FINANCIAL PERFORMANCE OF ACCESS BANK BEFORE AND AFTERACQUISITION OF DIAMOND BANK

OKONJI Patrick Sunday
Department of Business Administration
Faculty of Management Sciences
University of Lagos Lagos, Nigeria
ADEBISI Sunday Abayomi
Department of Business Administration
Faculty of Management Sciences
University of Lagos Lagos, Nigeria
AKINSANYA Damilola Omowunmi
Department of Business Administration
Faculty of Management Sciences
University of Lagos Lagos, Nigeria
SHOMOYE Maryam Adeyinka
Department of Business Administration
Faculty of Management Sciences
University of Lagos Lagos, Nigeria
ABSTRACT
The competitive and volatile business environment has fundamentally transformed how businesses operate.
Businesses now recognize the environment as a vital factor in discussions on achieving long-term survival and
sustainable competitive edge. This study investigated Access Bank’s financial performance before and after the
acquisition of Diamond Bank. A quantitative research design was employed, using annual reports from 2016 to 2022 to analyze financial ratios. The research utilizes independent t-tests and correlation analysis. The t-test revealed no significant difference in Access Bank’s financial ratios before and after the acquisition, specifically with regards to Return on Assets (ROA) and Return on Equity (ROE). Furthermore, the correlation analysis showed a moderately strong positive linear relationship between ROE and ROA within Access Bank. This suggests that the acquisition did not lead to significant changes in the bank’s financial performance, but there is a consistent relationship between these key financial indicators.
Keyword: Acquisition, financial performance, return on asset, return on equity