International Journal of Contemporary Applied Researches Vol. 4, No.

12, December 2017

(ISSN: 2308-1365) [Link]

THE EFFECT OF INFORMATION COMMUNICATION TECHNOLOGY AND

FINANCIAL INNOVATION ON PERFORMANCE ON NIGERIAN COMMERCIAL
BANKS (2001 – 2013)

OKONKWO IKEOTUONYE VICTOR

DEPARTMENT OF BANKING AND FINANCE, NNAMDI AZIKIWE UNIVERSITY,
AWKA

OBINOZIE, HENRY EBUKA

DEPARTMENT OF BANKING AND FINANCE, NNAMDI AZIKIWE UNIVERSITY,
AWKA

ECHEKOBA F N
DEPARTMENT OF BANKING AND FINANCE, NNAMDI AZIKIWE UNIVERSITY,
AWKA.
nwaolisa@[Link]

Abstract

This study examined the Impact of Information and Communication Technology and financial
innovation on the performance of commercial banks in Nigeria, using conveniently selected
eleven Commercial Banks in the country. The study used the banks’ annual data and Central
Bank of Nigeria facts book over the period 2001 to 2013. The study applied ordinary least square
(OLS) in its analysis to ascertain the impact of E-Banking services and ATM on the performance
of commercial banks in Nigeria. The findings of the study indicate that an increase in banks’
profitability performance increases commercial banks’ Return on Equity (ROE). Investments in e
banking services and ATMs do not really improve banks’ performance. The study recommends
among other things that more emphasis should be on corporate governance and policies that will
increase proper and efficient utilization of financial innovation gadgets rather than simply
acquiring additional investments.

Keywords: e-banking, Information Communication Technology, Automated Teller machines

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1. INTRODUCTION
The importance of Information and Communication Technology (ICT) and Innovations
in banking system cannot be over emphasized. An ICT innovation has become an indispensable
tool to improve the human lives and connect the nations of the world. The last decade has seen
ICT dramatically transforming the world, enabling Banking innovations and productivity
increases; connecting people and communities; improving standards of living and creating
employment opportunities across the globe.
Information and Communication Technology has become global tool for any Banking
system to reach global markets. Thus every Banking system must be ICT compliance in order to
survive in global competitive environment. The introduction of ICT has changed manual and
traditional forms of doing business. The use of sophisticated technology based on automation
and interconnection of computers and other electronic devices are becoming the norm rather than
exception. For instance, ledger books, paper invoice, printed materials and business trips are
being replaced with online billing and payments, elaborate website with product information and
real-time teleconferencing across continents and time zones (Ojokuku and Sajuyigbe, 2012).
Ovia (2001) observes that the Banking system has moved into an era of menu-driven
ultra-robust specialized software programmes called Banking system applications and these
applications can carry out virtually all Banking system functions relying heavily on information
collection, storage, processing and transfer. Similarly, Woherem and Adeogri (2000) rightly says
that only banking systems that overhaul the whole of their payment and delivery systems and
apply Information Communication Technology (ICT) to their operations are likely to survive and
prosper in the new millennium. Banking system should therefore re-examine their service and
delivery systems in order to properly position themselves within the framework of the dictates of
the dynamism of information and communication technology. The advancement in ICT has
played an important role in improving service delivery standards in the financial system like the
banking industry (Abubakar and Rasmaini 2012). This has allowed for banking innovation and
financial innovation.
Banking innovation is the unanticipated improvement in the array of Banking products
and instruments that are stimulated by unexpected change in customer needs and preferences, tax
policy, technology and regulatory impulses (Bhattacharyya & Nanda, 2000). The developments

