High Operating Expenses Drag Down Nigerian Banks' Profitability, Study Finds
The study analyzed the profitability of banks in Nigeria using the DuPont model. They looked at ten banks over ten years and found that net profit margin was the main factor affecting their return on equity. Banks with high operating expenses had lower profitability. To improve returns, banks should focus on maintaining a good balance between low-cost deposits and well-priced loans, diversifying income sources, and managing expenses wisely.