Nairametrics gathered information on banks that incurred the highest personnel expenses in 2020.
One of the crucial roles of an organisation’s leadership is the management of its human capital. This is because the people who work for an organisation are responsible for producing economic value and ultimately building the wealth of shareholders.
In 2020, the banking sector was one of the few sectors that experienced remarkable profitability. Despite the retrenchment of workers and the cut in employee-related expenses in the Nigerian corporate space in the same year, most of the listed banks under our radar were able to increase their personnel cost with the exemption of Access Bank, Union Bank, FCMB, Sterling, and Wema Bank.
Using the publicly available information of listed banks, Nairametrics gathered information on banks that incurred the highest personnel expenses in 2020 and analysed the structure of these expenses. It is worth noting that personnel expenses include wages and salaries of employees, pension contributions, and other staff costs.
According to the data, the thirteen banks under our watch spent a total of N551.89 billion on employee cost in 2020, representing a 3.37% increase compared to N533.91 billion recorded in the previous year.
Stanbic IBTC followed Access Bank in personnel expenditure as the international bank spent a total of N42.1 billion (+3.4%) on its employees in 2020. The total number of employees increased marginally from 2,936 employees in 2019 to 2,972 employees in 2020.
Nigeria’s largest bank by asset value spent a total of N73.2 billion on its employees in 2020. This is however a reduction of 4.9% from the N76.96 billion spent in 2019.
Zenith Bank, which recorded the highest profit after tax in 2020 came in third in terms of personnel expenses in the same year. Zenith Bank spent N79.3 billion as personnel expenses in 2020, a marginal increase of 1.8% from N75.1 billion spent in 2019.
UBA followed with a total personnel cost of N87.5 billion in 2020 from N75.1 billion in 2019. However, the number of employees in the bank declined by 2,420 to stand at 10,817 personnel.
FBN Holdings spent the highest on personnel expenses in 2020, increasing its staff cost by 4.91%, from N95.9 billion in 2019 to N100.6 billion at the end of 2020. With a total staff strength of 8,341, the Group had a personnel cost per employee of N12.1 million in 2020.