Banks: Customers Groan As Banks Make N800 Bn Commission

By Fola James

The 2019 financial year has been very rewarding for many Nigerian banks after making so much from maintenance of customers’ accounts.

At least, 12 banks raked in over N80 bn from Account Maintenance alone in the first three quarters of the year, a significant percentage increase from the preceding year 2018.

In total, the magazine learned that top banks in the country have become so rich after making a whopping N578 bn from various commissions levy from customers’ accounts.

The commissions include credit related fees and commissions, account maintenance charges and handling commission.

Others are commission on foreign currency denominated transactions, channels and other e-business incomes and commission on internet banking, among others

Kafayat Imran, a trader at Daleko market told the magazine that she transacts over 100 businesses in a day, using the internet banking platform obtained in her bank, that she has lost count of how much is deducted daily from her accounts by her banks.

“50 naira in at least hundred places is about N5000, when I make small money transfers to customers and acquaintances.

There are times when I make huge transfers directly from the banks, in those instances the commissions are higher,” she explained, adding that the Central Bank of Nigeria, CBN must prevail on commercial banks in the country to reduce the bogus levies on customers’ accounts.

It doesn’t seem the banks are prepared to jettison one of the highest money spinning items on their lists, apart from interest on loans, capital investments etc.

According to financial experts bank charges on customers’ accounts could rise to over N800bn by the end of the year.

Eco Bank takes the highest share of the N577.9bn transaction commissions from customers with 21.4 per cent 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 per cent increase over N115.6bn generated in the first nine months of 2018.

Trailing behind is UBA with N86.5bn transactions commission generated from customers in the first nine months, 25.9 per cent increase compared with N68.76bn reported in the same period in 2018.

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

Also on the top 10 list is FBN Holdings Plc with N76.9bn total transactions commission in the first nine months of the year, up from N62.6bn.

On its part Access Bank Plc raked in N66.89bn from commission in the first nine months of 2019, an increase of 53.7 per cent from N43.5bn reported in 2018.

Also, Stanbic IBTC Plc recorded an increase of five per cent in transactions in the period under review 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, made N14bn transactions commission on customers against N10.8bn compared to the previous year.

Union Bank of Nigeria Plc is also on the list with 16.7 per cent, it recorded N12.14bn compared to N10.4bn reported in 2018.

Last but not the least is Fidelity Bank Plc with N6.19bn compared to N5.16bn reported in similar period of 2018.