By Abidemi Samuel
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A recent analysis of the financial statements of nine Nigerian banks has revealed that they collectively generated N4.8 trillion from loan charges in 2024. This significant revenue stream is a testament to the banks’ strategic focus on lending activities, despite the challenging economic environment.
Breakdown of Loan Charges
The N4.8 trillion generated from loan charges represents a substantial portion of the banks’ total revenue. The breakdown of loan charges among the nine banks is as follows:
First Bank of Nigeria (FBN) Holdings Plc: N642.5 billion
United Bank for Africa (UBA) Plc: N542.8 billion
Zenith Bank Plc: N523.2 billion
Guaranty Trust Holding Company (GTCO) Plc: N454.9 billion
Access Holdings Plc: N446.8 billion
Fidelity Bank Plc: N344.6 billion
Union Bank of Nigeria Plc: N286.2 billion
Ecobank Transnational Incorporated (ETI): N275.8 billion
Stanbic IBTC Holdings Plc: N244.5 billion
Strategic Focus on Lending
The significant revenue generated from loan charges underscores the banks’ strategic focus on lending activities. This focus is driven by the need to support economic growth and development, while also generating revenue for the banks.
However, the high loan charges have also raised concerns about the impact on borrowers, particularly in a challenging economic environment. The banks must strike a balance between generating revenue and ensuring that their lending activities are sustainable and supportive of economic growth.
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