Determinants of Bank Profitability: Company-Level Evidence from Nigeria

31 Pages Posted: 17 Mar 2008

Date Written: March 16, 2008

Abstract

To contribute to the existing knowledge of bank profitability in Nigeria, this study sought to identify significant company-level determinants of bank profitability. Using a panel data set comprising 91 observations of 33 banks over the 2000-2004 period, regression results reveal that capital size, size of credit portfolio and extent of ownership concentration are significant company-level determinants of bank profitability in Nigeria. Size of deposit liabilities, labour productivity, state of IT, ownership, control-ownership disparity and structural affiliation are insignificant; and the relationship between bank risk and profitability is inconclusive.

Keywords: Bank, Profitability, Distress, Stability, Nigeria

JEL Classification: G21

Suggested Citation

Aburime, Toni, Determinants of Bank Profitability: Company-Level Evidence from Nigeria (March 16, 2008). Available at SSRN: https://ssrn.com/abstract=1106825 or http://dx.doi.org/10.2139/ssrn.1106825

Toni Aburime (Contact Author)

Deakin University ( email )

221 Burwood Highway
Burwood, Victoria 3125
Australia
+61 4 20635563 (Phone)

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