Depositors’ funds in Access, Zenith bank hit 5.07trn in 2016

On the heels of macro economy challenges that include hike in inflation rate, Zenith Bank Plc and Access Bank Plc generated a whopping N5.07 trillion through customers deposit in 2016.

Both financial institutions deposit from customers had closed 2015 at N4.2 trillion, representing a growth of 19.6 per cent from N5.07 trillion generated in 2016.

Finance experts had predicted that the harsh economic conditions facing the country have led to a drastic reduction in customers’ deposits in banks.

However, the two lenders recorded significant increase in their customers’ deposit. For instance, Access Bank gained 24 per cent to N2.089 trillion in 2016 as against N1.68 trillion in 2015 while Zenith Bank customers deposit gained 16.6 per cent from N2.6 trillion to N2.98 trillion in 2016.

Checks by Business Times note that Zenith Bank customers deposits on its saving account gained 46 per cent from N246 billion in 2015 to N358 billion in 2016 while customers deposit on its Domiciliary accounts appreciated by 28.2 per cent to N605.98 billion as against N472.8 billion recorded in 2015.

Furthermore on Zenith Bank customers deposits shows that those on Demand account contributed 49 per cent to its customers deposit in 2016.

The lender’s Demand deposits gained 14.1 per cent to close 2016 at N1.46 trillion from N1.28 trillion in 2015 while those on Term deposits dropped by 0.14 per cent from N556 billion to N555.5 billion recorded in 2016.

Zenith Bank had explained that, “The bank will continue to grow its retail business especially in liability generation. This will be achieved through the deployment of innovative products in mobile banking, internet banking and cards services.

The capturing of bio-data of all bank’s customers across the industry into a single data base has also boosted our retail banking business. Each customer now has a unique Biometric Verification Number (BVN) and this has helped to reduce fraud in the banking system.

“Our drive for low cost and appropriately mixed deposit base to fund our credit and money market transactions would continue in FY2016. We are committed to be a dominant player in the money market space to drive up income and profitability going forward.

Access Bank’s savings deposits from customers gained nearly 30 per cent from N137.96 billion to N179 billion in 2016. Also, the financial institution recorded a growth of 17.3 per cent increase in Demand deposits to N984 billion as against N838.95 billion in 2015.

In addition to Access Bank deposits from customers, its term deposits grew by 31 per cent to N925.98 billion as against N706 billion recorded in 2015.

Access Bank money market deposits gained 137 per cent to N85 billion from N35.9 billion in 2015.

The Bank said, “Increase in customer deposits for foreign exchange is attributable to the change in the Bank’s process which requires all customers with foreign currency obligations to deposit foreign currency to back these transactions due to the prevailing foreign exchange environment.”