SEVEN NIGERIAN BANKS RECORD N132.45 BILLION IN E-BUSINESS REVENUE FOR H1 2024
Detailed Breakdown:
Seven prominent Nigerian banks collectively generated N132.45 billion from their e-business operations in the first half of 2024, showcasing a significant surge in digital banking adoption across the country. The banks include FBN Holdings, Zenith Bank, GTCO Holdings, Stanbic IBTC, Wema Bank, FCMB, and Sterling Financial Holding.
This revenue increase is a reflection of the growing reliance on digital platforms by bank customers, who are increasingly shifting away from traditional banking methods. The e-business revenue for these banks includes income from transactions conducted through various digital channels such as Automated Teller Machines (ATMs), mobile banking, internet banking, Point of Sale (POS) terminals, and electronic funds transfers (EFT).
Bank Performance Highlights:
Zenith Bank: Emerged as the top earner, generating N41.2 billion, a substantial 85.6% increase from the N22.2 billion recorded in the same period in 2023.
FBN Holdings: Followed closely behind with N35.1 billion in e-business revenue, up by 3.2% from N34 billion in H1 2023, reflecting steady growth.
GTCO Holdings: Reported N32.5 billion in revenue from e-business, a 53.3% rise compared to the N21.2 billion earned in H1 2023.
FCMB: Posted N10.8 billion, reflecting a 45.9% increase from N7.4 billion in H1 2023.
Wema Bank: Recorded N6.1 billion in e-business revenue, marking a remarkable 96.8% jump from N3.1 billion in H1 2023, largely driven by its innovative ALAT platform.
Sterling Financial Holdings: Registered a modest 4.5% growth, with revenue increasing from N4.4 billion in H1 2023 to N4.6 billion in H1 2024.
Stanbic IBTC: Remained steady, reporting N2.1 billion in e-business revenue for both H1 2023 and H1 2024.
Market Insights:
While two other major banks, Access Holdings and United Bank for Africa (UBA), are yet to release their H1 2024 results, the already reported figures indicate the growing shift towards digital banking in Nigeria. This shift is largely driven by the convenience and efficiency that digital platforms offer.
Technology Investments and Challenges:
The rise in e-business revenue has been accompanied by a significant increase in IT spending by these banks. For example:
GTCO Holdings: Increased its IT expenditure by 115%, from N17 billion in H1 2023 to N36.6 billion in H1 2024.
Zenith Bank: Upped its IT investment by 167%, from N8.6 billion in H1 2023 to N23 billion in H1 2024.
Stanbic IBTC: Spent N15.8 billion on IT, up from N7.5 billion in H1 2023.
FCMB: Raised its IT spending from N6.2 billion to N8.3 billion over the same period.
As digital transactions increase, so do concerns about cybersecurity. Industry experts have emphasized the need for banks to invest more in protecting their systems against cyber threats, such as phishing, ransomware, and data breaches. Additionally, collaboration among banks to bolster security measures and mitigate risks is being recommended.
Key Takeaways:
The increase in e-business revenue is indicative of the overall growth in Nigeria’s electronic payment industry. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions rose to N234.4 trillion in Q1 2024, an 89% increase from the N123.9 trillion recorded in Q1 2023. This growth underscores the increasing embrace of digital banking solutions across the country.
Detailed Breakdown:
Seven prominent Nigerian banks collectively generated N132.45 billion from their e-business operations in the first half of 2024, showcasing a significant surge in digital banking adoption across the country. The banks include FBN Holdings, Zenith Bank, GTCO Holdings, Stanbic IBTC, Wema Bank, FCMB, and Sterling Financial Holding.
This revenue increase is a reflection of the growing reliance on digital platforms by bank customers, who are increasingly shifting away from traditional banking methods. The e-business revenue for these banks includes income from transactions conducted through various digital channels such as Automated Teller Machines (ATMs), mobile banking, internet banking, Point of Sale (POS) terminals, and electronic funds transfers (EFT).
Bank Performance Highlights:
Zenith Bank: Emerged as the top earner, generating N41.2 billion, a substantial 85.6% increase from the N22.2 billion recorded in the same period in 2023.
FBN Holdings: Followed closely behind with N35.1 billion in e-business revenue, up by 3.2% from N34 billion in H1 2023, reflecting steady growth.
GTCO Holdings: Reported N32.5 billion in revenue from e-business, a 53.3% rise compared to the N21.2 billion earned in H1 2023.
FCMB: Posted N10.8 billion, reflecting a 45.9% increase from N7.4 billion in H1 2023.
Wema Bank: Recorded N6.1 billion in e-business revenue, marking a remarkable 96.8% jump from N3.1 billion in H1 2023, largely driven by its innovative ALAT platform.
Sterling Financial Holdings: Registered a modest 4.5% growth, with revenue increasing from N4.4 billion in H1 2023 to N4.6 billion in H1 2024.
Stanbic IBTC: Remained steady, reporting N2.1 billion in e-business revenue for both H1 2023 and H1 2024.
Market Insights:
While two other major banks, Access Holdings and United Bank for Africa (UBA), are yet to release their H1 2024 results, the already reported figures indicate the growing shift towards digital banking in Nigeria. This shift is largely driven by the convenience and efficiency that digital platforms offer.
Technology Investments and Challenges:
The rise in e-business revenue has been accompanied by a significant increase in IT spending by these banks. For example:
GTCO Holdings: Increased its IT expenditure by 115%, from N17 billion in H1 2023 to N36.6 billion in H1 2024.
Zenith Bank: Upped its IT investment by 167%, from N8.6 billion in H1 2023 to N23 billion in H1 2024.
Stanbic IBTC: Spent N15.8 billion on IT, up from N7.5 billion in H1 2023.
FCMB: Raised its IT spending from N6.2 billion to N8.3 billion over the same period.
As digital transactions increase, so do concerns about cybersecurity. Industry experts have emphasized the need for banks to invest more in protecting their systems against cyber threats, such as phishing, ransomware, and data breaches. Additionally, collaboration among banks to bolster security measures and mitigate risks is being recommended.
Key Takeaways:
The increase in e-business revenue is indicative of the overall growth in Nigeria’s electronic payment industry. According to data from the Nigeria Inter-Bank Settlement System (NIBSS), electronic payment transactions rose to N234.4 trillion in Q1 2024, an 89% increase from the N123.9 trillion recorded in Q1 2023. This growth underscores the increasing embrace of digital banking solutions across the country.