Analysis of Banks Profitability: Domestic and Foreign Comparison

Abstract

Attempt at analyzing banks profitability informed this study. For sound and robust reviews of end report, the study took at comparing commercial banks across countries in Africa with emphasis on Nigeria, Ghana and South Africa owing to presumed position they occupy in the continent. To achieve its aims and from data provided by World Bank Group – International Monetary Funds, the study mirrored commercial banks profitability with total income (TI) hence, the dependent variable. The independent variables were proxied by total loan (TL) and customer deposits (CD). Data sets covers a ten (10) year period across cross –sections. Panel Autoregressive Distributed Lag (ARDL) regression of pooled ordinary least square, fixed effect model (FE) and random effect (REM) models, with Hausman Test of acceptance were specified. Similarly, Panel descriptive statistics and Panel Unit Rootstest were also tested and confirmed. Analysis was done with the aid of E-views statistical software v9. Results from the Panel ARDL finds Fixed Effect (FE) Model appropriate having taking into considerations the heterogeneity observations often not obseverded in the pooled ordinary least square and the randomnization effect in RE. By implication, findings indicate that total loan is statistically insignificant acorss sections showing a prob. 0.0714 with inverse correlation of 0.0169 while, customer deposit is statistically significant with a prob 0.000 and positive coefficient at 0.0480 as judged by the Hauman Test of 0.01 percent. However, the overall coefficient of determination shows high variability of close to one percent, while the model fitness is confirmed fit by F-statistic at 0.000. The study suggested conclusion is the provision of sound risk management via collaborative-business growth model for optimally banks benefit in the region.

Financial Sector Reform and Economic Development in Nigeria

“…Hence, a proportion increase in total savings to gross domestic product brings about a corresponding increase in human development indicator. Total savings contribution to gross domestic product could be regarded as a significant determinant of economic development in the short run, which is similar to findings by Babajide, Okunlola, Adedoyin, Okafor, and Isibor (2020c); Adeleye et al (2018); and Babajide (2012).…”

Effects of Financial Inclusion on Economic Growth, Poverty, Sustainability, and Financial Efficiency: Evidence from the G20 Countries

“…Whereas, Model 4, indicated that FII is not statistically significant in explaining GDP. However, the pitfalls inherent in PFE models, which [62,64,65] pointed out in their studies, informed taking a further examination of the significance of the variable by employing the randomization impacts using the PRE. Thus, what the PRE does is consider the heterogeneity, time-invariant, and individual country effect by allowing for the control of unseen heterogeneity through the general least squared method (GLS), where the error terms of observations are randomly distributed.…”

Business Sustainability Through E-Commerce: A Myth or Reality in Nigeria

“…Scanty literature between business sustainability and ecommerce in Nigeria exit. More so, the adoption of the concept is barely new and because of the nature of variables often generated, it makes empirical insight tasking than the mostly exploratory and case study approach often conducted by most researchers Saraswati et al (2022), Okunlola et al (2020), Babajide et al (2020b), Olah et al (2018); Jere et al (2014), Ayalew et al (2010).…”

“…As such, business has experienced oscillatory trends overtime in growth, expansion and sustainability at every stage introduction of a new technological innovation. In fact, it is recorded that barely five percent of companies rarely survive the first five years of its establishment (Okunlola et al, 2020a;Babajide et al, 2020).…”