Nigerian banks make N401bn from fees, commissions in nine months

Nigerian commercial banks raked in a total of N401.35 billion from fees and commissions charged customers from January to September this year, according to the National Bureau of Statistics.

The banks’ total fee and commission income rose to N148.67 billion in the third quarter of 2020 from N126.79 billion in Q2 and N125.90 billion in Q1.

The net fee and commission income, which is the second source of revenue for banks, stood at N138.26 billion in Q3, up from N117.46 billion in Q2 and N114.90 billion in Q1.

They incurred a total fee and commission expense of N10.99 billion in Q1, N9.33 billion in Q2 and N10.40 billion in Q3, the NBS data obtained by Markets Reporters showed.

The banks, however, saw their net interest income, which is the main source of revenue, drop to N344.94 billion in Q3 from N502.66 billion in the previous quarter.

Their total interest income fell to N639.71 billion in Q3 from N816.18 billion in Q2 while total interest expense dipped to N289.77 billion from N313.53 billion.

A global credit ratings agency, Fitch Ratings, forecasted last week that Nigerian bank asset quality would weaken over the next 12 months-18 months.

“Earnings are expected to recover gradually with the economy but remain exposed to further economic shocks from oil price volatility,” it said.

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