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in the Banking sector have not only led to the increase in the number of Banking institutions, but
also the development in level of sophistication with new payment systems and asset alternatives
to holding money. This has resulted mainly from technological advancement and increase in
competition as the number of institutions increase. Developments in payment systems have
started to create close substitutes for hard currency, thus affecting a core part of banking.
Financial innovation in the banking industry has been spurred on by the forces described
by Noyer (2007) particularly in terms of new distribution channel systems, such as internet and
mobile banking. As the industry has provided more ways for consumers to access their accounts,
they have added significant costs to each institution. Banks are therefore considering new ways
to drive revenue through their distribution system among which is the drive to increase the
customer share of wallet. The share of wallet is the portion of a customer’s entire Banking
relationship that any particular bank has with the customer.
Akin to ICT is the concept of globalization. The world is seen as a global village which
turned the markets and economies in like manner. Globalization has caused intense competition
in the banking industry, worldwide (Nzotta and Okereke, 2009 and Thiel, 2001). The
phenomenon called globalization has significantly intensified competition in the banking sector
in three particular aspects viz: banks face pressures from a wide and diverse range of
competitors; the regulatory environment has become less protective of the banking sector; and
competition has become global in nature (Abdulsalam, 2006).
In order to tap the potential benefits of ICT and Banking innovation, Banks deploy ICT
based banking products and services such as automated teller machine (ATM), internet banking,
mobile banking solutions, point of sale terminals, computerized Banking accounting and
reporting, human resources solution among others. In spite of these, there is a debate about
whether and how the ICT adoption improves commercial banks performance especially in
Nigeria. This study aims to answer determine the impact of E-banking services on banks Return
on Equity; and the effect of Automatic Teller Machine (ATM) on commercial Banks Net profit.
The formulated hypotheses formulated in null format are: E- banking services has no positive
and significant impact on the performance of commercial banks in Nigeria; and Automatic Teller
Machine (ATM) has no positive and significant effect on the performance of commercial banks
in Nigeria.

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This work is further divided into seven sections: the introduction; conceptual framework;
theoretical framework; empirical review; research methodology; data presentation and analysis;
and summary of findings, conclusion and recommendations.

2. CONCEPTUAL FRAMEWORK
According to Wikipedia (the free encyclopaedia), Banking innovation refers to the
creating and marketing of new types of securities. Questions may arise, why does Banking
innovation occur? Economic theory has much to say about what types of securities should exist,
and why some may not exist (why some market should be incomplete) but little to say about why
new types of securities should come into existence. Some types of financial innovation are
driven by improvement in computer and telecommunication technology. For example, Paul
Volcker suggested that for most people, the creation of the ATM was a greater Banking
innovation than asset backed securitization. Other types of financial innovation affecting the
payment system include credit and debit cards and online payment system like paypal (e-
banking service). These types of innovations are notable because they reduce transaction costs.
Households need keep lower cash-in-advance constraints then these kinds of Banking innovation
can contribute to greater efficiency and performance.
Microsoft Encarta 2009 defined information and communication technology as the
processing of data via computer: the use of technologies from computing, electronics, and
telecommunications to process and distribute information in digital and other forms. Information
technology combines the technology of computers and communications to provide information
processing services throughout the office or around the world. Sajuyigbe and Alabi, (2012)
posited that ICTs encompass technologies that can process different kinds of information (audio,
video, text, and data), and facilitate different forms of communications among human agents,
and among information systems. It consists of harnessing electronic technology for the
information needs of businesses at all levels. In addition, Longley and Shain (1992) defines
information and communication technology as the acquisition, processing, storage and
dissemination of vocal, pictorial, textual and numerical information by a micro-electronic based
combination for computing and telecommunication. An information system (IS) is a group of
formal process that together collects, retrieve, process, store and disseminate information for the

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purpose of facilitating planning, control, coordination and decision making in organizations.

