Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 08 May 2020

Electronic Banking and Profitability: Empirical Evidence from Selected Banks in Nigeria

Nkiru Peace Nwakoby, Janefrances N. Okoye, Raymond A Ezejiofor, Chika C. Anukwu, Augustina Ihediwa

Nnamdi Azikiwe University, Nigeria

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Pages: 637-649

Keywords: ATM Payment, POS Payment, Mobile Payment and Return on Equity


This study examines the link between electronic banking and profitability of Nigerian deposit money banks. The study adopted Ex post facto, research design. A sample size of 9 deposit money banks in Nigeria were employed from the population of 15 banks quoted on the Nigerian Stock Exchange. Data was collected from annual reports and accounts of the sampled banks and CBN Statistical bulletins for the periods from 2009 to 2018. The study employed regression analysis to test the formulated hypotheses with aid of E-View 9.0. Based on the data analyzed, the followings were revealed; that Automated Teller Machine (ATM) payment method has negative effect on return on equity of deposit money banks in Nigeria and this effect is not statistically significant; that Point of Sales (POS) payment methodmethodsitive effect on return on equity of deposit money banks in Nigeria and this effect is not statistically significant and that Mobile banking Payment (MPAY) has positive effect on return on equity of deposit money banks in Nigeria and this effect is statistically significant. It recommended that Nigerian banks should embark on sensitization programme to education their customers on ATM usage.


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