LOAN/ADVANCES TO CUSTOMERS’ AND EARNINGS PER SHARE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

The study investigated the effect of loan advances to customer’s and earning per share of listed deposit money banks in Nigeria. The study was ex post Facto research design and the pollution was fourteen deposit money banks in Nigeria listed on the Nigeria exchange group. The Sample size was seven deposit money banks using the purposive sampling techniques. The study used secondary data from published annual account of the seven money deposit banks in the Nigeria exchange group website. The panel method analysis was adopted. The panel was analysed with econometric techniques that involved descriptive and inferential statistics using ordinary least square regression technique. Findings shows that there is significant effect of loan advances to customers on earning per share of listed deposit money banks studied. The study concluded that loan advances has positive effect on earning per share of list deposit money banks in Nigeria and was recommended that banks should make available loan advances as its bedrock for bank sustainability in terms of profitability growth, and that manager of deposit money banks should increase allocation of resource towards financial assets especially those held for trading in order to improve on their financial performance.