Information and communication technology on the other hand provides the technical solutions
identified in the (IS) information system; including the networks, hardware and software (Accad,
2009).
The use of information and communication technology in banking operations is called
electronic banking. Ovia (2001) says that Electronic banking is a product of e-commerce in the
field of banking and Banking services. In what can be describe as Business-to-consumer (B2C)
domain for balance enquiry, request for cheque books, recording, stop payment instruction,
balance transfer instruction, account opening and other forms of traditional banking services.
Banks are also offering payment services on behalf of their customers who shop in different e-
shops. The use of information technology in banking operations is called electronic banking.
Josiah and Nancy, (2012) observed that there are positive impacts of e-banking on bank
turnover and profitability and to a lesser extent on employment, most notably when e-commerce
is part of larger business strategies of bank. The use of e-banking can contribute to improved
bank performance, in terms of increased market share, expanded product range, customized
products and better response to client demand. Only banks that use their technology resources
effectively have the opportunity to secure real competitive advantage in this fast changing
industry through real product or service differentiation.
Information and Communication Technologies (ICTs) refers to technologies people use
to share, distribute, and gather information, and to communicate through computers and
computer networks (Laudon and Laudon, 2001). ICTs can be described as a complex varied set
of goods, applications and services used for producing, distributing, processing, transforming
information (including) telecoms, TV and radio broadcasting, hardware and software, computer
services and electronic media (Laudon and Laudon; 2001). ICTs represent a cluster of associated
technologies defined by their functional usage in information access and communication, of
which one embodiment is the Internet.
Ojokuku and Sajuyigbe (2012) identified the following Information and Communication
Technology banking products:
Automated Teller Machine (ATM): An ATM device allows a bank customer to withdraw cash
from his account via a cash dispenser (Machine), and the account is debited immediately. A

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fundamental advantage is that it needs not to be located within the banking premises. It is usually
in stores, shopping malls, fuel stations etc. It saves customers time in service delivery as
alternative to queuing in bank halls, customers can invest such time saved into other productive
activities. ATMs are a cost-efficient way of yielding higher productivity as they achieve higher
productivity per period of time than human tellers.
The Card System: The card system is a unique electronic payment type. The smart cards are
plastic devices with embedded integrated circuit being used for settlement of financial
obligations. The power of cards lies in their sophistication and acceptability to store and
manipulate data, and handle multiple applications on one card securely. Depending on the
sophistication, it can be used as a Credit Card, Debit Card and ATM (Automated Teller
Machine) card.
Point of Sale (POS) terminals: POS terminals handle cheque verifications, credit authorization,
cash deposit and withdrawal, and cash payment. This enhances electronic fund transfer at the
point of sale (EFTPOS). EFTPOS enables a customer's account to be debited immediately with
the cost of purchase in an outlet such as a supermarket or petrol station. It consists of the
accumulation of electronic payment messages by the retailer, which are subsequently passed on
to appropriate institutions for processing. The purchase price is debited on the buyer's account
and credited on the seller's account.
A credit card: This is a payment card issued to users as a system of payment. It allows the
cardholder to pay for goods and services based on the holder's promise to pay for them. The
issuer of the card creates a revolving account and grants a line of credit to the consumer(or the
user) from which the user can borrow money for payment to a merchant or as a cash advance to
the user.
A debit card: This is also known as a bank card or check card is a plastic payment card that
provides the cardholder electronic access to his or her bank account(s) at a Banking institution.
Some cards have a stored value with which a payment is made, while most relay a message to
the cardholder's bank to withdraw funds from a payee's designated bank account. Online debit
cards require electronic authorization of every transaction and the debits are reflected in the
user’s account immediately. The transaction may be additionally secured with the personal

