Insider Business Service fees, commission the way for banks to increase revenue

Service fees, commission the way for banks to increase revenue

Banks are looking for ways to increase revenue and service fees and commission seem to be the way to improve their balance sheets.

Data for the first half of 2019 for Bank of Cyprus and Hellenic Bank and Alpha Bank’s 2018 annual results shows that revenue from service fees and commission remains relatively stable. Bank of Cyprus’ net income from fees and commission in the first half of 2019 was €75 million compared to €80 million in 2018.

Hellenic Bank’s net fees and commission income was €24.26 million in the first half of 2019 compared to €20.73 million in 2018. Alpha Bank Cyprus’ net fee and commission income was €6.94 million in 2018 compared to €6.19 million in 2017.

Based on Central Bank of Cyprus data, the overall banking system’s net fee and commission income in the first quarter of 2019 was €67.69 million compared to € 292.79 million in 2018. Net fees were €337 million in 2017 and €323.35 million in 2016.

In the meantime, bank managers are now in search of a new balance in their customer relationships. The goal is to enhance sources of profitability and limit the number of branches. That’s why they now charge even for simple and basic services such as cash withdrawals.

The two largest banks with the biggest market share – Bank of Cyprus and Hellenic Bank – are seeking to boost e-banking by significantly reducing transaction costs during a time of reduced revenue due to low interest rates and high salary costs.

As from June 2019, Bank of Cyprus already applied charges for various services and Hellenic Bank followed suit in September. These services are free via the bank’s website.


Read more:

Top Stories

36 new coronavirus cases detected out of 3,317 tests

The Ministry of Health has announced that 36 new cases of the SARS-CoV-II virus were detected in Cyprus over the past 24 hours out...

Emergency meeting regarding mass coronavirus cases detected in football teams to be held at Ministry of Health on Thursday

The Cypriot football scene is officially on alert. Positive coronavirus cases seem to be sprouting left, right, centre and generally multiplying before one can...

Ethnikos Achnas FC: number of now confirmed COVID-19 cases skyrockets to 17

Fears of a sharp increase in positive coronavirus cases in Ethnikos Achnas have been confirmed. As confirmed by an announcement by the team, a total...

Ethnikos Achnas FC: covid cases reportedly now in the double digits – match with Aris Lemesou postponed

Information about several positive cases of coronavirus detected in Ethnikos Achnas FC has been confirmed. The latest information indicates that the second diagnostic test the...

Additional covid measures in Larnaca in effect as of Thursday

The Government has announced new local measures concerning the coronavirus pandemic due to the outbreak observed in Larnaca the past few days. The Minister of...


Spicy grilled soutzoukakia

Place all ingredients for soutzoukakia in a bowl and mix well, preferably using a food processor, until well combined. Using the mixture, form cigar-shaped...


Pork souvlaki: Put the meat and all the other ingredients in a bowl (not metal) and mix well. Cover the bowl and keep in...

Pastelli (Carob Toffee)

The nutritional sweet of Pastelli is made with the syrup of carob pods, produced by boiling their pulp until it forms a thick, sticky...

Meatballs with tomato and cumin

Place all meatball ingredients in a bowl and knead well with hands. Keep the mixture in the fridge for approximately 1 hour to thicken. In...