Some bank customers and financial experts have called on banks to give commensurate returns or interests on their savings account following the declaration of huge profits by several banks in the country.
Some of the customers expressed regret that although some of these profits were made from their transactions, they were not getting the commensurate benefits from their banks.
Mrs Catherine Itoha, a customer of GTCO, said the bank had yet to reverse more than N20,000 debited from her account through various failed Point of Sale (PoS) transaction for about 11 months.
Itoha urged some banks and their staff to adopt principles of fair practice in handling their customers.
”Customers are the reason why banks are in existence, so we deserve to be treated fairly.
”GTB debited my account in about four different transactions that I did but up till now, they did not reverse any of these monies.
”I visited the bank, filled forms, spoke to their staff personally but still the issue was not resolved since last year.
”If this money did not go to a staff, it means it is part of their profit,” she alleged.
Mrs Dorathy Arthur, a Fidelity Bank customer alleged that some of the banks were making profits from charges on customers for their transactions.
Arthur described the situation as sad and frustrating
”I withdrew N10,000 from a First Bank Automated Teller Machine (ATM) and the machine showed me that I will be charged N100 because it wasn’t my bank.
”When I finished the transaction, to my greatest surprise an alert came into my phone and when I checked it, it was an.alert of N630.00 against the N100 on-site ATM charges that the Central Bank of Nigeria (CBN) instituted.
”This is so sad,” she said.
Mr Augustine Ode, a Zenith Bank customer, appealed to the CBN to check excesses of some banks which were allegedly defrauding customers and posting huge profits.
Another customer of GTCO, Ms Glory Eke, said the capitalised interest on her account was reduced drastically by the bank
”I usually get like N6,475.80 which was what I got for not withdrawing from the account in February but I was surprised that in March, I got N3,431.35 even though I didn’t withdraw from the account.
”The disparity is too much and this is not funny at all because I usually look forward to that interest every month.
”I have contacted the bank but they have not given me any cogent reason for that,” she said.
Reacting, financial experts urged the Central Bank of Nigeria (CBN) to step up their monitoring and supervisory roles to ensure that banks were not over-charging customers.
Prof. Uche Uwaleke, the President, Capital Market Academics of Nigeria (CMAN), told NAN that the CBN’s Monetary Policy Committee (MPC) enabled a number of banks to increase interest income.
Uwaleke said that interest income made lending rates to increase without commensurate increase in savings rates.
He said that other factors which led to growth in banks’ profits exchange rate, the depreciation of the Naira which made banks holding foreign denominated assets to benefit.
According to him, there is the issue of the banking sector recapitalisation which banks have been able to raise some money from the capital market and invested in Information Technology (IT) infrastructure.
”It is very true that a number of banks, especially the tier 1 banks, are declaring huge profits in spite the economic situation in the country. The reason is not far-fetched. If you recall, 2024 was characterised by a high interest rate environment.
”The economy is still experiencing weak growth and we see that in virtually all the sectors, particularly the risk sectors of the economy, manufacturing, agric did not really make any meaningful growth in 2024.
”But the services sector has powered growth and the banking sector is within the services sector.
“Now, how do we really bridge this disconnect, this gap between the financial sector and the risk sector and how do we also ensure that the bank customers also begin to have a feel of the fortunes of banks, if one might put it that way?
”The CBN needs to really monitor and supervise the banks to ensure that they are not overcharging the customers.
”I know there is the recommended bank charges by the CBN for banks, but it is important for the regulator to ensure that customers don’t bear the brunt of some of the inefficiencies we see from some banks,” he said.
Uwaleke said the CBN should also advise banks to increase savings rates in tandem with lending rates.
”It is also the duty of the CBN to ensure that whenever the policy rate is increased, as we saw in 2024, usually banks are quick to increase lending rates, but savings rates don’t usually respond by as much.
”So the CBN needs to advise the banks on the margin between savings and the lending rates that it shouldn’t exceed a particular limit.
”So it is important that savings rates increase in tandem with lending rates each time policy rates are increased,” he suggested.
The expert said that customers were also very important stakeholders in the banking business hence the need for the CBN to protect them.
Mr Okechukwu Unegbu, a former President of the Chartered Institute of Bankers of Nigeria (CIBN), said that banks usually initiate all forms of charges at the expense of their customers.
Unegbu regretted that some customers were reluctant about challenging their banks in the event of some ‘illegal’ charges.
”Banks charge all sorts even illegal charges and if customers complain they won’t respond because they feel that money is not much.
”Customers are docile too, they are sleeping, they should wake up and take these banks to court for some of these illegal charges.
“The customer will say for example, is it because of N50 that I am going to court.?
”It is not the N50 but the underlining principle and the bank’s are using this as a very good excuse to rip customers off their hard earned money.
”Charge N50 to 1,000 customers and see how much it is,” he said.
Unegbu called on Bank Customers Association of Nigeria (BCAN) to rise up to their responsibility by holding banks accountable for their ‘unfair’ actions to customers.
NAN reports that six banks posted N3.41 trillion as Profit After Tax (PAT) for the year 2024 ended as against the N2.1 trillion recorded in 2023 financial year.
The banks are Zenith Bank Plc, United Bank for Africa (UBA) Plc, GTCO, Wema Bank Plc, Fidelity Bank Plc an Stanbic IBTC Holdings Plc.
The banks attributed their profit to equity holders, non-controlling interests, earning per share (basic and diluted), among others.
