip from the amount it saw during the same period the previous year at N964 million.
Fidelity bank saw its gross earnings improve in 2021 from N206 billion to N249 billion. Consequently, the profit for the period was reflective of this as it also improved from N27 billion during the pandemic year to N38 billion during the recovery year.
Zenith Bank
Zenith bank comes next on the list, recording N2.6 billion in travel and hotel expenses which depicts a 40% rise from the amount during the Covid period.
In its financial statement for the year 2021, the bank reported a profit after tax of N244.5 billion, the highest on record, and reflects a 6.07% increase year on year. This is on the back of growth seen in Interest Income from N420.81 billion to N427.60 billion in the current period.
FirstBank
First Bank of Nigeria spent N4.2 billion on travel and passages in 2021, a 21% rise from the N3.5 billion recorded in 2021.
The bank reported a profit after tax of N117.8 billion in 2021, up 73.9% y-o-y from N67.8 billion posted in 2020 while it profits before tax was N130.9 billion, up 77.9% y-o-y from N73.6 billion reported in 2020.
During the year, the bank’s non-interest income grew by 106.4% to N342.2 billion from N165.8 billion on the back of increased fees and commission income, treasury activities and other operating income. Similarly, it reported gross earnings of N716.8 billion, up 30.3% y-o-y from N550.3 billion posted in 2020.
UBA
UBA is the second-largest spender on business travel. The bank recorded a total of N5 billion which represents 28% of the total amount spent by banks spotlighted. The amount is also slightly up by 5% compared to the amount spent in 2020 for the same purpose.
The bank delivered a robust 20.3% growth in profit before tax to N153.1 billion in 2021, compared to N127.3 billion at the end of the 2020 financial year while it profits after tax rose grew by 8.7% to N118.7 billion in 2021, against N109.2 billion recorded the previous year.
Access Bank
Access Bank spent the highest on travel expenses in 2021 at N8 billion. The amount spent during the period is 36% of the total amount spent by the nine banks and also represents 16% increase from the N7.1 billion spent for the same purpose during the pandemic year.
The bank reported a profit of N160 billion in 2021, a 51.13% increase year on year while its net interest income grew by 14.64% from N262.95 billion to N301.46 billion in the current period.
A cursory look at the data shows that the bank maintains the top position as the highest spender on travel expenses. Last year, it was top on the list followed by UBA which recorded N4.94 billion.
This reinforces the bank’s commitment to maintaining international ties whilst spreading its tentacle to reach far and wide around the globe. The bank has headquarters in Nigeria with Ghana, Kenya, other African countries as well as the United Kingdom and recently extended to Botswana, Mozambique, South Africa and Zambia.
Bubbling Under
- FCMB – N564 million
- GT Bank – N483 million
- Sterling Bank – N415 million
- Stanbic IBTC – N255 million
This is a lot.