A Panel Data Analysis of Asset and Liability Management On Performance of Some Selected Nigerian Commercial Banks

Researchjournali’s Journal of Finance
Vol. 2 | No. 11 November | 2014 ISSN 2348-0963

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A Panel Data
Analysis Of Asset
And Liability
Management On
NJOGO, B.O (PhD)
Department of Economics, Accounting and
Finance, College of Management Sciences, Bells
Performance Of Some University of Technology, Ota, Nigeria
OHIAERI, N
Selected Nigerian Department of Finance, Faculty of Business
Administration, University of Lagos
Commercial Banks OMISAKIN, J. O
Department of Economics, Accounting and
Finance, College of Management Sciences, Bells
University of Technology, Ota, Nigeria

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ABSTRACT
This study sought to examine the Asset and Liability management of 15 Nigerian banks from 2008 to 2012
and found that all variables of interest (assets and liabilities management of Nigerian banks) show positive
and a strong relationship with profitability within the period of this study. This shows that the due process of
asset and liability management instituted by the apex regulatory authorities in Nigeria within the period of this
study have been effective. The study therefore, recommends among others, surplus optimization of bank
resources which proves the necessity for available assets maximization to meet rising in complex liabilities.
Keywords: Profit per shareholders fund, Total liability per shareholders fund, customer’s deposit
1. INTRODUCTION
Asset and liability management refers to the process by which an institution manages its balance sheet in
order to accommodate for any alternative such as; interest rate risk and liquidity risk. It is used to determine
and control risk faced by a bank. In managing risks, asset and liability management is used to access and
minimize some of these risks by taking appropriate decisions. macennskiene (2000).notes that banks engage
in asset – liability management to achieve three main goals : to ensure high profitability, to maintain desired
liquidity level and to ensure security ,
Commercial banks play crucial roles in wealth distribution to all sectors of the economy, in terms of deposits
and disbursement of credit. Its primary aim is; profit maximization, risk control, liquidity / capital adequacy
and to increase its market share. To achieve all these, there is need for proper assets and liabilities
management in the bank. The main challenges that face asset and liability management is the fact that the
main asset of commercial banks credit cannot always be liquid, especially if the country’s economy is in deep
recession. The high level of competition among business that involves both assets and liabilities, together
with increasing changes in the domestic interest rates and foreign exchange rate have brought pressure on the
management of banks to maintain a good balance among spreads, profitability and long term viability. These
pressures call for structured measures and not just actions. Angele (2008) opines that the strategy of
maintaining bank asset and liability allows for achieving banking harmony which reflects in sound
performance that actualizes profit maximization and attainment of desired liquidity preference.
Asset and liability management control risks for shareholders and it also increase more benefit to
shareholders. Since one of the main duties of banks financial management is asset and liability management,
banks apply asset and liability techniques to increase more benefit by covering themselves from risks, and
minimizing losses coming from transactions.
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Management of assets and liabilities of banks is never easy, because a lot of problems are usually been
encountered. And this problems range from collection of information required, currency risk management,
deregulation of interest rates and operational flexibility given to banks in pricing. The objectives of this
research include:
 To examine the impact of asset management on performance of Nigerian commercial banks
 To determine the impact of liability management on performance of Nigerian commercial Banks
 To evaluate the impact of customers’ deposit on performance of Nigerian commercial bank and the
following hypotheses will be tested in the course of this study;
 Asset management does not have positive and significant impact on performance of Nigerian
commercial banks.
 Liability management does not have positive and significant impact on performance of Nigerian
commercial banks.
 Customers’ deposit management does not have positive and significant impact on performance of
Nigerian commercial banks.
This paper is organised as follows: Section One introduces the paper. Section Two discusses the Literature
Review, Methodology and model specification is in Section Three. While Section Four, presents data analysis
/ discussion of results, Section Five concludes the paper.
2. LITERATURE REVIEW
2.1 THEORETICAL REVIEW

The assets and liabilities of the bank’s balance sheet are nothing but future cash inflows or outflows, it entails
understanding risks and return tradeoffs and making them clear so that the board of directors and senior
management can make informed business judgment about the best course for the micro financial institution
Jasienė (1998), An insight view of asset and liability management simply combines asset, liability and
spread management). There are some theories underlying the revolution of bank assets and liabilities
management and they include:
 Commercial loan theory or the real bills doctrines;
 Shift ability theory;
 Anticipated income theory; and
 Liability management theory Elliot,( 1984), Osofisan, (1993)
Commercial loan theory
This stipulates that for bank loan to be short-term, self-liquidating and productive, commercial paper maturity
should be of less than one year. According to Soyinbo (1991), the theory require that banks should not grant
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long term loan such as estate loans and loans for financing the purchase of plants and equipment because they
are considered too liquid.
The shift ability Theory
The theory, broadly views banking from a different perspectives and redirects the attention of bankers and
regulators from loan to investment as a source of liquidity. Investments that meet the shift ability theory
criterion are generally short-term in nature, for example treasury bills, call loans and government securities.
Two major differences can be seen in the portfolio mix of bank following the shift ability theory compared
with those following the commercial loan theory. First, a higher proportion of loans for non-commercial
purpose is higher in the shift ability theory. Such loans include mortgages, personal loans and longer-term
business loans. Thus the test of an acceptable bank asset becomes whether it can be shifted’ to another owner
at no financial loss (Elliot, 1984).
The Anticipated Income Theory
This theory contrast the commercial loan theory by stating that it is quite appropriate for banks to give long
term and non -business loans as long as the borrower has ability to repay the loan out of future earnings ,
Soyibo (1994). Under this theory, it is acceptable for banks to engage in a long term lending to businesses,
consumer installment loans and amortized real estate mortgage loans.
The Liability Management Theory
This theory recognizes the fact that asset structures of a bank has a prominent role to play in providing it with
liquidity that it needs. The approach is considered more aggressive than the other methods as it enhances
fund raising opportunities for execution of attractive investments. Osifisan, (1993) notes that banks in U.S.A.
from 1960 adopted this strategy by sourcing for potential depositors more aggressively by creating marketing
departments to be able to remain profitable business.
Although asset-liability management is not a new planning tool, it has evolved from the simple idea of
maturity-matching of asset and liabilities of various time horizons into a framework that includes
sophisticated concepts.
2.2 EMPIRICAL REVIEW

