Faculty of Management Sciences, Federal University Otuoke
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Young U. OKWUISE (PhD.) & Sylvester, UKWANDI
The aim of this study is to assess the effect of performance measurement on profitability of banks using key indicators. Information about the procedures required for implementation of performance measurement was provided. It employed the Likert-type questionnaire, survey research design and random sampling to obtain primary data. Financial ratios were obtained from the financial statements of banks for the period 2009 - 2015. Guaranty Trust Bank Plc, Sterling Bank Plc and United Bank for Africa were selected for the study. The data collected were analyzed using both descriptive statistics, and regression techniques. The results showed that performance measurement variables were significant in jointly explaining the variance of profitability and that quality service delivery had the highest effect on profitability of banks, employee motivation, handling of customer complaint and level of liquidity had no significant relationship with the profitability of banks. It was concluded that the trend of the labour cost to revenue ratio must be checked regularly in order to track the efficiency of labour in generating revenue each financial year. The study therefore recommends that adequate efforts should be made by banks to make the future results of cost to income ratio low. Also, customer complaints handling should be enhanced and liquidity levels should be well managed so as to boost profitability of banks.
Editorial
Published: 23 Dec 2019
PERFORMANCE MEASUREMENT AND PROFITABILITY OF BANKS IN NIGERIA
48-69 (2019)
Abstract
Author Information
Affiliations
Department of Business Administration and Marketing, Faculty of Management Sciences, Delta State University, Abraka, Asaba Campus.
Young U. OKWUISE (PhD.)
Corresponding Author
Young U. OKWUISE (PhD.)
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Young U. OKWUISE (PhD.) & Sylvester, UKWANDI (2019). Performance Measurement and Profitability of Banks in Nigeria. Otuoke Journal of Management Sciences, 4(2) 48 - 69.
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Sylvester, UKWANDI
Department of Business Administration and Marketing, Faculty of Management Sciences, Delta State University, Abraka, Asaba Campus.