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In the first nine months of 2023, Access Holdings and FBN Holdings had the highest staff salary expenditures when compared to other deposit money banks, according to a BusinessDay investigation.
The personnel costs of Access Holdings jumped to N117.6 billion in the nine months from N89.8 billion in the same period of 2022, while those of FBN increased to N113.2 billion from N84.9 billion, per the most recent financial statements of 11 banks listed on the Nigerian Exchange Limited.
All of a company's costs associated with employee compensation and benefits within a given financial reporting period are included in personnel expenses. These expenditures could include pay and perks including pensions, health insurance, and training.
After more examination of the financial statements, it was discovered that Zenith, Stanbic IBTC Holdings, Guaranty Trust Holding Company (GTCO), and FCMB Group had the next highest amounts, at N88.4 billion, N45.9 billion, N37.6 billion, and N34.0 billion, respectively, behind the United Bank of Africa (UBA), which came in third place with N111.1 billion.
The remaining ones are Unity (N10.3 billion), Fidelity (N30.3 billion), Wema (N19.0 billion), and Sterling Financial Holdings (N16.3 billion).
Over the course of a year, the banks' overall personnel expenses increased by 33%. The largest year-over-year growth rates were 43.9 percent and 37.6 percent for Zenith Bank and UBA, respectively.
Research economist Israel Odubola of Lagos stated that certain banks decided to raise staff charges in order to protect their human resources from the impact of the cost of living problem.
"And it is anticipated that they will provide for their employees during this trying time, given that they reported higher profits in the second quarter."
Consumers with limited resources now face higher living expenses as a result of Federal Government measures enacted in the second quarter of last year, including the elimination of the gasoline subsidy and the devaluation of the naira.
The nation's overall price level, or inflation rate, reached an 18-year high of 28.20 percent in November from 27.33 percent the month before, as reported by the National Bureau of Statistics.
Due to rising transportation costs, a lot of workers are obliged to set aside a sizeable amount of their pay for transportation, which leaves little for other necessities like food and housing.
Due to this action, several banks increased salaries and pay and reevaluated their benefits for employees. Union Bank, Wema, Zenith, GTCO, and UBA were a few of the banks.
To assist its junior and contract employees in meeting the rising expense of living, GTCO stated in June that its salaries would be increasing. The company-wide pay increase for all employees would be implemented, Zenith said the following month.
In the same month, UBA said that its board of directors had promptly adjusted the staff's cost of living.
Due to the ongoing economic difficulties, the bank has already imposed a cost of living adjustment for employees on October 1, 2021, and April 1.
“We are aware of the impact of recent economic policy pronouncements on prices and your capacity to meet your financial commitments to family and personal needs,” Oliver Alawuba, chief executive officer at UBA, said.
“As an organisation focused on the well-being of our people, I am pleased to inform you that the Board of UBA Plc has approved a Welfare Allowance for all employees,” he added.
In addition to GTCO and Zenith, Fidelity also put additional staff buses into service to lessen the workload associated with employee commuting.
Zenith Bank
Personnel costs at Zenith Bank increased from N61.5 billion to N88.4 billion, a 43.9 percent increase. From N620.6 million to N1.33 trillion, gross earnings increased. From N174.33 billion to N434.17 billion, profit after taxes increased.
UBA
Personal spending at the bank went from N80.77 billion to N111.11 billion, a 37.6% rise. From N282.51 billion to N443.08 billion, net interest income increased. The profit for the time period increased from N116.04 billion to N449.3 billion.
Fidelity Bank
Personnel costs at Fidelity Bank went from N22.15 billion to N30.31 billion, a 36.8% rise. Gross profits increased from N241.89 billion to N388.79 billion. The period's profit increased from N34.96 billion to N91.75 billion.
FCMB Group
Stanbic IBTC Holdings
Stanbic IBTC Holdings’ staff costs increased by 23.4 percent to N45.99 billion from N37.27 billion.
Net interest income grew to N120.5 billion from N79.66 billion. Profit for the period increased to N109.25 billion from N55.19 billion.
GTCO
The staff expenses of GTCO increased from N30.54 billion to N37.58 billion, a 23.1 percent increase.
From N189.69 billion to N297.54 billion, net interest income increased. The period's profit increased from N130.35 billion to N367.42 billion.
Unity Bank
Personnel costs at Unity Bank increased from N8.46 billion to N10.34 billion, a 22.2 percent increase.
From N14.53 billion to N9.47 billion, net interest income fell. From a profit after tax of N2.03 trillion, the bank reported a loss of N47.92 trillion.
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