In the first half (H1) of 2024, seven leading Nigerian banks reportedly generated a combined revenue of N132.45 billion from e-business operations, reflecting the continued growth of digital banking adoption across the country.
The rapid growth recorded in digital banking operations, derived from activities such as online transactions, mobile banking and ATM usage, is indicative of the increasing shift toward digital financial services.
The seven banks include; Zenith Bank, FBN Holdings, GTCO Holdings, FCMB, Wema Bank, Sterling Financial Holdings and Stanbic IBTC.
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Breakdown of E-Business Earnings Revenue:
Zenith Bank led the pack, recording N41.2 billion from e-business activities, an 85.6% increase compared to N22.2 billion in H1 2023. This significant rise is a testament to Zenith’s focus on digital transformation.
FBN Holdings followed closely, earning N35.1 billion, marking a modest 3.2% increase from N34 billion in the corresponding period of 2023, signaling steady growth in its digital services.
GTCO Holdings saw substantial growth, posting N32.5 billion in e-business revenue, a 53.3% jump from N21.2 billion in H1 2023.
FCMB registered N10.8 billion, a 45.9% increase from N7.4 billion last year, showing its growing presence in digital transactions.
Wema Bank, known for its ALAT platform, earned N6.1 billion, a remarkable 96.8% growth from N3.1 billion in H1 2023, positioning the bank as a key player in the digital banking space.
Sterling Financial Holdings reported N4.6 billion, a modest 4.5% growth compared to N4.4 billion in H1 2023.
Stanbic IBTC saw no change in its e-business revenue, maintaining N2.1 billion for both H1 2024 and H1 2023.
The substantial revenue growth reflects the increasing use of digital banking platforms, as Nigerian consumers continue to migrate from traditional banking methods to online banking. To keep up with the demand of digital services, recall that in June this year, a BusinessDay survey revealed that seven Nigerian banks increased their investments in IT from N28.19 billion recorded in the first quarter of 2023, to N73.09 billion in Q1, 2024, indicating an increase of about 159.22%.
The survey further linked the increased IT spending to the banks’ preference for electronic transactions as evident in the profits from electronic mode of payments which grew to N237 trillion in Q1, 2024 from N126 trillion in Q1, 2023.
The recent report of a surge in revenue by these banks in their e-business operations, shows that these investments in IT has yielded positive fruit. Notably, the first half of 2024 has demonstrated the significant strides Nigerian banks are making in embracing digital transformation.
As the financial industry evolves with the rise of fintech, blockchain and Artificial Intelligence, continued investment in IT infrastructure and cybersecurity will be critical for banks to stay competitive and secure in the digital era.