Digital Banking and Financial Performance Review
OPEX
In billions of Naira
Depreciation and Amortization
AMCON Expenses
Occupancy Costs and Repairs & Maintenance
Deposit Insurance Premium
General welfare Expenses
Customer Service Related Expenses
Communication, Tech. related & Admin. Expenses
Advert, Promotion and Corporate Gifts
Personnel Expense
OPEX Drivers
Group
FY 2022
Group
FY 2021
Change (Y-o-Y) % Change (Y-o-Y)
35.27
35.26
0.1
0.0%
23.29
21.89
1.40
6%
9.12
5.01
4.15
83%
14.40
12.24
2.16
17.6%
11.51
6.54
4.97
76%
4.07
1.74
2.33
133.7%
30.9
18.5
12.4
67%
7.25
5.84
1.41
24%
36.08
33.43
2.65
8%
The Group recorded a 21.6% increase in OPEX from #161.72bn in FY-2021 to #196.59bn in FY-2022, with non-controllable cost mix improving to 54.3% of the total Operating
Expenses recorded in FY-2022- from 63.4% in FY-2021. The key Opex growth drivers are as follows:
a. Increase in regulatory charges i.e., AMCON Levy and Deposit Insurance Premium. AMCON levy increased by 6.4% to N23.29bn from N21.89bn due to growth in the underlying
Total Asset and Contingents Base at the Bank level to N4.66tn in FY 2021 from N4.37tn in FY 2020 (AMCON levy is computed as 0.5% on preceding year's Total Asset and
Contingents base). Also, Deposit Insurance premium increased by 17.6% (N14.23bn in FY-2022 vs N12.1bn in FY-2021) due to a 14.3% increase in underlying Customers' Deposits
volume to N4.01tn in FY- 2021 from N3.51tn in FY 2020 (Deposit Insurance Premium is calculated on preceding year's Customers' Deposits).
b. 83% growth in Occupancy Costs, Repairs & Maintenance and Advert and promotions from a cumulative total of #9.12bn in FY-2022 vs #5.01bn in FY-2021 resulting from the
increase in expenses relating to Diesel, Fuel and general maintenance as well ground rates and water rates.
c. 39.3% growth in Administrative Expenses at the Bank level was due to the impact of rising inflation, increased operational cost and the translation impact of Subsidiaries'
OPEX balances to Naira on the weaker Naira/US$ conversion.
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