10 banks rake N578bn commission in 9 months

What is the Banks’ commission? They include credit-related fees and commissions, account maintenance charges and handling commission, commission on foreign currency denominated transactions, channels and other e-business incomes and commission on virtual products, among others.

Ecobank Transnational Incorporated, Zenith Bank Plc and United Bank for Africa Plc led seven other banks in N577.9bn commission generated from customers’ transactions in the first nine months of 2019.

Findings revealed that nine out of the 10 banks generated N78.9bn in maintaining customers’ accounts in the nine months of 2019, an increase of 23.8 percent compared with N63.76bn reported in the first nine months of 2018.

Of the N577.9bn transaction commissions from customers in the first nine months of 2019, ETI contributed 21.4 percent in the period under review.

The pan-African bank reported N123.8bn transactions commission from customers in the first nine months of the year, about 7.1 percent increase over N115.6bn generated in the first nine months of 2018.

Following ETI was UBA with N86.5bn transactions commission generated from customers in the first nine months, a 25.9 percent increase compared with N68.76bn reported in the same period in 2018.

Zenith Bank reported a 26 percent increase in transactions commission from customers in the first nine months amounting to N86.4bn compared with N68.8bn reported in the corresponding period of 2018.

FBN Holdings Plc reported N76.9bn total transactions commission in the first nine months of the year, up from N62.6bn.

Access Bank Plc reported N66.89bn generated from the commission in the first nine months of the year, an increase of 53.7 percent from N43.5bn reported in 2018.

Stanbic IBTC Plc reported an increase of five percent in transactions in nine months to N56.5bn, compared with N53.85bn in 2018, as Guaranty Trust Bank Plc generated N48.37bn in nine months of 2019 compared with N40.35bn reported in nine months of 2018.

Sterling Bank Plc, in the period under review, reported N14bn transactions commission on customers against N10.8bn reported in the previous year.

Union Bank of Nigeria Plc reported a 16.7 percent increase in transactions commission on customers to N12.14bn in the first nine months compared to N10.4bn reported in a similar period of 2018.

Fidelity Bank Plc reported N6.19bn transactions commission in the first nine months of the year compared to N5.16bn reported in a similar period of 2018.

The President of the Bank Customers Association of Nigeria, Dr. Uju Ogubunka, had called on the Central Bank of Nigeria to supervise banks in the country on commission imposed on customers.

According to him, CBN needs to impose deterrent sanctions on any bank found, not just violating the regulations but also cheating customers.

He said, “On the part of customers, there is the need for them to review their accounts periodically with a view to ensuring they are being managed in accordance with the rules/regulations of the noble banking profession.”