Research Articles in Business Administration

Permanent URI for this collectionhttps://repository.nileuniversity.edu.ng/handle/123456789/105

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Subject: search.filters.subject.Profitability

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    The Impact Of Liquidity Risk On Profitability Of Listed Deposit Money Banks In Nigeria
    (International Journal of Professional Bussiness Review, 2024-02-02) Abiona Jeremiah Olofin; Muritala Taiwo Adewale; Maitala Faiza; Abubakar Hauwa Lamino; Ajalie Stanley
    Objective: The study examined the relationship between liquidity risk and the profitability of Nigeria's listed deposit money banks in Nigeria over a 16 years period from 2008 to 2023. Method: Panel data on cash reserve ratio, liquidity ratio, loan to deposit ratio, and return on equity were collected from the annual reports and financial statements of the five systemic banks listed on Nigerian Exchange Group from 2008-2023. Ordinary least square regression analysis, panel unit root test, Hausman test were used in analysing the data. Results: The study found a significant positive relationship between the cash reserve ratio, loan to deposit ratio and profitability of Nigerian deposit money banks. But liquidity ratio has a negative but insignificant relationship with profitability of deposit money banks in Nigeria. Conclusion: Based on the findings, the research recommends that the Central Bank of Nigeria (CBN) must act quickly to lower cash reserve ratios in order to help Nigeria's deposits banks operate more effectively. Banks should engage competent and qualified personnel in order to ensure that right decision are adopted with regard to the optimal level of liquidity and the loan-to-deposit ratio should be fully utilized by banks to support sales initiatives.
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    Market Risks and Profitability of Deposit Money Banks in Nigeria
    (NDIC Quarterly, 2022-02-02) Bassey Ime Frank; Udoh Francis Sylvanus
    The banking sector plays a pivotal role in the financial market; however, banks’ business transactions contribute to changes in the prices of assets. Without adequate strategies by the banks to mitigate and manage their exposures to these risks, their returns may be negatively affected. This work, therefore, examined, within the cohort and semi-experimental research design framework, the effects of market risks on a bank’s profitability using a sample of four banks selected through a purposive sampling technique. The co-integration and panel multiple regression analyses conducted showed that management of market risks had long-run effects on the profitability of DMBs in Nigeria. The interest rate had positive effects on bank profitability, while exchange rate and commodity prices reduced performance. The study recommended that banks manage their operations in a way that optimizes their earnings and profits in order to mitigate the risks of loss occasioned by exchange rate dynamics in Nigeria. Also, DMBs should revitalize their interest rate risk management strategies to further boost their earnings through interest income.