A computation of Banks’ earnings from account maintenance charges, for 10 out of the 14 listed banks on the Nigerian Stock Exchange (NSE) amounts to N22 billion compared to N19.1 billion in Q1: 2019 The current year has seen a surge of N2.9 billion amounting to an increase of 13.2 percent year on year despite the coronavirus pandemic.

Account maintenance fee may be low when compared to other revenue streams, still make up a significant portion of their non-interest income.

According to the latest directive by the Central Bank of Nigeria on bank charges, Nigerian banks are allowed to charge their customers a “negotiable” N1 per mile.

What this means is that banks can charge N1 per N1000 debit transactions on current accounts. Banks’ account maintenance charges come in the form of COT (i.e., Commission on Turnover), which is a charge levied on customer withdrawals by their banks and are mainly applicable to current accounts.

A further breakdown of the earning revealed that Nigeria’s tier-1 banks, which comprises of First Bank, UBA, GTBank, Access Bank, and Zenith Bank generated a total of N18.4 billion from bank maintenance charges in Q1 2020.

The sum is 17.12percent more than N15.6 billion that was generated by the five banks during the comparable period in 2019.

The other five banks namely FCMB, Stanbic IBTC, Wema, Sterling and Union bank merely earned N3.6bn from account maintenance fee.

A further breakdown of the fees revealed that Zenith Bank generated the most income from account maintenance fees, which amounts to N5.7bn, followed by Access Bank N3.9bn and then, GTBank N3.3bn.

Other are: First Bank Plc: N3.1 billion, United Bank for Africa Plc: N2.3 billion, Stanbic IBTC N1bn, FCMB N911 million, Fidelity bank N735 million, Union Bank N406 million, Sterling bank N394 million and Wema bank N270 million.

The earning for Ecobank and Unity could not be ascertained as Unity Bank has not released it Q1; 2020 report, while that of Ecobank was not clear to our report from the financial statement According to Joseph Enenche, a banker who shed more light on the charge: “Account maintenance fee is calculated on the total amount of debit transaction or withdrawals on your account at a given interval.

“What this implies is that your account should not be charged AMC if there are no withdrawal either electronically via instant transfer, online or physical withdrawal with your cheque in the banking hall.

“If you continue to build your account balance without making withdrawals, your account will not be charged AMC.”

Source: https://www.dailytrust.com.ng/10-banks-earn-n22bn-on-account-maintenance-charges.html

Am always a fan of UBA any time anywhere twice on Saturday

But seriously bankers are really cashing out BIg if I should save the amount Gtbanks collect for each of my transactions last year ehn, e don reach me buy land

They should keep reaping off the masses. when they are ready they will rise against the establishment

I have been in UK for 7 years doing business. I have never been charged for debit card, Cheque book issuance or any stupid sms or account maintenance charge and all banks in UK are light years ahead of Nigerian banks.

Here, you call them you need card, they issue in 3 days with no charge.

CBN should introduce Walking into the bank charge. our people will pay and come online to rant

Isn't it more than that

I have 3 bank account, as of last year I stopped using Atm card for access and Fcmb, their Card maintenance fee was becoming money for data subscription...
Theives everywhere!!!

So what do we do, protest?

In other news, trump is confirmed to be a pathological liar, once again and again and again.....

All these banks are robbing us in broad daylight. I wish those international ethical hacker groups can hack and loot these banks to the tune of N10 billion each.

These people are ripping us!!

No wonder my bank paid me interest of 5 naira for the first time after 6yrs of opening savings account with them

Interesting I must say

Na Wa Oh..

GTB don learn bad tin from access and ecobank

Our money

Scammers.

To 4uk dey hungry me.

Choi, soo this our little little osusu GTB and other Banks are debiting runs into tens of billions

Good to know that my little monthly contributions is keeping some Banks alive

Just imagine.. Be cutting my #50 every month. Thieves

Bleep!

Criminals stealing from the poor to get richer and fund their expensive lifestyle

Access Bank should be ranked number one in this madness!!

But do we even blame them?
Our Government is our main oppressor.
Collect loans from International bodies and share.
Task Banks and other agencies to tax citizens.
VAT, PAT, TAT, RAT.
Every means to keep living large in the midst of a terrible recession.

Abeg!!!

Omo nah to open bank ooo

Na today?

Chai

I would have sue the OP
If UBA was not mentioned here

Inside life!

Naija246:
G

-string

The way bank deduct my money last week dey alarming

The level of exploitation in Nigeria is alarming. It's only in Nigeria that your savings account will be reducing every month. If we don't tackle these open and glaring corruptions, our institutions are not going anywhere.

And GTB no wan pay my money that was stolen in their care. Na to sue them straight.