Top 10 Banks in Nigeria by E-Commerce Revenue in Half Year 2022

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As Nigeria continues to leverage fintech, banks listed on the Nigerian Stock Exchange (NGX) reaped N158.165 billion from e-commerce in H1 2022, increasing revenue by 16.48% over compared to the 135.789 billion naira recorded during the corresponding period. of the previous year.

E-commerce revenue includes revenue from electronic channels, card products and related services.

Hence, revenue is generated through transactions such as mobile apps, USSD channels, automated teller machines (ATMs), bank branches, internet banking, and point-of-sale (POS) payments.

The financial services landscape is changing rapidly due to the disruption and innovation introduced by fintech; anyone with an internet-enabled phone can access a plethora of financial services, from payments to insurance, all at the touch of a button.

This means that a significant number of Nigerians can participate in the digital economy. Businesses and opportunities that would not have been possible a few years ago have been born, thanks to the surge in fintech adoption.

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All of these points to significant growth in the volume of transactions within the financial services sector, as well as consequent gains in economic activities.

In addition, the entry of telecommunications operators into the financial services sector means that they can borrow important financial services to the last mile simply by using their existing infrastructure, especially in rural areas. It has also significantly changed the landscape of financial services, along with many other benefits such as the many jobs created.

Analysis of data gathered by Nairalytics from the financial statements of listed banks shows that some Tier 1 banks such as Access Bank, UBA and Zenith Bank top the list of banks with the highest e-business revenues. high in the first half of 2022.

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These banks recorded an after-tax profit of N500.9 billion in the first half of the year, an increase of 13% from the N443.17 billion posted in the first half of 2021.

Note that this analysis excludes the cost of earning the income and would have been different if the expenses incurred to earn the income had been net.

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GTCO Holdings – N10.977 billion

  • GTCO Holdings reported e-commerce revenue of N10.977 billion, an increase of 4.57%, from the N10.497 billion generated in the equivalent period the previous year.
  • The holding company accounted for 6.95% of the total revenue generated by the thirteen banks from electronic banking.
  • Guaranty Trust Holding Co Plc’s 2022 half-year financial result showed a pre-tax profit of N103.249 billion for its 2022 half-year results, a year-on-year growth of 10.95%.
  • In its unaudited semi-annual financial statements submitted to Nigeria Exchange Limited, the Bank has also made significant improvements across all key performance indicators.
  • The result is on the back of an inflationary year, where businesses and their customers have had to deal with the rising cost of goods and services.
  • Analysis of the results indicates that the bank’s gross profit increased by 15% to N239.288 billion from N207.914 billion reported in 2021, driven by a 13% growth in net interest income.
  • Profit after tax amounted to N77.557 billion compared to N79.41`4 billion in 2021, representing a marginal decline of 2.34%.

Zenith Bank – N24.635 Billion

  • Zenith Bank Plc recorded an e-commerce revenue of N24.635 billion in the second quarter of 2022, an increase of 44.50% from the N17.048 billion recorded in the corresponding period of 2021.
  • The most capitalized bank in NGX accounted for 15.57% of the total e-business revenue of the thirteen banks.
  • Zenith Bank Plc recorded a profit after tax of N111 billion for the first six months of 2022, an increase of 5% compared to the amount for the first half of 2021.
  • The company’s financial report shows an increase in profit following an increase in interest income recorded for the period of the first half of 2022 compared to the amount of the previous year.
  • The company increased its interest income by 18.5% to close at N242 billion in the first half of the year. This was triggered by loans and advances to customers which recorded a record N163 billion as well as government and other bonds at N51 billion, among others.
  • Interest and similar expenses also increased to N56 billion from N43 billion, resulting in net interest income of N185 billion.
  • Other operating income recorded a negative N655 million in the first half of 2021, mainly influenced by the foreign exchange revaluation loss to N6.2 billion. In particular, the currency revaluation loss represents the loss resulting from the revaluation of assets and liabilities denominated in foreign currencies held in books other than trading.

FBNH – 25.537 billion naira

  • First Bank’s e-commerce revenue declined by 11.37% in H1 2022 to N25.537 billion from N28.816 billion recorded in H1 2021.
  • However, the bank’s e-business revenue accounted for 16.14% of captured e-business revenue.
  • FBN Holdings Plc reported gross profit of N338.5 billion for its 2022 half-year results, representing a 22.6% year-on-year growth from N1 billion recorded in 2021.
  • The group reported net interest income of N152.9 billion, up 49.3% year-on-year from N102.4 billion in 2021, while non-interest income came in at 8 billion, down 2.4% year-on-year from 111.5 billion in 2021.
  • It reported a pre-tax profit of N60.0 billion, up 40.0% year-on-year from N9 billion in 2021. Its after-tax profit was N53.3 billion, in up 42.3% year-on-year from N37.4 billion in 2021.

UBA – N36.324 billion

  • The Pan-African bank recorded a sum of N36.324 billion as e-commerce revenue in the second quarter of 2022, an increase of 22.70% from the N29.603 billion recorded in the first half of 2021.
  • The bank accounted for 22.96% of the total e-commerce revenue earned by the thirteen banks.
  • The consolidated and separate interim financial statements of United Bank for Africa Plc for the period ending June 2022 showed the bank increased its first half profit by 16% to record N70.33 billion from N60.58 billion. naira in the first half of last year.
  • During the period, the bank increased interest income by 15.6% to N257.4 billion from N222.6 billion in the same period of 2021, investment in treasury bills, bonds and others having increased.
  • Interest expense was valued at N79.9 billion in the first half of 2022 from N74.6 billion in the first half of 2021 as banks saw more customer deposits during the period, while income net of interest was N177.46 billion. .
  • Fee and commission income increased to N96.4 billion in the first half of 2022 from N74.1 billion in the first half of 2021 due to higher credit related fees and income, banking services income electronics and income from commercial transactions, among others.

Access to Assets – N38.861 Billion

  • Access Holdings Plc, which is the largest commercial bank in the country, topped the list after generating N38.861 billion from its e-business, accounting for 24.57% of the total amount generated by thirteen banks considered.
  • Its e-commerce revenue grew by 29.92% year-on-year from 29.912 billion naira recorded the previous year. Access Holdings also topped the list in Q1’22 with N20.13 billion from its e-business, accounting for 26.1% of the total amount generated by thirteen banks considered during the period.
  • Access Holdings Plc’s 2022 half-year financial result showed a gross profit of N591.803 billion for its 2022 half-year results, representing year-on-year growth of 31.42%.
  • In its unaudited semi-annual financial statements submitted to Nigeria Exchange Limited, the Bank has also made significant improvements across all key performance indicators.
  • Analysis of the results indicates that the bank’s pre-tax profit increased slightly by 0.42% to N97.791 billion from N97.379 billion in 2021.
  • Profit after tax stood at N88.739 billion compared to N86.819 billion in 2021, representing a marginal gain of 2.21%.
  • Interest income calculated using the effective interest rate increased by 22.51% to 342.530 billion naira from 279.594 billion naira recorded in the half of 2021.

Others include

  • FCMB – 6.7 trillion naira
  • Sterling Bank – 3.923 Billion Naira
  • Union Bank – N3.871 Billion
  • Stanbic IBTC – N2.443 Billion
  • Wema Bank – N1.653 Billion

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