Zenith Bank and Guaranty Trust Bank, two of Nigeria’s biggest banks reported profits of 193 billion naira and 184.6 billion naira respectively for the year ended December 2018.
A major contributor to the revenue of both countries were the fees earned from electronic products, which refers to income from online transfers, transactions using a mobile phone application, and so on.
Zenith Bank reported a fee of 20.4 billion naira in 2018 compared to 14.1 billion naira in 2017, while Guaranty Trust Bank, reported fees from electronic products of 9.5 billion naira in 2018 compared to 7.4 billion naira in 2017.
Despite being the two biggest banks, Zenith and Guaranty Trust Bank fall behind First Bank and UBA in terms of earnings from E-business income. Last year, Nigeria’s 5 biggest banks- First Bank, UBA, Guaranty Trust Bank, Access Bank and Zenith Bank (collectively known as FUGAZ, made a total of 68.1 billion naira from electronic income in the 2017 financial year. This was a 4.2 percent drop compared to the 71.7 billion naira reported in 2016.
Data released by the National Bureau of Statistics, shows that Nigeria’s e-payment industry is fast growing with billions of transactions taking place monthly. The report shows that Nigeria’s electronic payment market made up P.O.S, mobile payments, internet web, and e-bills have a transaction value of about 426 billion naira every month.
Nigerian Banks see this as an area of incremental revenue and have invested billions in this segment of the financial services sector. Several Fintech startups in the country have also strived to get into the financial services space, as they all jostle for a growing industry with seemingly huge opportunities for everyone.