Post Consolidation Profitability Ranking of Nigerian Banks
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Date
2012
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Publisher
European Journal of Humanities and Social Sciences
Abstract
This paper ranked nineteen (19) out of the existing twenty-four (24) post 2006 consolidation banks in Nigeria on the basis of their cumulative Earnings Per Share (EPS) from 2006-2010 Four banks were excluded because their financial reports for the whole period were not available The fifth was excluded because it was foreign owned for the greater part of the period under review This exercise was done against the back ground of speculations that only eight (8) of the exiting hanks are healthy while six (6) are said to be at the verge of extinction Bath the descriptive and ANOVA statistical methods were used to analyze the data sourced from the published financial statements of the banks over the period under review Findings showed that the post consolidation EPS mean of nine (9) of the banks were above average. There is a significant difference between the mean EPS of the top most banks and the rescued ones. Zenith Bank, First Bank, UBA and GTB are the four top leading banks while Intercontinental Bank, Unity Bank, Wema Bank and Fin Bank are at the bottom of the ladder. The mean EPS of the 2009 rescued banks are negative. They definitely need more than the 2009 bailout to survive. The ongoing merger talks among the banks and the. signing of Memorandum of understanding by them with core investors are therefore seen as the right steps in the right direction