6 banks earn N14.2bn from account maintenance fee

A breakdown of the half year unaudited financial statements of six banks that have   their result  to the Nigerian Exchange Limited has shown that they realized N14.2 billion, up from the N9.8bn from account maintenance fee.

The amount represents a 44.9 percent growth in that income line for the six banks within the period under review compared to similar periods in 2020.

Account maintenance fee is a charge that account holders may incur monthly just for having a checking account with a financial institution. Not every financial institution charges these fees (though many do), and they may not apply to every type of account offered.

The Central Bank of Nigeria (CBN) revised guidelines for Charges by Banks, Other Financial and Non-Bank Financial Institutions states that Current Account Maintenance Fee (CAMF) is only applicable to current accounts in respect of customer-induced debit transactions to third parties and debit transfers/lodgements to the customer’s account in another bank.

It also said it is negotiable on the basis of one per mille from January 2020.

First Bank alone grossed over half of the total sum as it raked it N7.9bn as against the N5.6bn it made I the same period in 2020 amounting to 55.6% of the total earnings of the banks

FCMB closely followed with N2.2bn, a growth from the N1.6bn it grossed in the same period of 2020. The amount translates to 15.5% of the total earning.

Sterling Bank followed with N1.3bn, up from N800 million in 2020, translating to 9.2% of the share.

Union Bank recorded N1bn also an improvement from N736m in 2020, translating to 7% of the share.

Wema Bank and Unity bank made N943m and N850m respectively. The amount indicates a growth from N488m and N597m in 2020, representing 6.6% and 6% respectively.