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identification number (PIN) authentication system; some online cards require such authentication
for every transaction, essentially becoming enhanced automatic teller machine (ATM) cards.
Mobile Banking: Mobile Banking refers to provision and availing of banking - and Banking
services with the help of mobile telecommunication devices. The scope of offered services may
include facilities to conduct bank and stock market transactions, to administer accounts and to
access customized information.
3. THEORETICAL FRAMEWORK
A modified form of Solow’s (1957) neoclassical growth model is adopted in this work.
Essentially, aggregate output (Y) is modelled as a simple function of IT capital services (KIT),
other capital services (KOTH), include labour (L), and a multifactor productivity term (MFP).
Technological change is embodied in the MFP variable. A number of neoclassical assumptions
are imposed, including perfect competition, constant returns to scale, no adjustment costs, equal
returns to all types of capital, and Hicks-neutral technological change. The growth in labour
productivity is given by: Δ(Y/L) = α1Δ (KIT/L) + α2Δ (KOTH/L) + ΔMFP
Where Δ denotes a growth rate, and
α represents the income shares.
Technological progress is measured by the Solow residual or ΔMFP.
Porter (1985) explains that competitive advantage grows fundamentally out of the value a
firm is able to create for its buyers that exceeds the firm’s cost of creating it. In this sense, value
is what buyers are willing to pay, and superior value stems from offering lower prices than
competitive price for equivalent benefits or providing unique benefits that more than offset a
higher price. To achieve sustainable profit, therefore, a firm needs sustainable advantage, in
either cost or differentiation (Porter, 1985). These two basic types of source of competitive
advantage combined with the scope of the firm’s activity lead to three known generic strategies –
cost leadership, differentiation strategy and focus strategy – for achieving above – average
performance in an industry. This research work adopted Porter (1985) competitive advantage
grows model.
4. EMPIRICAL REVEIW
Irechukwu (2000) lists some banking services that have been revolutionized through the
use of ICT as including account opening, customer account mandate, and transaction processing

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and recording. ICT products in use in the banking industry include automated teller machine,
smart cards, telephone banking, MICR, electronic funds transfer, electronic data interchange,
electronic home and office banking (Akpan, 2008 and Johnson, 2005). Agboola (2001) studied
the impact of computer automation on the banking services in Lagos and discovered that
electronic banking has tremendously improved the services of some banks to their customers in
Lagos. Aragba-Akpore (1998) investigated on the application of information technology in
Nigerian banks and pointed out that IT is becoming the backbone of banks’ services regeneration
in Nigeria. He cited the Diamond Integrated Banking Services (DIBS) of the Diamond Bank
Limited and electronic smart card accounts (ESCA) of All States Bank Limited as efforts geared
towards creating sophistication in the banking sector. Ovia (2000) discovered that banking in
Nigeria has increasingly depended on the deployment of information technology and that the IT
budget for banking is by far larger than that of any other industry in Nigeria. He contended that
the on-line system has facilitated internet banking in Nigeria as evidenced in some of them
launching websites. He found also that banks now offer customers the flexibility of operating an
account in any branch irrespective of which branch the account is domiciled. Woherem (1997)
discovered that since 1980s Nigerian banks have performed better in their investment profile and
use of ICT systems, then the rest of the industrial sector of the economy.
Acharya, Kagan, Lingam, and Gray (2008) examines the impact of web design features
of a community banks’ performance using a sample of 55 community banks with online services
in the five mid western states of the United States of America. The authors utilized both primary
and secondary data by applying multiple regression models. The results show that banks with
higher usability of ICT perform significantly better than those with low ICT usability. Egland,
Frust, Nolle and Robertson (1998) conduct a study and found no evidence of major differences in
performance of electronic banking in the US subject to two caveats:
1. This result may not be the case for all the banks.
2. Such result is open to change over time as banks become more severe in the use of
innovation.
Sullivan (2009) also found no systematic evidence that multi-channel banks in the 10th
Federal Reserve District were either helped or harmed by having transactional web sites. These
finding were among the previous findings of Sathye (2005), for the credit unions in Australian

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banks for the period of 1997 to 2001, shows that electronic banking has not proved to be a yard
stick for performance enhancing tool. According to Haq (2005) banks’ existence depend on their
ability to achieve economies of scale in minimizing asymmetry of information between savers
and borrowers.

