Diamond Bank’s Staff Are The Best Paid in Nigerian Banking Industry

Diamond Bank’s staff are the best paid in the Nigerian banking industry. This is based on the proportion of their staff that receive an average salary of N4 million per annum, which is about the median pay in the Nigerian banking industry.

An average of 66 per cent of Diamond Bank staff earn about N4 million per annum, which comes to N10, 958 per day. These figures are based on the bank’s 2010 annual report and the comparative analysis is published in the latest edition of the Nigerian bank’s financial transparency report, a joint publication of BusinsssDay and Source Capital Research.

The report shows that Zenith Bank and GTBank tied second in terms of proportion of staff earning more than N4 million and above, with an average of 55 per cent of both banks staff earning above that amount per annum.

Sterling Bank comes a close fourth, with an average of 53 per cent of the bank’s staff earning above N4 million per annum, while Access Bank ranks fifth with an average of 48 per cent of its staff earning above N4 million per annum.

No staff of Wema Bank, based on the report, earns above N4 million per annum, making it the least paying bank in Nigerian, while UBA ranks second least paying bank with just 21 per cent of the bank staff earning above N4 million per annum.

Interestingly, when the banks are ranked based on the proportion of operating expense spent on their staff, the low paying banks rank high, while the high paying banks rank low. In terms of proportion of operating expense paid to staff, Unity Bank tops with an average of 50 per cent of its operating expense spent on staff despite ranking ninth on proportion of staff earning above N4 million and above, per annum.

Fidelity Bank also ranks second in terms of the proportion of operating expense spent on staff, with 49 per cent of the bank’s operating expense spent on staff, while Wema Bank which has no staff earning above N4 million per annum spends an average of 46 per cent of its operating expense on staff.

Wema Bank also has the highest operating expense to earning s ratio of 96 per cent while GTBank has the lowest operating expense to earnings ratio of 41 per cent. Operating expense refers to the cost of running the bank’s operations and usually has a significant impact on bank’s profitability.

When banks are ranked in terms of actual wage bill paid to staff on a yearly basis, First Bank tops the ranking with annual wage bill of N52.14 billion in 2010. UBA ranks second with an annual wage bill of N37.91 billion while Zenith Bank ranked third with annual wage bill of N34.19 billion in 2010. Sterling Bank had the lowest wage bill of N4.82 billion followed by Wema Bank with a wage bill of N9.65 billion.

UBA ranks number one when banks are ranked in terms of the number of staff employed with the bank having 12,891 staff on its pay roll. First Bank ranks second in the number of staff employed with 8,154 staff on its pay roll while Zenith Bank ranks third with staff strength of 8,021. Sterling Bank has the least number of staff with staff strength of just 1,600 while Access Bank ranks next with the lowest number of staff with staff strength of 1,754.

These figures and charts are in the latest edition of the Nigeria Banks Transparency report which also ranked banks on the basis of corporate governance and risk management disclosure in their published financial reports.

Via BusinessDay