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Effect Of E-banking On Bank Profitability
[A STUDY OF GUARANTY TRUST BANK PLC ENUGU] -
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1.6 Significance of Study
The study will aid commercial banks tin Nigeria to understand banking in a new dimension. Exposure from the study will highlight the different benefits of cashless banking and how these measures, if properly taken can reduce operation costs and increase profitability. Besides interest from loans and other investments commercial banks participate in, this study will also introduce a model for banks to adopt the customer convenience model. This model as shown in this study will inform managers of commercial banks on how to serve customers better while gaining their loyalty and money.
1.7 Scope of Study
The study will cover internet banking investments (POS channels, ATM channels) and profit after tax of Guaranty Trust Bank plc. from 2014-2017. The study could not cover other banks due to inadequate disclosure on internet banking investments from these banks and time factor (limited time).
1.8 Definition of Terms
Internet banking: is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred to as; inter net banking, e-banking, virtual banking, online banking.
CBN: Central Bank of Nigeria.
Profitability: the state or condition of yielding a financial gain. It is often measured by price to earnings ratio.
Return on Asset (ROA): this shows the percentage of how profitability a company’s assets are generating revenue.
Return on Equity (ROE): measures the rate of return for ownership interest (shareholders’ equity) of common stock owners. It measures the efficiency of a firm at generating profits from each unit of shareholder equity, also known as net assets or assets minus liabilities. ROE shows how well a company uses investments to generate earnings growth. ROEs 15-20% are generally considered good.
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ABSRACT - [ Total Page(s): 1 ]This study investigated the Returns on Equity and Returns on Asset of Guaranty Trust Bank following the adoption of E-banking in Nigeria: a study of Guaranty Trust Bank Plc 2014-2017. The main objective of the study is to examine the effect of e-banking on profitability of commercial banks in Nigeria using Guaranty Trust Bank (GTBank) plc as a study. One specific objective is to examine to which extent e-banking influences ROA. Three hypotheses were formulated, three research questions. The rese ... Continue reading---
TABLE OF CONTENTS - [ Total Page(s): 1 ]Cover page Title page Declaration page ... Continue reading---
CHAPTER TWO - [ Total Page(s): 4 ]2.4 Theoretical Framework 2.4.1 Rogers’ Diffusion Theory This ubiquitous innovator and early adopter concepts lie in diffusion theory, of which Everett Rogers is considered to be the founding father. The central assumption of the theory is that the spread of technology innovations follows a normal bell-shaped distribution pattern. In this pattern, the theory differentiates between five adopter segments, for which the theory holds to fix assumptions on their size, profiles and adoption de ... Continue reading---
CHAPTER THREE - [ Total Page(s): 1 ]RESEARCH METHODOLOGY 3.1 Introduction The term methodology is used to describe the activities involved in collecting the required information for this research work. This chapter describes how the study was carried out by showing the methods and procedures used for the research and collection of data for the study. It includes the description of the research design, sources of data, instrument for data collection and data analysis and techniques. 3.2 Research Design ... Continue reading---
CHAPTER FOUR - [ Total Page(s): 1 ]DATA PRESENNTATION AND ANALYSIS 4.1 Data Presentation 4.1.1 Necessary Data for Analyses Year ROE ROA WEB ATM 2014 25.28400942 4.393475 348331 133058 2015 23.25102069 4.140622 1894566 1621722 2016 26.59513795 ... Continue reading---
CHAPTER FIVE - [ Total Page(s): 1 ]SUMMARY OF FINDING, CONCLUSION AND RECOMMENDATION 5.1 Summary of Findings Internet banking has no significant impact on Return on Asset Internet banking has no significant impact on Return on Equity ATM transactions has no significant effect on Return on Equity 5.2 Conclusion This study investigated the returns on equity and returns on assets of Guarantee Trust bank following the adoption of electronic banking in Nigeria. Nigeria is a developing country advan ... Continue reading---
REFRENCES - [ Total Page(s): 1 ]Al-hajri, S. (2008) “The Adoption of E-banking: The Case of Omani Banks” International Review of Business Research Papers Vol. 4 No. 5 PP 120-128. Al-Smadi, M. O. (2011). Credit risk, macroeconomic and bank specific factors. Germany: VDM Verlag Dr. Müller. Basel Committee on Banking Supervision (2008) “Risk Management Principles for Electronic Banking” Switzerland Bank for International Settlements. Retrieved 10th July, 2010 from http://www.bis./ ... Continue reading---
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ABSRACT - [ Total Page(s): 1 ]This study investigated the Returns on Equity and Returns on Asset of Guaranty Trust Bank following the adoption of E-banking in Nigeria: a study of Guaranty Trust Bank Plc 2014-2017. The main objective of the study is to examine the effect of e-banking on profitability of commercial banks in Nigeria using Guaranty Trust Bank (GTBank) plc as a study. One specific objective is to examine to which extent e-banking influences ROA. Three hypotheses were formulated, three research questions. The rese ... Continue reading---