GTB, FBN Holdings, 8 others Nigerian banks report N26.8bn on account maintenance fees six months

Guaranty Trust Bank Plc (GTB), First Bank of Nigeria Holdings Plc, and eight other commercial banks operating in Nogeria reported N26.8 billion on current account maintenance fees in the first six months of 2017.
Others are Sterling Bank Plc, FCMB Group Plc, Diamond Bank Plc, Union Bank of Nigeria Plc, Unity Bank Plc, Zenith Bank Plc, Access Bank Plc and United Bank for Africa Plc (UBA).
The 10 commercial banks in half year of 2016 generated about N26.5 billion for maintaining customers’ current account.
Of the N26.8 billion generated from customers’ current account maintenance, Tier-one banks contributed about N21.99 billion in six months under consideration, a decline of 2.1 per cent from N22.46 billion recorded in six months of 2016.
Access Bank, one of the Tier-one bank under consideration recorded 54.4 per cent increase in account maintenance fee to N1.9 billion from N1.26 billion while Account maintenance fee of United Bank for Africa Plc rose by 34.4 per cent from N1.9 billion recorded in six months of 2016 to N2.6 billion in six months of 2017.
The likes of Zenith Bank and First Bank of Nigeria Holdings Plc announced 6.69 per cent and 34.2 per cent decline in account maintenance fees.
Zenith Bank’s account maintenance fee, moved from N8.9 billion to N8.3 billion while First Bank of Nigeria reported N4.2 billion account maintenance fees in six months of 2017 from N6.4 billion reported in prior six months of 2016.
Aside Sterling Bank that recorded decline in account maintenance fees, other Tier-two banks recorded significant increase in account maintenance fee in the six months of 2017 under review.
Sterling Bank reported 4.5 per cent decline in account maintenance fee to N662 million as against N693 million reported in six months of 2016.
Diamond Bank reported 27 per cent increase in current account maintenance fee from N1.8 billion to N2.3 billion while Union Bank of Nigeria reported 19.3 per cent increase in account maintenance fee to N712 million as against N597 million in prior six months of 2016.
FCMB group reported N738 million in current account maintenance fees, an increase of 16.6 per cent from N633 million reported in six months of 2016 while Unity Bank’ s current account maintenance fees rose marginally by 5.7 per cent to N369 million from N349 million in six months of 2016.
However, The Central Bank of Nigeria (CBN) had indirectly reintroduced Commission on Turnover (CoT) fee as Current Account Maintenance (CAM) Fee in 2013.
In 2013, the apex bank commenced phased reduction of CoT which terminated with zero CoT charge this year.
However, the Director, Financial Policy & Regulation Department of CBN , Mr. Kevin Amugo, in a circular replaced the CoT with CAM but subject to maximum of N1 per N1000 (Mille).
The circular was titled, “Introduction of Negotiable Current Account Maintenance Fee Not Exceeding N1/Mille.
It stated, “The Revised Guide to Bank Charges (RGBC) which came into effect on April 1, 2013 provides for a phased elimination of COT charges in the Nigerian banking Industry. Under the guidelines, a zero COT regime was to come into effect from January 2016.
The CBN noted that while the gradual phase out was being observed, some banks continued to charge Account Maintenance Fees in addition to the reduced COT rate, which in effect amounted to double coincidence of charges.
The CBN is not oblivious of the impact of declining crude oil prices; operation of Treasury Single Account; and other market turbulences on the viability and stability of the banking system.
“In furtherance of the mandate to promote and safeguard a sound financial system in Nigeria, banks are by this circular reminded that the 2016 Zero COT regime as jointly agreed during the 311th Bankers Committee meeting of February 12, 2013 has come into effect. In the interest of stability of the banking system, a Negotiable Current Account Maintenance Fee not exceeding N1 per mille may be charged in respect of all customer induced debit transactions. Please ensure strict compliance”.
The apex bank then explained.