The total expenses of eight Nigerian banks soared to N4.61 trillion in 2024, driven by increases in both personnel and operating costs.
The data reveals a 107.8 per cent rise from N2.2 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.
In the period under review, First HoldCo Plc reported a total of N568.3 billion in operating expenses, up from N341.5 billion in 2023, reflecting a 66.4 per cent increase year-on-year. Personnel expenses for the group stood at N308.5 billion, marking a significant surge from N175.9 billion in 2023, a growth of 75.3 per cent.
Fidelity Bank Plc saw its total operating expenses increase to N242.7 billion from N135.3 billion in 2023, representing a 79.3 per cent rise. Personnel expenses rose to N73.5 billion, compared to N52.6 billion in 2023, reflecting a 39.6 per cent increase.
For United Bank for Africa Plc, the bank’s operating expenses rose to N682.9 billion, an increase from N372.8 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 N259.6 billion from N166.2 billion in 2023, reflecting a 56.2 per cent increase. Personnel expenses for the group hit N85.4 billion, more than doubling from N45.1 billion in the previous year, a 89.3 per cent increase.
Zenith Bank Plc experienced an increase in operating expenses to N586.6 billion, up from N291.7 billion in 2023, representing an 101.1 per cent rise. Personnel expenses for Zenith Bank stood at N204.2 billion, compared to N124.4 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 N77.5 billion from N45.9 billion in 2023, marking a 68.9 per cent rise. Personnel expenses stood at N45.5 billion, a 70.3 per cent increase from the previous year’s N26.8 billion.
At FCMB Group Plc, operating expenses surged to N48.3bn, an increase from N32.7 billion in 2023, reflecting a 47.8 per cent rise. Personnel expenses for FCMB grew to N79.3 billion, up from N49.6 billion in 2023, a growth of 59.9 per cent.
Finally, Access Holdings Plc reported N960.8 billion in operating expenses, up from N465.7 billion in 2023, a 106.3 per cent increase.
Personnel expenses stood at N381.4 billion, a sharp rise from N167.9 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 N3.23 trillion in 2023 compared to N2.26 trillion in the previous year.