5. RESEARCH METHODOLOGY
The data were extracted from the banks' annual reports and CBN Factbooks covering the period
2001 – 2013. The data comprises of net profits, total assets, return of equity, ATM machines and
e- banking services of eleven selected commercial banks in Nigeria, namely; Access Bank Plc.,
Diamond Bank Plc,, Eco Bank Plc, Fidelity Bank Plc, First Bank of Nigeria Plc, GTbank Plc,
Sterling Bank Plc, Union Bank of Nigeria Bank Plc, United Bank for Africa Plc, Wema Bank Plc
and Zenith Bank Plc. The variables of interest included net profit, ICT innovation, shareholders’
funds, total asset, and return on equity. They were not comprehensively provided by all the
banks. Thus, the banks whose data were accessibly were targeted for the purpose of this study.
The variables captured in the model specified in this study were:
Dependent variable: Bank Performance – this variable has often been measured using return on
asset (ROA) and return on equity (ROE). Return on asset is defined as net income after tax
divided by total assets. This ratio is an indicator of managerial efficiency; it indicates how
capable the management of the banks has been converting the bank's assets into net earnings,
while return on equity is measured as net income after tax divided by total equity capital. It
measures the rate of return to the shareholder. In this study return on equity is our proxy for the
bank performance.
Independent variables: The explanatory variables in the model are:
i. Profit after Tax (PAT): This was measured as profits realized by the bank after tax.
ii. ATM: This variable was measured by the number of ATM used by each bank.
iii. E-banking services (ebserv): The total number of e-banking services available in
each bank was used.
We therefore states that: BP = f (PAT, ATM, ebserv) ......................................................... (1)
LogBP = Logβ0 + Logβ1PAT + Logβ2ATM + Logβ3ebserv + µ .............................................. (2)
Where,

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BP = Bank performance
β0 = Constant parameter
PAT = Profit after tax
ATM = Number of automated teller machines
ebserv = number of e-banking services
µ = Error term
Using regression techniques i.e ordinary least square approach, and e-view software, the
available data were analysed. The input data from 2001- 2013 are presented in appendix I. Our a
priori expectations are shown in Table 1.
Table 1 A Priori Expectations
Independent Variables Expected Signs
Net Profit +
ATM -
E-banking services -

6. DATA PRESENTATION AND ANALYSIS

The least square estimation output data were shown in Table 2.
Table 2 Least Square Estimation
Variable Coefficient Std. Error. t- statistics Prob.
EBSERV 0.166274 1.079751 0.153993 0.8778
ATM -0.012380 0.018205 -0.6800037 0.4976
PAT 1.65 1.95 8.441417 0.0000
C 10.45794 10.58629 0.987876 0.3249
R-Squared 0.379986 Mean dependent var 24.00570
Adjusted R-Squared 0.362014 S.D. dependent var 79.42834
S.E of Regression 63.44260 Akaike info criterion 11.17249
Sum squared residual 555445.0 Schwardz criterion 11.27608
Log likelihood -793.8328 Hannan-Quinn criterion 11.21458
F-statistic 21.14387 Durbin-Watson stat 1.488170
Source: Computer analysis using E-View

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The analysis shows that the coefficient (0.1662) for E banking services shows a positive
influence on banks performance, but it is not statistically significant, this finding indicates that
investment in e banking services does not increase commercial banks performance.
The analysis shows that the coefficient (-0.01238) related to ATM’s usability is negative and not
statistically significant. This finding indicates that the use of ATM’s does not enhance
commercial banks performance in Nigeria. ATM does not have significant effect on the
performance of commercial banks.
Table 3 summarizes the outcome of the model parameters on a priori ground.
Table 3: A Priori Expectations
Independent Expected Signs Observed Signs Remarks
Variables
Net Profit + + Conform
ATM - - Conform
E-banking services - + Does not conform
All the independent variables except E-banking services conformed to economic theory
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
The findings are summarized as follows:
i. Banking innovations do no really improve performance in the Nigerian Commercial Banks.
ii. The E banking services shows a positive influence on banks performance, but it is not
statistically significant. This finding indicates that investment in e banking services does
not necessarily increase commercial banks performance proportionately.
iii. The ATM’s usability is negative and not statistically significant. This finding indicates that
the use of ATM’s does not necessarily influence commercial banks performance in Nigeria.
It may result to liability on the side of the host banks.

7. CONCLUSION
Investments towards banking innovation do not simply improve commercial banks’ performance
in Nigeria. Prudent management of banks’ fund and increasing customers’ base will contribute
significantly to the banks’ performance.

