The total expenses of eight Nigerian banks soared to ₦4.61 trillion in 2024, driven by increases in both personnel and operating costs.
The data reveals a 107.8 per cent rise from ₦2.2 trillion in 2023, highlighting the growing financial pressure on the banking sector.
This was based on the annual results of the financial institutions filed with the Nigerian Exchange Limited for the period ended December 2024, The PUNCH reports.
In the period under review, First HoldCo Plc reported a total of ₦568.3 billion in operating expenses, up from ₦341.5 billion in 2023, reflecting a 66.4 per cent increase year-on-year. Personnel expenses for the group stood at ₦308.5 billion, marking a significant surge from ₦175.9 billion in 2023, a growth of 75.3 per cent.
Fidelity Bank Plc saw its total operating expenses increase to ₦242.7 billion from ₦135.3 billion in 2023, representing a 79.3 per cent rise. Personnel expenses rose to ₦73.5 billion, compared to ₦52.6 billion in 2023, reflecting a 39.6 per cent increase.
For United Bank for Africa Plc, the bank’s operating expenses rose to ₦682.9 billion, an increase from ₦372.8 billion in 2023, reflecting an 83.2 per cent jump.
Guaranty Trust Holding Company reported a sharp rise in its operating expenses, which surged to ₦259.6 billion from ₦166.2 billion in 2023, reflecting a 56.2 per cent increase. Personnel expenses for the group hit ₦85.4 billion, more than doubling from ₦45.1 billion in the previous year, a 89.3 per cent increase.
Zenith Bank Plc experienced an increase in operating expenses to ₦586.6 billion, up from ₦291.7 billion in 2023, representing an 101.1 per cent rise. Personnel expenses for Zenith Bank stood at ₦204.2 billion, compared to ₦124.4 billion in 2023, an increase of 64.2 per cent.
Wema Bank also recorded a significant rise in both operating expenses and personnel expenses, which surged to ₦77.5 billion from ₦45.9 billion in 2023, marking a 68.9 per cent rise. Personnel expenses stood at ₦45.5 billion, a 70.3 per cent increase from the previous year’s ₦26.8 billion.
At FCMB Group Plc, operating expenses surged to ₦48.3 billion, an increase from ₦32.7 billion in 2023, reflecting a 47.8 per cent rise. Personnel expenses for FCMB grew to ₦79.3 billion, up from ₦49.6 billion in 2023, a growth of 59.9 per cent.
Finally, Access Holdings Plc reported ₦960.8 billion in operating expenses, up from ₦465.7 billion in 2023, a 106.3 per cent increase.
Personnel expenses stood at ₦381.4 billion, a sharp rise from ₦167.9 billion the previous year, showing a 127.5 per cent increase.
The PUNCH reported that the combined operating expenses of 10 Nigerian banks rose by 42.51 per cent to ₦3.23 trillion in 2023 compared to ₦2.26 trillion in the previous year.