The combined operating expenses of 10 Nigerian banks rose by 42.51 per cent to N3.23tn in 2023 compared to N2.26tn in the previous year.
This is based on the financial institution’s annual reports submitted to the Nigerian Exchange Limited, according to The Punch.
Access Holding, FBN Holdings, Zenith Bank, United Bank for Africa, FCMB Group, Sterling Finance Limited, Fidelity Bank, Wema Bank, Stanbic IBTC, and Guaranty Trust Company are among the banking institutions examined.
Operating expenses typically encompass various costs incurred by a company in their day-to-day operations, including rent, equipment, inventory costs, marketing, staff expenses, insurance, step costs, funds allocated for research and development, depreciation and amortisation, and any other expenses related to the day to day operations of a firm.
The main drivers for the increase in lenders’ operating expenses were staff costs and other operational expenditures in 2023.
During this period, the operating costs of Nigeria’s largest bank AccessCorp increased by 38.85 per cent to N.697.53 billion from N502.36 billion in 2022.
Explaining the increase, Holdco stated that due to an increase in wages and salaries, it increased its staff cost by 43.97 % to N167.90 billion from N116.62 million.
IT and e-business expenses also had a combined operating expenses of N465.67bn.
The depreciation and amortisation costs of AccessCorp amounted to N63.96 billion.
FBN Holdings’ unaudited results revealed that operating expenses jumped by 46.83 per cent to N534.34bn in 2023.
The FCMB Group’s operating expenses increased by 35.64 per cent to N154.44 billion, driven by higher staff costs, in its unaudited financial statements for the year 2023.
According to the provisional financial statements for 2023 of Sterling Financial Holdings and its subsidiaries, their overall expenses increased by 25.26 % to N109.24 billion.
Fidelity Bank’s operating expenses increased by 60.77 % to N194,18 billion from N120,78 billion in the previous financial year.
In addition, Wema Bank’s operating expenses increased by 32.16 % to N.78.76 billion as it registered a profit before tax growth of 196% to N43.59 billion in 2023.
Similarly on the back of staff and additional operating expenses, GTCO’s operational costs increased by 26.35 per cent to N250.42bn.
In its newly published annual report, Zenith Bank Plc stated that its operating expenses increased by 32.31 % to N449.47 billion from N350.09 billion in the previous year, while UBA increased its operating expenses by 68.99% to N591.64 billion from N350.09 billion in the previous year.
