Analysis of Banks Profitability: Foreign Comparison
Keywords:
Banks Profitability. Total Loan, Total Customer Deposit, Panel DataAbstract
Attempt at analyzing banks profitability informed this study. For sound and robust reviews of end report, the
study took at comparing commercial banks across countries in Africa with emphasis on Nigeria, Ghana and South Africa
owing to presumed position they occupy in the continent. To achieve its aims and from data provided by World Bank
Group – International Monetary Funds, the study mirrored commercial banks profitability with total income (TI) hence, the
dependent variable. The independent variables were proxied by total loan (TL) and customer deposits (CD). Data sets
covers a ten (10) year period across cross –sections. Panel Autoregressive Distributed Lag (ARDL) regression of pooled
ordinary least square, fixed effect model (FE) and random effect (REM) models, with Hausman Test of acceptance were
specified. Similarly, Panel descriptive statistics and Panel Unit Rootstest were also tested and confirmed. Analysis was done
with the aid of E-views statistical software v9. Results from the Panel ARDL finds Fixed Effect (FE) Model appropriate
having taking into considerations the heterogeneity observations often not obseverded in the pooled ordinary least square
and the randomnization effect in RE. By implication, findings indicate that total loan is statistically insignificant acorss
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