Data shows that Nigerian tier-1 banks, also called FUGAZ, have reported to have surmounted a total of N102.96 billion in income from the account maintenance charged to customers for the first nine months of 2023.
This amount shows that account maintenance charges rose by 20.4% in 2023 when compared to the records of the corresponding year, which settled at N85.53 billion in the first nine months of 2023.
The names of the banks whose data are recorded for account maintenance charges include First Bank, United Bank for Africa, Guaranty Trust Holding Company, Access Bank, and Zenith Bank.
Records show that the listed bank's total account maintenance charges on customers amounted to 13.6% of the total fees and commission income in the first nine months of 2023, up from the 14.8% recorded in 2022.
Regarding account maintenance, which is in line with the CBN, the maintenance fees are being charged on current accounts only regarding customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank, BusinessDay reports.
The total revenue generated from fees and commissions from the tier-1 banks rose to N755.61 in the first nine months of 2023 which was N579.01 billion in 2022.
FUGAZ Account Maintenance Analysis
Zenith Bank
Zenith Bank’s account maintenance generated 25.6% of the total fees and commission income in the first nine months of 2023 which signifies a 170 basis points increase from the corresponding year that contributed 23.9% in 2022.Zenith Bank’s account maintenance fee increased to N33.33 billion in the first nine months of 2023 from the corresponding year which settled at N28.15 billion in 2022.
Read more: https://www.investingport.com/fugaz-records-n10296-billion-from-account-maintenance/
