Six major Nigerian banks recorded a combined profit of N3.41 trillion in the 2024 financial year, marking a significant 62.38% increase from the N2.1 trillion reported in 2023, despite widespread customer complaints and economic challenges.
A review of the banks’ audited financial statements, published on the Nigerian Exchange Group (NGX) platform, revealed that all six financial institutions—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—experienced substantial growth in gross earnings and profitability.
Their profit before tax rose to N4.1 trillion, reflecting a 42.7% increase compared to N9.61 billion recorded in 2023. The banks attributed their profit growth to equity holders, non-controlling interests, and earnings per share. As a result, shareholders saw increased dividends:
- GTCO announced a final dividend of N7.03 per share, bringing the total dividend for 2024 to N8.03 per share, compared to N3.20 in 2023.
- Zenith Bank proposed a final dividend of N4.00 per share, in addition to an interim dividend of N1.00, totaling N5.00 per share.
- UBA declared a total dividend of N5.00 per share.
- Fidelity Bank proposed a final dividend of N2.10 per share.
- Stanbic IBTC increased its dividend to N3.00, up from N2.20 in 2023.
Despite the surge in profits, the banks also ramped up their corporate social responsibility (CSR) contributions. Donations to charitable and non-political organizations reached N969 billion in 2024, a substantial jump from N2.6 billion in the previous year.
However, while banks celebrated record-breaking profits, unresolved customer complaints remained a major concern. The financial statements disclosed high volumes of service-related grievances:
- GTCO received 941,241 complaints, resolving 935,081, leaving 7,998 unresolved.
- UBA recorded 3,210,708 complaints, addressing 2,090,122, with 1,120,907 unresolved.
- Zenith Bank processed 203,787 complaints and resolved 202,384, leaving 1,403 cases unresolved.
- Wema Bank received 783,461 complaints and resolved 780,063, leaving 11,372 unresolved.
Several customers voiced frustrations over prolonged transaction disputes and alleged unauthorized charges. Some, like Catherine Itoha, a GTCO customer, claimed they had yet to receive refunds for failed Point of Sale (PoS) transactions from as far back as 11 months.
Calls for Regulatory Oversight
Financial experts have urged the Central Bank of Nigeria (CBN) to intensify its oversight and ensure banks do not overcharge customers. Professor Uche Uwaleke, President of the Capital Market Academics of Nigeria, attributed the banks’ profitability to high interest rates and the depreciation of the naira, which boosted earnings from foreign-denominated assets.
He emphasized the need for regulatory intervention, stating, “The CBN should ensure banks increase savings rates in line with lending rates and prevent excessive charges on customers. The disparity between lending and savings rates must be addressed to promote financial fairness.”
Similarly, former Chartered Institute of Bankers of Nigeria President, Okechukwu Unegbu, criticized banks for allegedly imposing hidden charges on customers. “Many customers don’t challenge illegal charges because the amounts seem small. However, if N50 is deducted from 1,000 customers, the sum becomes significant,” he said.
With customer complaints on the rise, consumer protection groups, including the Bank Customers Association of Nigeria (BCAN), have called for greater accountability. Unegbu urged customers to actively contest unfair deductions, while urging regulators to enforce stricter policies on financial institutions.
As Nigerian banks continue to report record profits, the call for stronger consumer protections and fair banking practices is growing louder. The CBN faces increasing pressure to strike a balance between financial sector growth and ensuring that customers receive fair treatment in their banking transactions.
