Six banks in the country have posted N3.41 trillion as profit after tax for 2024 ended against the N2.1 trillion recorded in the 2023 financial year.

This is despite diverse transaction and service complaints, customer dissatisfaction, and the country’s challenging economic situation.

The figure represents a 62.38 per cent increase from the amount recorded during the 2023 financial year. The 2024 audited financial statements posted on the Nigerian Exchange Group platform reveal that all the banks recorded increased gross earnings.

Similarly, their profit before tax rose to N4.1 trillion in 2024, which represents a 42.7 per cent increase compared to the N9.61 billion recorded in the corresponding period in 2023.

The banks analysed include Zenith Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, United Bank for Africa (UBA) Plc, Fidelity Bank Plc, Stanbic IBTC Holdings PLC and Wema Bank Plc.

The banks attributed the profit to equity holders, non-controlling interests, and earnings per share (basic and diluted).

As part of its earnings, GTCO announced a final dividend of N7.03 per share, which brought the total dividend for the 2024 financial year to N8.03 per share against the N3.20 per share paid in 2023.

Zenith proposed a final dividend of N4.00 per share in addition to N1.00 per share interim dividend, which amounted to N5.00 per share. UBA proposed a total dividend of N5.00 per share, while Fidelity proposed a final dividend of N2.10 per ordinary share, and Stanbic IBTC proposed a final dividend of N3.00 against N2.20 paid in 2023.

Similarly, the banks’ donations to charitable and non-political organisations rose to N969 billion for the 2024 FY compared to their N2.6 billion contribution in 2023.

However, there were still unresolved customers’ complaints recorded by the banks.

GTCO received 941,241 complaints and resolved 935,081, leaving 7,998 complaints unresolved, while UBA received 3,210,708 complaints and resolved 2,090,122 of them, leaving 1,120,907 unresolved for the 2024 FY.
Zenith Bank has 203,787 complaints, including the ones brought forward and resolved 202,384, leaving 1,403 unresolved.

Wema Bank received 783,461 and resolved 780,063, leaving 11,372 complaints unresolved, including the number carried forward (C/F).

Reacting to these headwinds, financial experts urged the Central Bank of Nigeria to step up its monitoring and supervisory role to ensure that banks are not overcharging customers.

Uche Uwaleke, the president of the Capital Market Academics of Nigeria, said that CBN’s Monetary Policy Committee enabled a number of banks to increase interest income.

Mr Uwaleke said that interest income increased lending rates without a commensurate savings rate increase. He said other factors that led to growth in banks’ profits exchange rate included the naira’s depreciation, which benefited banks holding foreign-denominated assets.

According to him, there is the issue of the banking sector recapitalisation, which enables banks to raise some money from the capital market and invest in IT infrastructure.

He noted that the services sector had powered growth, adding that the banking sector is within the services sector. Mr Uwaleke said the CBN should also advise banks to increase savings rates in tandem with lending rates.

Okechukwu Unegbu, a former president of the Chartered Institute of Bankers of Nigeria, said banks usually initiate all forms of charges at the expense of their customers.

Mr Unegbu regretted that some customers were reluctant to challenge their banks in the event of some charges.

Mr Unegbu called on the Bank Customers Association of Nigeria to rise up to their responsibility by holding banks accountable for their “unfair” actions to customers.

While speaking to journalists, some bank customers alleged that their complaints to their banks about transaction failure and debits had yet to be resolved by the banks.

Catherine Itoha, a customer of GTCO, said the bank had yet to reverse over N20,000 debited from her account through various failed point of sale (PoS) transactions since 11 months ago.

Ms Itoha urged some banks and their staff to adopt principles of fair practice in handling their customers.

Augustine Ode, a Zenith Bank customer, appealed to the CBN to check the excesses of some banks, who were allegedly defrauding customers and posting huge profits.

(NAN)