Empirical Analysis of the Impact of Post-Merger on Nigerian Banks Profitability

Abstract

This research work examined the impact of post-merge on Nigerian banks profitability with special reference to selected banks. The data used for this study was obtained mainly from secondary data which were derived from the annual report and accounts of Access Bank and United Bank for Africa (UBA) between 2005 – 2012, Central Bank of Nigeria (CBN) statistics bulletins and relevant journals. Access bank and United Bank for Africa (UBA) Plc were selected for the study. The method of analysis is that of multiple regressions and the method of estimation is Ordinary Least Squares (OLS) with aid of STATA software. The result showed that post-merger has not significantly impacted on banks profitability. The study recommends among other that Central Bank of Nigeria should ensure that only strong banks are merging so as to form mega bank in order to achieve the synergy that the bank consolidation promises. And also management of Nigerian banks should be discouraged from unethical banking practices

Keywords: Merger and acquisition, Net asset, Shareholder fund, Profitability and Bank