BANKS IN NIGERIA

This study is on non-performing loans and performance on quoted deposit
money banks in Nigeria. The objectives of this study are to investigate the
effect of non-performing loans, loans and advances and loan loss provision
on performance of quoted deposit money banks in Nigeria. Secondary data were sourced from the audited financial statement of our fourteen (14) sampled quoted deposit money banks spanning from 2010- 2019. The study adopted panel regression analysis to analyze the data as well as other preliminary texts like descriptive statistics, correlation analysis and Hausman test. The study found out that non-performing loan and loans and advances does not impact on the performance of quoted deposit money banks, only loan loss provision displayed significant impact. The study recommends amongst others that there is need for the Nigeria Deposit Insurance Corporation (NDIC) and the Central Bank of Nigeria (CBN) to oversee banks more closely in order to prevent a potential rapid increase in non-performing
loans.

This study explored the influence of corporate social responsibility (CSR) on the financial performance of deposit money banks (DMBs) in Nigeria. Specifically, the study investigates impact of CSR on Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). It focused on four CSR dimensions: corporate governance, economic responsibility, ethical responsibility and philanthropic responsibility.

The study adopted an ex-post facto research design, utilizing secondary data obtained from The Annual Financial Reports of DMBs listed on the Nigerian Exchange Group (NGX) from 2011 to 2023. The analysis employed panel data estimation techniques, including fixed and random effects models, to determine the relationships between CSR practices and financial performance of deposit Money banks.

The findings indicated that economic responsibility had a significant positive effect on ROA, suggesting that DMBs that engage in value-creating activities such as offering innovative financial products and services, as well as supporting local economic development, tend to experience improved financial performance. Additionally, philanthropic responsibility, which includes community development initiatives, education support, and disaster relief efforts, was found to positively impact ROA, ROE and NIM enhancing brand reputation and customer loyality. Ethical responsibility, reflected in the adoption of transparent and fair business practices, also demonstrated a positive effect on financial performance by fostering trust and mitigating risk associated with legal and reputational issues. However, corporate governance was found to have no significant impact on ROA, indicating that governance practices may not directly influence the financial outcomes of Nigerian banks. Based on these findings, the study recommended that banks should priorities economic and philanthropic CSR activities, promote ethical business conduct, and enhance their corporate governance frameworks to improve performance. The results underline the importance of CSR in contributing to both financial success and socio-economic development in host communities.