By Monsurat Abisoye
Nigerian banks generated N224.69bn from electronic banking services and ATM/card-related charges in the first quarter of 2026, reflecting the continued growth of digital banking adoption across the country.
An analysis of the unaudited financial statements of 11 listed lenders showed that revenue from electronic banking channels rose by 12.56 per cent from N199.61bn recorded in the corresponding period of 2025.
The increase translated to an additional N25.06bn earned year-on-year, with income from electronic banking and e-business activities rising by 11.57 per cent to N177.97bn, compared with N159.52bn in Q1 2025.
Earnings from ATM and card management fees also recorded significant growth, increasing by 16.48 per cent to N46.70bn from N40.09bn during the same period.
The rise in digital banking revenue came alongside broader growth in banks’ fee-based earnings. Total fee and commission income generated by the 11 lenders increased by 13.64 per cent to N984.47bn from N866.30bn, while account maintenance fees climbed by 14.07 per cent to N209.18bn from N183.37bn.
Among the banks reviewed, Access Holdings posted the highest income from e-banking services, generating N55.71bn in Q1 2026. UBA followed with N46.93bn, while Ecobank earned N35.53bn from card management fees. GTCO recorded N21.90bn in e-business income, and Zenith Bank generated N21.54bn from electronic product fees.
First Holdco earned N20.75bn from electronic banking activities, Wema Bank recorded N6.10bn, while Fidelity Bank generated a combined N8.81bn from ATM charges and e-banking commissions. Stanbic IBTC earned N4.33bn from card-based commissions and electronic banking fees, Sterling Financial Holdings posted N2.89bn, and Jaiz Bank recorded N187.05m.
In terms of growth rates, Fidelity Bank experienced the strongest expansion in digital banking income. The lender’s combined ATM charges and e-banking commissions surged by 164.9 per cent to N8.81bn from N3.08bn in Q1 2025, supported largely by a 240.8 per cent increase in ATM-related charges.
GTCO reported a 68.64 per cent rise in e-business income to N21.90bn from N12.99bn, while Stanbic IBTC’s combined card-based commission and electronic banking revenue increased by 52.8 per cent to N4.33bn. Zenith Bank’s electronic product fees also rose by 58.91 per cent to N21.54bn.
Sterling Financial Holdings recorded a 22.15 per cent increase in e-business commissions and fees, while Access Holdings posted a 15.2 per cent rise in channels and e-business income to N55.71bn.
However, some banks reported declines in digital banking earnings. Wema Bank recorded the steepest drop, with electronic product fees falling by 50.68 per cent to N6.10bn from N12.37bn. Stanbic IBTC’s electronic banking fees declined by 20.57 per cent to N865m, while UBA’s electronic banking income dipped slightly by 1.91 per cent to N46.93bn. Ecobank also reported a marginal 1.52 per cent decline in card management fees to N35.53bn.
Further analysis showed that digital banking remained a major contributor to banks’ fee income. At Access Holdings, e-banking revenue accounted for 27.2 per cent of its total fee and commission earnings of N205.03bn. GTCO derived 27.27 per cent of its N80.31bn fee income from e-business services.
UBA generated 37.82 per cent of its N124.07bn fee and commission earnings from electronic banking, making it the bank’s largest source of fee income. First Holdco derived 21.59 per cent of its fee income from electronic banking services, while Zenith Bank earned 25.4 per cent of its fee revenue from electronic product fees.
Ecobank’s card management fees represented 14.94 per cent of total fee income, while Wema Bank’s electronic product fees accounted for 35.08 per cent despite the decline recorded during the quarter. Stanbic IBTC’s combined digital banking income contributed 5.21 per cent of its total fee earnings. In comparison, Sterling Financial Holdings generated 17.13 per cent of its fee income from e-business commissions and fees.
Analysts linked the strong performance in digital banking revenue to improving economic conditions. Nigeria’s private sector expanded to a nine-month high in May 2026, with the Stanbic IBTC Purchasing Managers’ Index rising to 54.1 points, supported by stronger demand, increased output, and improved logistics.
The trend also coincided with ongoing reforms in the banking sector. Earlier in the year, the Central Bank of Nigeria stated that measures such as the banking recapitalisation programme and efforts to stabilise the foreign exchange market were strengthening the economy’s foundations and enhancing banks’ capacity to support long-term growth.