Bank Attributes and Financial Performance of Listed Deposit Money Banks in Nigeria
Keywords:
capital adequacy, asset quality, management efficiency, financial performance, deposit money banksAbstract
Despite continuous regulatory reforms and increased capital requirements in the Nigerian banking sector, the financial performance of listed deposit money banks (DMBs) remains inconsistent, raising concerns about the influence of bank-specific attributes on profitability. This study examines the effect of bank-specific attributes on the financial performance of listed DMBs in Nigeria from 2015 to 2024. Specifically, it investigates the effects of capital adequacy, asset quality, and management efficiency on return on equity (ROE). The study is anchored on the post-positivist paradigm and adopts a quantitative research design. A census sampling technique was employed, covering all thirteen (13) listed DMBs on the Nigerian Exchange Group. Secondary data were obtained from audited annual financial statements and publications of the Central Bank of Nigeria. Panel Corrected Standard Error (PCSE) regression was applied following evidence of heteroskedasticity. The findings reveal that capital adequacy has a significant negative effect on financial performance, whereas asset quality and management efficiency exert significant positive effects on ROE. The model produced an R-squared value of 0.398, indicating that the explanatory variables account for 39.8% of the variation in financial performance, while the F-statistic confirmed the overall significance of the model. The study concludes that effective management practices and improved asset quality enhance bank performance, whereas excessive capital holdings may reduce profitability due to inefficient resource utilization. It recommends strengthening credit risk management, improving operational efficiency, and ensuring optimal capital utilization to enhance the financial performance of listed deposit money banks in Nigeria.
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Copyright (c) 2026 Ismaila Abubakar, Saifullahi A. Mazadu, Haruna Daddau
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