Six Nigerian Banks Record N3.41trn Profit in 2024 Despite Customer Complaints, Economic Challenges

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Six major Nigerian banks reported a combined Profit After Tax (PAT) of N3.41 trillion for the 2024 financial year, a significant 62.38% increase from the N2.1 trillion recorded in 2023.

This surge in earnings occurred despite widespread customer complaints over transaction failures, service inefficiencies, and the country’s tough economic climate.

According to audited financial statements filed with the Nigerian Exchange Group (NGX), the banks—Zenith Bank, GTCO, UBA, Fidelity Bank, Stanbic IBTC, and Wema Bank—all recorded higher gross earnings. Their Profit Before Tax (PBT) also rose by 42.7% to N4.1 trillion, up from N969.9 billion in 2023.

The banks attributed the profit growth to equity holders, non-controlling interests, and improved earnings per share. Several also announced increased dividend payouts:
– GTCO declared a total dividend of N8.03 per share (up from N3.20 in 2023).
– Zenith Bank proposed N5.00 per share.
– UBA offered N5.00 per share.
– Fidelity Bank recommended N2.10 per share.
– Stanbic IBTC increased its dividend to N3.00 from N2.20 in 2023.

Additionally, the banks’ donations to charitable causes surged to N969 billion in 2024, a massive jump from N2.6 billion the previous year.

Customer Complaints Remain Unresolved
Despite their profitability, the banks struggled with unresolved customer grievances:
– GTCO received 941,241 complaints, resolving 935,081 (7,998 pending).
– UBA had 3,210,708 complaints, resolving 2,090,122 (1,120,907 pending).
– Zenith Bank recorded 203,787 complaints, resolving 202,384 (1,403 pending).
– Wema Bank handled 783,461 complaints, with
780,063 resolved (11,372 pending).

Experts Call for Stronger Regulation
Financial analysts urged the Central Bank of Nigeria (CBN) to tighten oversight, ensuring banks do not exploit customers with excessive charges.

Prof. Uche Uwaleke, President of the Capital Market Academics of Nigeria (CMAN), noted that high interest rates and naira depreciation boosted banks’ foreign-denominated assets. However, he criticized the widening gap between lending and savings rates, calling for CBN intervention to protect depositors.

Mr. Okechukwu Unegbu, former CIBN President, accused banks of imposing “illegal charges” and urged customers to challenge such practices legally. He also called on the Bank Customers Association of Nigeria (BCAN) to hold banks accountable.

Customers Speak Out**
Some bank customers shared frustrations over unresolved transaction issues:
– Mrs. Catherine Itoha (GTCO customer) claimed the bank failed to reverse N20,000 debited from failed PoS transactions for 11 months.
– Mr. Augustine Ode (Zenith Bank customer) appealed to the CBN to curb banks’ “excesses,” alleging unfair treatment.

While Nigerian banks continue to post record profits, concerns persist over customer service and transparency, prompting calls for stricter regulatory measures to ensure fairness in the banking sector.