June 15, 2024

Banks revenue surge by 38.9% amid CBN’s cashless policy


The combined revenue from electronic banking of 10 listed banks rose by 38.9 per cent last year on the back of the Central Bank of Nigeria, CBN’s cashless drive.

According to the bank’s latest financial statement, the total revenue rose from N427 billion to N309 billion in 2022.

The banks are Access Holdings Plc, Zenith Bank Plc, United Bank for Africa (UBA) Plc, FBN Holdings Plc, Guaranty Trust Holding Company (GTCO) Plc, Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, Sterling Financial Holdings Company Plc, and Wema Bank Plc.

Reacting to the development, Tesleemah Lateef, a bank analyst at Cordros Securities Limited, says people are doing more transactions online rather than using cash.

“The rise in electronic banking income is a factor in the volume that banks have transacted with during the first half of 2023,” she said.

She said the volume of online transactions has increased because the cashless policy in the first quarter of 2023 has led to more people doing more transactions online.

“If charges remain the same and volume of transaction increases, then banks will rake in more money from electronic banking.”

UBA recorded the highest electronic banking revenue of N125.5 billion, followed by Access Holdings with N101.6 billion. FBN Holdings, Zenith Bank, and GTCO had N66 billion, N51.8 billion and N40.8 billion respectively.

Recall that the Central Bank of Nigeria in 2012 commenced a cashless policy journey within Nigeria’s banking sector.





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