1Unity Bank Plc Wukari-Nigeria, Doctoral student Department of Banking & Finance, Nnamdi Azikiwe University Awka-Nigeria
2Department of Banking & Finance, Federal University Wukari-Nigeria
3Department of Banking & Finance, Nigerian Army College of Environmental Science & Technology, Makurdi-Nigeria
4Department of Banking & Finance, Nnamdi Azikiwe University Awka-Nigeria
Journal of Finance and Economics.
2020,
Vol. 8 No. 4, 152-160
DOI: 10.12691/jfe-8-4-1
Copyright © 2020 Science and Education PublishingCite this paper: ADIGA Dauda Leviticus, HARUNA Habila Abel, YUA Henry, ADIGWE Patrick Kanayo. Effect of Selected Macroeconomic Variables on the Profitability of Deposit Money Banks in Nigeria: 2007-2018.
Journal of Finance and Economics. 2020; 8(4):152-160. doi: 10.12691/jfe-8-4-1.
Correspondence to: HARUNA Habila Abel, Department of Banking & Finance, Federal University Wukari-Nigeria. Email:
harunaabel@fuwukari.edu.ngAbstract
This study examines the effect of selected macroeconomic variables on the profitability of deposit money banks in Nigeria. The study is based on the arbitrage pricing theory (APT) propounded by Ross (1976) and secondary data was used for the study. The hypotheses were tested using the OLS multiple regression analysis and results reveal that, Interest rate (H01) with B = -0.254, t = -0.237, p = .819; Exchange rate (H02) with B = -0.076, t = -2.093, p = .075 Gross domestic product (H03) with B = 0.643, t = 0.545, p = .602 and Inflation rate (H04) with B = 0.182, t = 0.343, p = .743 are not significant predictor of Net interest margin. The implication is that, the selected macroeconomic variables are not a significant predictor of deposit money bank profitability for the period of study.
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