Kayode Tokede
Despite a severe competition from fintech companies operating in Nigeria, and other sub-Saharan African countries, a total of 10 Deposit Money Banks (DMBs) generated N140.97 trillion as deposits from customers in 2024.
This represents a 51 per cent growth in deposits when compared to N93.5 trillion generated in 2023, according to the audited results and accounts posted on the Nigerian Exchange Limited (NGX).
The development also indicates increased public confidence in the formal banking system amid the high cost of living, orchestrated by the double-digit inflation rate and devaluation of the naira.
The DMBs are: Ecobank Transnational Incorporated (ETI), Access Holdings Plc, Zenith Bank Plc, United Bank for Africa (UBA) Plc, Guaranty Trust Holding Company Plc (GTCO), First Holdco Plc, Fidelity Bank Plc, FCMB Group Plc, Stanbic IBTC Holdings Plc, and Wema Bank Plc.
These DMBs experienced a remarkable surge in deposits from customers in recent years.
Deposits from customers are among the most competitive assets in the banking sector, as they serve as the primary source for issuing loans and funding other investments.
Among the 10 listed DMBs on the Nigerian Exchange Limited (NGX), THISDAY gathered that ETI, followed by Access Holdings and Zenith Bank Plc has the highest deposits from customers in 2024.
THISDAY learnt from the audited results and accounts posted on NGX that demand deposits from customers impacted total deposits in the year under review.
Investigation showed that average interest on 12 deposits closed December 2024 at 13.57 per cent from 9.75 per cent in December 2023, attributable to CBN’s increase in Monetary Policy Rate (MPR).
The breakdown revealed that ETI announced N31.64 trillion deposits from customers in 2024, about 66.4 per cent increase over N19.01 trillion in 2023, while Access Holdings reported N22.52 trillion deposits from customers in 2024, representing an increase of 47 per cent from the N15.3 trillion posted in 2023.
The two Pan-African financial institutions have subsidiaries in over 30 African countries that have played a critical role in customers’ deposits.
In the year under review, Zenith Bank announced N21.96 trillion in customer deposits, up by 45 per cent from N15.17 trillion in 2023.
Following Zenith Bank was UBA with N21.89 trillion in customer deposits in 2024, a 47 per cent increase when compared to N14.89 trillion in 2023.
DMBs such as First Holdco declared N17.17 trillion deposits from customers in 2024, representing an increase of 61 per cent from N10.66 trillion in 2023, while GTCO posted N10.01 trillion deposits from customers in 2024, about 35 per cent growth from N7.4 trillion declared in 2023.
Others are: Fidelity Bank, N5.9 trillion; FCMB Group, N4.3 trillion; Stanbic IBTC Holdings, N3.01 trillion and Wema Bank, N2.53 trillion.