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In addition, profit after tax serve as prime factor indicating commercial banks performance in
Nigeria; however, better proxy to measure commercial banks performance are return on equity
and return on assets.
8. RECOMMENDATIONS
Based on the findings of this study, the following recommendations are postulated:
a. Since the findings of this study indicate that investments in banking innovation do not
simply translate to improve commercial banks performance, banks should give emphasis
on efficient utilization of the banking innovation or e- banking services equipment such
as credit and electronic cards to pay at retail outlets, points of sales (POS), phone
banking, electronic payment debit, cash withdrawal machines that becomes Automated
Teller Machines (ATM), home banking, internet banking, mobile banking, personal
digital assistant banking rather than purchase of additional machines.
b. For commercial banks in Nigeria to actually reap the benefit of banking innovation more
campaigns and orientation of clients need to be pursued to create awareness for them to
patronize the facilities. Acceptance of these facilities will consolidate the gains from
investing in them.

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Appendix I Input data: ATM, Profit after tax, Return on equity and E-banking service
(2001 to 2013)
YEA ebser
BANK BID R S.F PAT(Naira) ATM v ROE (%)
ACCESS 1 2001 919493000 77743000 0 5 0.08455
ACCESS 1 2002 1343704 -55245000 0 5 -41.114
ACCESS 1 2003 2365356 556573000 0 5 235.302
ACCESS 1 2004 2702830 637473000 0 5 235.8539
ACCESS 1 2005 14071324 501515000 0 6 34.64092
ACCESS 1 2006 28893886 737149000 34 6 25.51228
ACCESS 1 2007 28384891 6083439 71 6 0.21432
ACCESS 1 2008 171860665 16056464 95 7 0.093427
ACCESS 1 2009 185188124 20814216 154 7 0.112395
ACCESS 1 2010 175370457 11068121 190 7 0.063113
ACCESS 1 2011 197042209 16708255 305 9 0.084795
ACCESS 1 2012 186789000 174543656 481 11 0.093443
ACCESS 1 2013 17250000 19654421 502 13 1.139387
DIAMON
D 2 2001 47372580 1689618 25 4 0.035667
DIAMON
D 2 2002 53003546 1478175 25 4 0.027888
DIAMON
D 2 2003 1152663000 65776000 35 4 0.57066
DIAMON
D 2 2004 883414000 903411000 41 4 1.022636
DIAMON 2 2005 2510279 2509810 50 4 0.999813

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D
DIAMON
D 2 2006 222833154 3977059 150 4 0.017848
DIAMON
D 2 2007 320419399 7086770 164 4 0.022117
DIAMON
D 2 2008 62566918 12821074 165 4 0.020492
DIAMON
D 2 2009 650757117 -8174413 180 4 -0.01256
DIAMON
D 2 2010 6522455 548402560 180 4 84.07916
DIAMON
D 2 2011 -22187848 722965977 180 4 -32.5839
DIAMON
D 2 2012 326111000 726112330 180 4 2.22658
DIAMON
D 2 2013 138850000 914663220 180 4 6.58742
ECO 3 2001 2522540 716071000 0 4 283.869
ECO 3 2002 2945733 553725000 0 4 187.9753
ECO 3 2003 3518887 816815000 0 4 232.1231
ECO 3 2004 4413327 854439000 0 4 193.6043
ECO 3 2005 25762863 1368174 0 4 0.053106
ECO 3 2006 132091706 3558591 52 4 0.02694
ECO 3 2007 311395894 7449777 104 4 0.023924
ECO 3 2008 432466245 2130461 163 4 0.004926
ECO 3 2009 355662000 -4588000 185 4 -0.0129
KEYS: S.F: Shareholders’ fund; PAT: Profit after tax; ATM: Number of automated teller
machine; ROE:
Return on equity; ebserv: Number of banking innovation
Contd. over leaf

