IMPACT OF BANK SPECIFIC FACTORS ON THE PROFITABILITY OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The main goal of every banking institution is to operate profitably in order to maintain stability and growth. External and internal economic environments are viewed as critical drivers for bank performance in Nigerian. The specific objectives of the study are to determine the impact of capital adequacy on the profitability of deposit money bank in Nigeria, to evaluate the impact of asset quality on the profitability of deposit money banks in Nigeria, to examine the impact of management efficiency on the profitability of deposit money hank in Nigeria and to ascertain the impact of earning ability on the profitability of deposit money banks in Nigeria. In carrying out this study, a panel data was used with the adoption of ex-post facto design. The study formulated four hypotheses and used panel data regression to analyze the secondary data extracted from the annual reports and accounts of the fourteen banks for the period of 2010 to 2018. Profitability was represented by tM>o proxies; return on asset (ROA) and return on equity (ROE). The choice of this nine-year period was based on the explosive growth of the banking sector in the country and the availability of complete data for that period under study. The study found that capital adequacy has positive and significant impact on the profitability of the deposit money listed in Nigeria. The study also found that asset quality has negative and significant influence on the profitability of deposit money bank listed in Nigeria. The study found that management efficiency has negative and statistical association on the profitability of deposit money banks deposit money bank listed in Nigeria. Finally earnings ability was found to have a significant and statistical influence on the profitability of listed deposit money bank. From the findings increase in management efficiency causes a significant increase on financial performance of deposit money banks, the study therefore recommends that efficient and effective management should be adopted by bank managers to ensure that banks do not become insolvent and the board of management should not give more emphasis of acquiring physical asset in favour of liquid asset.