FBN Holdings, four other banks generate N74bn for maintaining customers’ account

With the increasing customers deposit, FBN Holdings Plc and four other banks generated N74billion from maintaining customers’ accounts in 2024.

This is about 59 per cent increase when compared to N46.61billion generated by these five banks in 2023.  The other banks are: FCMB Group Plc, Wema Bank Plc, Stanbic IBTC Holdings Plc and Sterling Financial Holdings Company Plc.

From banks unaudited financial statements for period ended December 2024, an estimated N661.17 billion was generated as fees and commission from customers, about 175 per cent increase over N240 billion generated in 2023 financial year.

In terms of maintaining customers account, FBN Holdings generated the highest amount, followed by FCMB Group.

In the period under review, FBN Holdings generated N36.96billion from maintaining customers’ accounts, representing an increase of 66 per cent from N22.32billion 2023,  while FCMB Groooup announced N13.9 billion from maintaining customers’ accounts, representing an increase of 60 per cent from N8.69billion reported in 2023.

The Central Bank of Nigeria (CBN) in its “guide to charges by banks, other financial and non-bank financial institutions” circular released January 2022 stated that Current Account Maintenance Fee (CAMF) is applicable to current accounts only in respect of customer-induced debit transactions to third parties and debit transfers/lodgments to the customer’s account in another bank.

According to the circular, the CAMF is not applicable to Savings Accounts and negotiable subject to a maximum of N1 per mille.

The apex bank defined CAMF as the monthly fee chargeable on current accounts based on the level of customer-induced debit transactions that occurred in the account during the month.

“This fee is not applicable to all bank-induced debits and customer-induced transfers to other accounts in the same name and in the same bank,” the apex bank added.

Despite the competitive environment as regarding CBN licensing more Fintech companies to operate in the electronic-banking transactions, the eight DMBs have maintained stronger earning from non-core banking operations. 

Analysts at Vetiva Research in a report said, “we anticipate some erosion of banks’ Non-Interest Revenue once the two leading telcos (MTN Nigeria and Airtel) begin the operations of their Payment Service Banks (PSBs).

“MoMo and Smartcash launched in May 2022yand have enjoyed strong early adoption, offering zero transaction fees. We expect the attraction of seamless transactions, with little to no fees, to draw many users of USSD and Digital banking platforms, thus we predict a slowdown in transaction volume growth.

“In order to fight the new competition, some banks may be forced to lower transaction fees or offer free transactions in order to entice customers back to their platforms.”