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Input data: ATM, Profit after tax, Return on equity and E-banking service (2001 to 2013)
contd.
YEA ebser
BANK BID R S.F PAT(Naira) ATM v ROE (%)
ECO 3 2010 206817600 21091040 191 4 0.101979
ECO 3 2011 233493760 33094400 191 4 0.141736
ECO 3 2012 206000000 454860000 196 4 2.208058
ECO 3 2013 41000000 235710000 198 4 0.574902
FIDELIT
Y 4 2001 1300533 400661000 0 8 308.0745
FIDELIT
Y 4 2002 1915211 539242000 0 10 281.5575
FIDELIT
Y 4 2003 2515423 856885000 0 10 340.6524
FIDELIT
Y 4 2004 3519624 913604000 0 10 259.5743
FIDELIT
Y 4 2005 9776922 1305854 0 10 0.133565
FIDELIT
Y 4 2006 25664717 3218617 32 10 0.12541
FIDELIT
Y 4 2007 30101287 4714283 56 12 0.156614
FIDELIT
Y 4 2008 136371740 13356301 89 14 0.09794
FIDELIT
Y 4 2009 435666000 1557000 112 15 0.003574
FIDELIT
Y 4 2010 154371740 14256301 134 18 0.9235
FIDELIT
Y 4 2011 165371740 15356421 168 18 0.9286

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FIDELIT
Y 4 2012 166433223 15356422 173 18 0.921514
FIDELIT
Y 4 2013 167000000 15432113 173 18 0.924079
FIRST 5 2001 18170000 5066000 50 5 0.278811
FIRST 5 2002 19406000 4776000 65 5 0.26109
FIRST 5 2003 27006000 11010000 73 6 0.407687
FIRST 5 2004 41605000 11483000 104 8 0.276
FIRST 5 2005 48726000 13234000 280 10 0.2716
FIRST 5 2006 64277000 17383000 650 10 0.270439
FIRST 5 2007 83627000 20636000 729 10 0.246762
FIRST 5 2008 351854000 36679000 818 10 0.104245
FIRST 5 2009 337405000 12569000 904 10 0.037252
FIRST 5 2010 32123000 1962444 1090 16 0.061092
FIRST 5 2011 47462000 2463543 1090 16 0.051906
FIRST 5 2012 472432244 3231145 2310 18 0.068394
FIRST 5 2013 350710000 4522556 2317 18 0.128954
G. TRUST 6 2001 4026177 1503694 15 13 0.373479
G. TRUST 6 2002 8016492 2187059 23 13 0.27282
G. TRUST 6 2003 9638925 3144182 26 15 0.326196
G. TRUST 6 2004 11754406 4125832 35 15 0.351003
G. TRUST 6 2005 33643184 5433748 60 17 0.161511
G. TRUST 6 2006 40549833 8590265 160 18 0.211845
Contd. over leaf
Input data: ATM, Profit after tax, Return on equity and E-banking service (2001 to 2013)
contd.
YEA ebser
BANK BID R S.F PAT(Naira) ATM v ROE (%)
G. TRUST 6 2007 47324118 13193759 170 18 0.278796

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G. TRUST 6 2008 160008886 21169477 185 20 0.132302

G. TRUST 6 2009 1065504345 23687567 200 21 0.022231
G. TRUST 6 2010 112550545 32685776 215 23 0.024599
G. TRUST 6 2011 531563000 370038000 215 23 0.027806
G. TRUST 6 2012 424332700 384009800 281 28 0.904973
G. TRUST 6 2013 332350000 432234500 281 30 1.30054
STERLIN 0.696613
G 7 2001 531563000 370038000 0 5 2
STERLIN
G 7 2002 664454000 39810000 0 4 0.059914
STERLIN
G 7 2003 831688000 178923000 0 4 0.215132
STERLIN
G 7 2004 1243294 1545077 0 4 1.242729
STERLIN
G 7 2005 2966726 -4820558 0 4 -1.62487
STERLIN
G 7 2006 26319328 961645000 45 4 36.5376
STERLIN
G 7 2007 26800395 620658000 50 6 23.15854
STERLIN
G 7 2008 6523153 236502923 55 6 36.25592
STERLIN
G 7 2009 -6660406 205640827 60 6 -30.8751
STERLIN
G 7 2010 4178493 259579523 68 6 62.12276
STERLIN
G 7 2011 6686473 504427737 68 6 75.44003
STERLIN
G 7 2012 286489980 516534667 68 6 1.802976

