Nigerian banks collectively posted N3.41 trillion in profit after tax for the 2024 financial year, marking a significant increase despite the ongoing economic difficulties and numerous customer complaints about bank transactions and charges

Also read: Zenith Bank reports strong financial growth in 2024 with 86% surge in earnings

In a year marked by economic challenges, Nigerian banks have shown remarkable resilience, with six major financial institutions recording a total of N3.41 trillion in profit after tax for the 2024 financial year.

This figure represents a 62.38% increase compared to the N2.1 trillion recorded in 2023, despite the country’s challenging economic conditions, rising customer dissatisfaction, and ongoing service-related complaints.

The banks in question — Zenith Bank Plc, Guaranty Trust Holding Company Plc (GTCO), United Bank for Africa Plc (UBA), Fidelity Bank Plc, Stanbic IBTC Holdings Plc, and Wema Bank Plc — also saw a boost in their gross earnings.

According to the audited financial statements published on the Nigerian Exchange Group (NGX) platform, all the banks recorded positive financial results, with profit before tax rising to N4.1 trillion, a 42.7% increase from N9.61 billion in the previous year.

Profit Margins and Dividends

Among the banks, GTCO stood out by declaring a final dividend of N7.03 per share, bringing the total dividend for 2024 to N8.03 per share, a substantial increase from the N3.20 per share paid in 2023.

Zenith Bank proposed a final dividend of N5.00 per share, including an interim dividend of N1.00, while UBA suggested a total dividend of N5.00 per share.

Fidelity Bank and Stanbic IBTC also increased their dividend payouts, with Stanbic proposing N3.00 per share against N2.20 in 2023.

Rising Donations Amid Profits

In addition to the impressive financial performance, the banks also significantly increased their contributions to charitable and non-political organizations. Donations reached N969 billion for the 2024 fiscal year, a remarkable rise from N2.6 billion in 2023.

Unresolved Customer Complaints

Despite the financial success, customer dissatisfaction remains a key issue. A significant number of unresolved complaints were recorded across the banks, with GTCO receiving over 900,000 complaints and leaving about 8,000 unresolved.

UBA faced over 3.2 million complaints, resolving just over 2 million, leaving a significant number unresolved. Zenith Bank and Wema Bank also reported unresolved customer issues, despite efforts to address the complaints.

Financial experts have called for increased regulatory oversight from the Central Bank of Nigeria (CBN) to ensure banks do not overcharge customers and that they adhere to fair practices.

Prof. Uche Uwaleke, President of the Capital Market Academics of Nigeria, pointed out that high interest rates, the depreciation of the Naira, and the recapitalization of banks were contributing factors to the banks’ profit growth.

However, he emphasized the need for the CBN to ensure that savings rates rise in tandem with lending rates and that customers are treated fairly.

Customer Complaints and Bank Charges

There are concerns over the various charges that customers face, with some alleging that their complaints go unresolved. Mrs. Catherine Itoha, a customer of GTCO, shared her frustration over N20,000 that was debited from her account due to failed Point of Sale (PoS) transactions.

Despite filling out forms and visiting the bank, the issue remained unresolved for over 11 months. Similarly, Mr. Augustine Ode, a Zenith Bank customer, expressed concern over alleged unfair practices and called on the CBN to take action against banks that defraud customers while posting huge profits.

A Call for Accountability

Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria, echoed these concerns, urging bank customers to challenge any illegal charges.

He noted that while individual charges might seem small, when applied to large numbers of customers, they could add up to significant amounts.

Unegbu called on the Bank Customers Association of Nigeria (BCAN) to take a more active role in holding banks accountable for any unfair practices.