UMOREN, A. O. and Olokoyo, F. O. and Adetula, D. T.
(2007)
MERGER AND ACQUISITION IN NIGERIA: ANALYSIS OF PERFORMANCE PRE-AND-POST CONSOLIDATION.
Lagos Journal of Banking, Finance and Economic Issues, 1 (1).
pp. 1-193.
ISSN 978-36813-1-1
Abstract
Abstract
The banking reform pronounced on the 6th of July, 2004 had been a major wave towards a diversified, strong and reliable banking sector in Nigeria. This paper examined the mega banks by evaluating their performance four years after the consolidation exercise in Nigeria. It examined the impact of consolidation on performance and considers if there had been considerable improvement on their profitability, liquidity and solvency. In this study, we analyzed the performance ratio of a sample of thirteen (13) mega banks. A descriptive analysis of these performance ratios was carried out. Correlation Analysis was used to test the impact of the consolidation on the performance measurement parameters. We found that, on average, bank consolidation resulted into improved performance. The paper therefore suggests that the bank management should embrace broad product strategies, which could help in generating more income for the banks. They should also embrace diversification and financial innovation in order to produce new products and services.
Keywords: Consolidation, Bank reforms, Performance measures, Ratios
JEL Classification: G21, G28, G34
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