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Electronic Banking And Bank Performance In Nigeria

ZC Abaenewe
OM Ogbulu
MO Ndugbu


This study investigated the profitability performance of Nigerian banks following the full adoption of electronic banking system. The study became necessary as a result of increased penetration of electronic banking which has redefined the banking operations in Nigeria and around the world. Judgmental sampling method was adopted by utilizing data collected from
four Nigerian banks. These four banks are the only banks in Nigeria that have consistently retained their brand names and remain quoted in the Nigerian Stock Exchange since 1997. The
profitability performance of these banks was measured in terms of returns on equity (ROE) and returns on assets (ROA). With the data collected, we tested the pre- and post-adoption of ebanking performance difference between means using a standard statistical technique for independent sample at 5 percent level of significance for performance factors such as ROE and ROA. The study revealed that the adoption of electronic banking has positively and significantly improved the returns on equity (ROE) of Nigerian banks. On the other hand and on the contrary, it also revealed that e-banking has not significantly improved the returns on assets (ROA) of Nigerian banks.. The findings of this study have motivated new recommendations for bank customers, bank management and shareholders with regard to electronic banking adoption for
banking operations.

Keywords: Electronic banking, returns on assets (ROA), returns on Equity (ROE), difference between means and Bank profitability performance.

Journal Identifiers

print ISSN: 1116-5405