Nigerian banks reported remarkable revenue growth in Q1 2023, with ₦96.483 billion ($122,694,806) generated from electronic businesses.
The remarkable growth is attributed to the increasing adoption of fintech solutions, resulting in a significant 23.84% increase, compared to the ₦77.907 billion ($99,010,408) recorded in the last quarter of 2022.
According to Nairametrics, UBA and Access Holdings emerged as the leading earners in e-business income, with UBA reporting ₦20.929 billion ($26,651,725) and Access Holdings earning ₦20.664 billion ($26,302,782).
Zenith Bank, FirstBank, and GTBank followed closely behind with ₦12.079 billion ($15,379,970), ₦17.876 billion ($22,761,747), and ₦11.425 billion ($14,548,745), respectively.
UBA, Access Bank, and Zenith Bank—two of the top tier-1 banks—played a pivotal role in propelling e-business income, accounting for 86% of the total generated in Q1 2023.
In addition to the growth in e-business income, Nigerian banks witnessed a robust pretax profit of ₦446.722 billion($568,370,982) in Q1 2023, marking a significant 41.16% surge compared to the corresponding period in 2022.
As more people use fintech to access financial services, banks are witnessing a corresponding surge in revenue. The positive trend observed reflects Nigerian banks’ ability to adapt to evolving customer demands and their readiness to leverage the expanding digital economy.
The rise in e-business income can also be attributed to the growing popularity of mobile and online banking in Nigeria. As more people use these channels, banks are seeing a corresponding increase in revenue.
Nigeria only recently licensed mobile money operators. It is expected that over the next few years, mobile money will event drive the adoption and usage of fintech product even further up.
