A total of nine Nigerian banks spent N23 billion on business travel in the year 2021, according to data collated from the banks’ financial reports. The amount includes the cost of travel, hotel, passage and any other logistics related to travel inside and outside the country.
The banks are Access Bank, Fidelity Bank, Sterling Bank, United Bank for Africa, Zenith Bank, GTBank, Stanbic IBTC, FirstBank and FCMB.
According to the analysis, the amount spent during the period is 15% higher than the N20 billion spent by banks on travel the previous year (2020). The increase seen in 2021 could be attributed to the ease of containment and the resumption of economic activities locally and internationally compared to 2020, when travel was restricted due to the global pandemic.
Of the total, tier one banks, Access Bank, UBA, Zenith, First Bank and GTBank contributed N21 billion, accounting for 91% of the total business travel amount.
Nairametrics highlights the amount spent by banks in order of amount spent as follows;
Fidelity Bank spent N897 million on travel expenses in 2021. The amount reflects a 7% drop from the amount it recorded in the same period the year before at N964 million.
Fidelity Bank saw its gross profit improve in 2021 from N206 billion to N249 billion. Hence, profit for the period reflected this as it also improved from N27 billion in the pandemic year to N38 billion in the recovery year.
Zenith Bank comes next on the list, recording N2.6 billion in travel and hotel expenses, which is a 40% increase from the amount during the Covid period.
In its financial statements for the year 2021, the bank reported an after-tax profit of N244.5 billion, the highest on record, and reflects a 6.07% year-on-year increase. This is explained by the observed growth in interest income from N420.81 billion to N427.60 billion in the current period.
The First Bank of Nigeria spent 4.2 billion naira on travel and passage in 2021, a 21% increase from the 3.5 billion naira recorded in 2021.
The bank reported after-tax profit of N117.8 billion in 2021, up 73.9% year-on-year from N67.8 billion in 2020, while its pre-tax profit was 130, 9 billion naira, up 77.9% year-on-year from 73.6 billion naira in 2020. .
During the year, the bank’s non-interest income increased by 106.4% to N342.2 billion from N165.8 billion thanks to higher fees and commissions, treasury activities and other operating income. Similarly, it reported gross profit of N716.8 billion, up 30.3% year-on-year from the N550.3 billion posted in 2020.
UBA is the second largest corporate travel spender. The bank recorded a total of 5 billion naira, which represents 28% of the total amount spent by the highlighted banks. The amount is also up slightly by 5% compared to the amount spent in 2020 for the same purpose.
The bank recorded a robust growth of 20.3% in its pre-tax profit to N153.1 billion in 2021, from N127.3 billion at the end of the 2020 financial year, while its post-tax profits increased. increased by 8.7% to reach 118.7 billion naira in 2021, compared to 109.2 billion naira recorded the previous year.
Access Bank spent the most on travel expenses in 2021 with N8 billion. The amount spent during the period is 36% of the total amount spent by the nine banks and also represents a 16% increase from the 7.1 billion naira spent for the same purpose in the pandemic year.
The bank recorded a profit of N160 billion in 2021, an increase of 51.13% year on year, while its net interest income increased by 14.64% from N262.95 billion to N301.46 billion in the current period.
A quick look at the data shows that the bank retains the top spot as the biggest spender on travel expenses. Last year, it topped the list followed by UBA which recorded N4.94 billion.
This reinforces the bank’s commitment to maintaining international ties while extending its tentacle to reach all over the world. The bank is headquartered in Nigeria along with Ghana, Kenya, other African countries as well as the UK and has recently expanded to Botswana, Mozambique, South Africa and Zambia.
- FCMB – 564 million naira
- GT Bank – N483 million
- Sterling Bank – N415 million
- Stanbic’s IBTC – N255 million