FINANCIAL INCLUSION AND FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

Abstract

This study evaluated the effect of financial inclusion on financial performance of listed deposit money banks in Nigeria. The Specific objectives were sought to; evaluate the effect of mobile banking on return on assets, evaluate the effect of loan granted to customers on return on assets and ascertain the effect of deposit to banks on return on assets of listed deposit money banks in Nigeria. The study employs an ex-post facto research design. The population of the study was fourteen (14) listed deposits money banks in the Nigerian Exchange Group and 7 deposit money banks was used as sample size employing purposive sampling technique. The data used in the study was sourced from annual reports and statement of accounts of the selected firms between 2014 and 2023. The method of data analysis was descriptive statistic, unit root test, diagnostic test and multiple regression of Panel Least Square (PLS) with the help of E-view 12. The study result indicated that mobile banking has no significant effect on return on assets, loan granted to customers has no significant effect on return on assets, deposit to banks has no significant effect on return on assets of listed deposit money banks in Nigeria. Hence, the study concludes that the effect of financial inclusion on financial performance of listed deposit money banks in Nigeria is not significant. The study recommends amongst other that all banks should encourage their customers to use automated teller machines oftenly based on the results of the study that automated teller machines had a noteworthy effect on return on assets. Relying on automated teller machines would minimize the customers time and costs rather than visiting the branches physically.