HASSAN, Ismaila
Department of Accounting, Faculty of Management Sciences
Kaduna State University, Kaduna, Nigeria
ismailahassan65@gmail.com
HASSAN ALHAJI, Tanko
Department of Accounting, Faculty of Management Sciences
Kaduna State University, Kaduna, Nigeria
tankohassan1996@gmail.com
ABSTRACT
This study examined determinants of profitability of listed deposit money banks (DMBs) in Nigeria from
2013 to 2022 financial years. The study specifically probed the roles of capital adequacy ratio and nonperforming loans on profitability of DMBs. The study used return on asset to represent profitability. Twelve
listed DMBs in Nigeria, which is the entire population was studied. The technique of data analysis is panel
data regression while the source of data is secondary. The results showed that capital adequacy ratio has
positive significant impact on profitability of DMBs; while non-performing loan has a negative significant
impact on profitability. The study concludes that capital adequacy and non-performing loans play essential
roles in the profitability of DMBs; and recommends that in order to increase their profitability, DMBs, their
regulators and policy makers should make policies capable of reducing the level of non- performing loans;
while management of DMBs should maintain an optimum level of capital adequacy so as to remove
difficulties associated with meeting their financial obligations.
Keywords: Capital adequacy ratio, non- performing loans, profitability, deposit money banks.