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STERLIN
G 7 2013 321740000 540907790 68 6 1.681195
UBA 8 2001 9067000 1269000 15 3 0.139958
UBA 8 2002 10627000 1566000 23 3 0.14736
UBA 8 2003 14901000 3280000 32 3 0.220119
UBA 8 2004 19533000 4525000 32 3 0.231659
UBA 8 2005 19443000 4525000 42 4 0.253099
UBA 8 2006 48535000 11550000 83 4 0.237973
UBA 8 2007 167719000 21441000 112 4 0.127839
UBA 8 2008 1673333 40825000 142 4 24.39742
UBA 8 2009 1548281 2375000 182 4 1.533959
UBA 8 2010 2167000 1432632 253 4 0.661113
UBA 8 2011 -16385000 1655465 340 4 -0.10104
UBA 8 2012 132240000 1734356 344 6 0.131152
0.077103
UBA 8 2013 259540000 1843556 348 6 2
UNION 9 2001 13786000 5035000 0 4 0.365226
UNION 9 2002 30302000 4726000 0 4 0.155963
UNION 9 2003 32730000 6600000 0 4 0.20165
Contd. over leaf

Input data: ATM, Profit after tax, Return on equity and E-banking service (2001 to 2013)
contd.
YEA ebser
BANK BID R S.F PAT(Naira) ATM v ROE (%)
UNION 9 2004 39732000 8341000 0 4 0.209932
UNION 9 2005 43215000 9783000 0 7 0.22638
UNION 9 2006 100500000 10802000 35 7 0.107383
UNION 9 2007 102706000 13329000 56 7 0.129778

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UNION 9 2008 25739000 26855000 83 7 1.043358

UNION 9 2009 -281173000 -281373000 190 7 1.009711
UNION 9 2010 -135894000 118016000 198 7 -0.86844
UNION 9 2011 301173000 301173000 204 7 1
UNION 9 2012 160087090 323469000 251 7 2.020581
UNION 9 2013 188000000 423227000 256 7 2.251207
WEMA 10 2001 619554000 675015000 0 4 1.089518
WEMA 10 2002 1481667 778864000 0 4 525.6674
WEMA 10 2003 1477775 1527311 0 4 1.033521
WEMA 10 2004 967148000 1555460 0 4 0.001608
WEMA 10 2005 844285000 4451625 0 6 0.005273
WEMA 10 2006 20540001 -6601961 120 6 -0.32143
WEMA 10 2007 25182705 2554098 150 6 0.101423
WEMA 10 2008 128906575 -57738739 150 6 -0.44791
WEMA 10 2009 142785723 -2094692 160 6 -0.01467
WEMA 10 2010 203144627 16238533 168 6 0.079936
WEMA 10 2011 210144627 16538533 168 6 0.078701
WEMA 10 2012 256708800 21564490 168 6 0.840037
WEMA 10 2013 410000000 464700000 168 6 1.133415
ZENITH 11 2001 21044627 16538533 25 5 0.424547
ZENITH 11 2002 3504013 1026658 32 5 0.292995
ZENITH 11 2003 4424186 1548555 53 5 0.35002
ZENITH 11 2004 5190768 1548555 67 5 0.298329
ZENITH 11 2005 42100031 7143266 84 5 0.169674
ZENITH 11 2006 100642511 11619227 102 7 0.11545
ZENITH 11 2007 114586090 18779804 123 7 0.163893
ZENITH 11 2008 344348245 51992239 245 7 0.150987
ZENITH 11 2009 335570000 20603000 267 7 0.061397
ZENITH 11 2010 350414000 20603000 303 7 0.009513

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ZENITH 11 2011 360868000 37414000 373 7 0.103678

ZENITH 11 2012 462900000 100600000 384 7 0.217326
ZENITH 11 2013 509300000 953200000 384 7 1.871588
Source: Banks’ Financial Statement of Various Years and CBN Fact Books

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