Six tier-2 Banks made N31.6 billion in Fee and Commission Income in the first half of 2019 financial year. Unity Bank, Sterling Bank, Jaiz Bank, Union Bank, FCMB and Wema Bank are the 6 quoted tier-2 Banks that have released their half year result to the public.
Fee and Commission Income are income earned by banks on services rendered to the banking public other that interest earned on loans. They are a major component of banks’ profit and to a large extent determines the ability of a bank to survive and sustain its profitability in the event of lowered interest rate.
Components of Fee and Commission Income includes: Credit Related Fee, Account Maintenance Fees, Management Fees, Commitment Fees, Fees on Electronics products, Fees on Contingent Liabilities, Fees on FX transactions and Other.
Tier-2 Banks Fee and Commission Income for H1 2019
FCMB raked in the highest among the 6 banks with a total of N10.1 billion in H1 2019 a 2 percent increase over the N9.93 billion in the same period in 2018. Sterling Bank made N9.8 billion from N6.9 billion a 42 percent increase over the N6.9 billion made in the corresponding period in 2018.
Union Bank was third in the category with N6.8 billion income from Fee and Commission in H1 2018 a 13 percent increase over N 6 billion in 2018 half year. Wema Bank made N 3.8 billion in H1 2019 a 25 percent increase over N3 billion made in same period in 2018.
Unity Bank increased also Fee and Commission income from N750 million in H1 2018 to N756 million same period in 2019 representing a 1 percent increase. Jaiz Bank made N576 million in half year 2019 a decline of 7 percent when compared to N617 million the bank made in 2018 corresponding period.