An Empirical Assessment Of The Determinants Of Profitability In Nigerian Commercial Banks (A Case Study Of First Bank Nig Plc):- Anthony, Nneoma G.
ABSTRACT
This study seeks to determine the significant
internal or endogenous determinants of commercial bank profitability. Using a
data set which ranges from 2006-2010 derived from First bank Nigeria pic annual
report and five years financial summary, the regression result reveals that
Total assets (size), Total equity to total asset (CAR) and Total loans and
advances to total assets (Assets composition) are the important endogenous
determinants ofthe profitability of commercial banks in Nigeria. These
endogenous determinants have a strong positive relationship with the dependent
variable (ROAA i.e. profitability). This study suggests that Nigerian banks
should endeavor to adequately manage their liquidity and profitability trade-offs
while diversifying their asset in order to remain profitable and sustainable.
However, further research is needed to clear the grey areas especially over a
longer period of time. In addition variables such as cost efficiency, credit
risk, and exogenous factors such as inflation, GDP and market concentration
could also be incorporated to ascertain the determinants of bank profitability
in Nigeria.
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ANTHONY, G (2023). An Empirical Assessment Of The Determinants Of Profitability In Nigerian Commercial Banks (A Case Study Of First Bank Nig Plc):- Anthony, Nneoma G.. Repository.mouau.edu.ng: Retrieved Apr 27, 2024, from https://repository.mouau.edu.ng/work/view/an-empirical-assessment-of-the-determinants-of-profitability-in-nigerian-commercial-banks-a-case-study-of-first-bank-nig-plc-anthony-nneoma-g-7-2
GLORY, ANTHONY. "An Empirical Assessment Of The Determinants Of Profitability In Nigerian Commercial Banks (A Case Study Of First Bank Nig Plc):- Anthony, Nneoma G." Repository.mouau.edu.ng. Repository.mouau.edu.ng, 20 Dec. 2023, https://repository.mouau.edu.ng/work/view/an-empirical-assessment-of-the-determinants-of-profitability-in-nigerian-commercial-banks-a-case-study-of-first-bank-nig-plc-anthony-nneoma-g-7-2. Accessed 27 Apr. 2024.
GLORY, ANTHONY. "An Empirical Assessment Of The Determinants Of Profitability In Nigerian Commercial Banks (A Case Study Of First Bank Nig Plc):- Anthony, Nneoma G.". Repository.mouau.edu.ng, Repository.mouau.edu.ng, 20 Dec. 2023. Web. 27 Apr. 2024. < https://repository.mouau.edu.ng/work/view/an-empirical-assessment-of-the-determinants-of-profitability-in-nigerian-commercial-banks-a-case-study-of-first-bank-nig-plc-anthony-nneoma-g-7-2 >.
GLORY, ANTHONY. "An Empirical Assessment Of The Determinants Of Profitability In Nigerian Commercial Banks (A Case Study Of First Bank Nig Plc):- Anthony, Nneoma G." Repository.mouau.edu.ng (2023). Accessed 27 Apr. 2024. https://repository.mouau.edu.ng/work/view/an-empirical-assessment-of-the-determinants-of-profitability-in-nigerian-commercial-banks-a-case-study-of-first-bank-nig-plc-anthony-nneoma-g-7-2