Nigeria's banking industry generated N224.69 billion from electronic banking services and ATM/card-related charges in the first quarter of 2026, reflecting the growing reliance on digital financial services across the country. An analysis of the unaudited financial results of 11 listed banks showed that earnings from these services rose by 12.56 per cent compared to the N199.61 billion recorded during the same period in 2025.
The increase highlights the expanding use of digital banking platforms, mobile applications, online transactions, and card-based payment services, which continue to contribute significantly to banks' non-interest revenue streams. Overall, income from electronic banking channels and card services increased by N25.06 billion year-on-year.
Digital Channels Drive Revenue Growth
A closer look at the figures revealed that revenue from electronic banking and e-business activities climbed by 11.57 per cent to N177.97 billion, up from N159.52 billion recorded in the first quarter of 2025. Earnings from ATM and card management fees also posted strong growth, rising by 16.48 per cent to N46.70 billion from N40.09 billion in the previous year.
The growth in digital banking income came alongside broader increases in banking sector charges and commissions. Combined fee and commission income earned by the 11 lenders rose by 13.64 per cent to N984.47 billion, while account maintenance fees increased by 14.07 per cent to N209.18 billion during the review period.
Among the banks surveyed, Access Holdings emerged as the largest earner from digital banking services, generating N55.71 billion. UBA followed with N46.93 billion in electronic banking income, while Ecobank recorded N35.53 billion from card management fees. GTCO earned N21.90 billion from e-business activities, while Zenith Bank generated N21.54 billion through electronic product charges.
Other contributors included First Holdco with N20.75 billion, Wema Bank with N6.10 billion, Fidelity Bank with N8.81 billion from ATM charges and electronic banking commissions, Stanbic IBTC with N4.33 billion, Sterling Financial Holdings with N2.89 billion, and Jaiz Bank with N187.05 million.
Fidelity Bank Leads Growth Race
Fidelity Bank recorded the strongest growth in digital banking-related income among the lenders reviewed. Its earnings from ATM charges and electronic banking commissions surged by 164.9 per cent to N8.81 billion from N3.08 billion a year earlier, largely driven by a sharp increase in ATM-related charges.
GTCO also posted impressive growth, with e-business income rising by 68.64 per cent to N21.90 billion. Zenith Bank's electronic product fees increased by 58.91 per cent, while Stanbic IBTC's combined card and electronic banking income grew by 52.8 per cent. Sterling Financial Holdings and Access Holdings also recorded notable gains of 22.15 per cent and 15.2 per cent respectively.
However, not all banks experienced growth. Wema Bank reported the steepest decline, with revenue from electronic product fees falling by more than 50 per cent. UBA, Ecobank, and Stanbic IBTC also recorded slight declines in some digital banking income categories.
Digital Banking Becomes a Major Profit Source
The report showed that digital banking services now account for a significant share of banks' fee-based earnings. At Access Holdings, digital channels contributed over 27 per cent of total fee and commission income, while GTCO derived a similar proportion from e-business services.
For UBA, electronic banking generated nearly 38 per cent of total fee income, making it the bank's largest single source of fee revenue. Zenith Bank, First Holdco, Wema Bank, Ecobank, and Sterling Financial Holdings also relied heavily on digital channels to support earnings.
Industry analysts attribute the strong performance to improving economic activity and rising demand for electronic transactions. Recent data from the Stanbic IBTC Purchasing Managers' Index showed that Nigeria's private sector expanded to a nine-month high in May 2026, supported by stronger consumer demand, higher output levels, and improved business conditions.
The trend also aligns with ongoing reforms by the Central Bank of Nigeria, including banking sector recapitalisation and efforts to stabilise the foreign exchange market, which regulators believe will strengthen financial institutions and position them for long-term growth.
