The Determinants of Bank’s Profitability in Nigeria

ABSTRACT: The study was conducted to find out the impact of bank specific and macroeconomic factors on the profitability of seven (7) selected banks from Nigeria for a period of seven (7) years from 2005-2011. A panel regression analysis was used to find out these relationships empirically. The estimation results indicated that management efficiency has been a driving force in determining the profitability of banks in Nigeria with respect to the short-run analysis. However, the study also indicated how macroeconomic factors such as GDP growth rate had a negative impact on the profitability of Nigerian banks, which is no surprise due to unsettled policy reformations during the last few years. The study concluded with some remarks on possible implementations of the findings. Keywords: Performance, Profitability, Banking Industry, macroeconomic. ……………………………………………………………………………………………………………………………………………………………………………………………………………………