Empirically, the most recent work on asset – liability management is the work of Ajibola, John and Lezaasi
(2013), in examining the management of the financial statement of the bank between 2007 to 2011, using
Goal programming technique found out that the goals formulated can be maximally attain besides the goal of
liability reduction, they therefore, suggested that bank should convert their liabilities to earning assets as soon
as possible.
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Sohela, Mehrzed and Hadi (2013) applied a mathematical model which was designed in order to meet the
optimum management of assets and liabilities of one of the banks in malta, the results showed that optimum
management of assets – liabilities of banks was possible so as to determine suitable structure for items of its
balance sheet.
Tamiru (2013) carried out a research on asset liability management and commercial Banks profitability in
Ethiopia, the study examined the effect of ALM on commercial banks profitability in Ethiopian financial
market. The SCA model was used to estimate the profitability which is measured by ROA as a function of
balance sheet and macroeconomic explanatory variables. The model hypothesize that the rate of return on
earning assets is positive and varies across assets, and the rate of cost on liabilities is negative and varies
across liabilities.
Akinde (2011) examined liquidity series of three Nigerian banks with a view to indicating any weakness
noticed, employing ordinary least square finds out that proxies of liquidity series and Tobi’s q of the banks
are significant.
Angele (2008) in her research on analysis of chosen strategies of asset and liability management in
commercial banks, , found out that the core problem in asset and liability management is the fact that the main
asset of commercial bank credits cannot always be liquid, especially if the country’s economy is in deep
recession.
In the study of Kosmidou and Zopounidi (2004) on a multi criteria methodology for bank’s asset and liability
management examines 2000 years balance sheet of one of the Greek banks with the aid of Goal programming
found out that the best combination of variables (bond, deposit and facilities) with highest return was selected.
At the same time, Giokas and Vassiloglou (1991) applied a goal programming model in their study, using
large banks in Greek as case study, concluded that management of banks should purse goal of profit
maximization and optimum allocation of risks in their capital.
3. RESEARCH METHODOLOGY
3.1 POPULATION AND SAMPLE OF THE STUDY

This study examines fifteen commercial banks quoted in the Nigerian stock exchange (NSE).
3.2 NATURE AND SOURCES OF DATA

Data was sourced from secondary means. Secondary data is data which has been collected by individuals or
agencies for purposes other than those of our particular research study (Onwumere, 2005). The justification
for the use of secondary data in this research is that; it is available (NSE Fact Book for 2011/2012.) which is
entirely appropriate and wholly adequate to draw conclusions and answer the question or solve the problem.
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Therefore, the data used for this research was generated from the Nigerian Stock Exchange Fact Book for
2011/2012.
3.3 MODEL SPECIFICATION

To examine the effect of Asset and Liability Management on commercial banks performance in Nigeria, this
study adopted the Statistical Cost Accounting (SCA) Model with some adjustment to examine the effect of
asset and liabilities on commercial banks of Nigeria during the sample period of 2008-2012. This model
makes use of firm’s balance sheet items in order to interpret returns in capital structure earnings on firm’s
assets and liabilities.
Thus for hypothesis one which states that Asset management does not have positive significant effect on
Nigerian commercial banks performance. It was represented as;
Patsh = α + βTash + µ………………………………………………………… (i)
Where;
Patsh= Profit per shareholders fund
Tash =Total asset per shareholders fund
α= Intercept
β=Coefficient parameter
µ=Random error term
For hypothesis two which states that liability management does not have positive significant impact on
Nigerian commercial banks performance. It was represented by:
Patsh = α + βTlsh + µ………………………………………………………… (ii)
Where;
Tlsh =Total liability per shareholders fund
α= Intercept
µ=Random error term
Lastly for hypothesis three which states that Customer Deposit management does not have positive and
significant impact on Nigerian commercial banks performance, it was represented as:
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Patsh = α + βCdsh + µ………………………………………………………… (iii)
Where;
Cdsh =Customer deposit per shareholders fund
α= Intercept
µ =Random error term
3.4 TECHNIQUES OF ANALYSIS

The data presented is panel data hence the Panel Ordinary Least Regression model was used to test the
hypotheses stated in this study. And descriptive statistics and correlation matrix analysis will also be
employed to determine normality and direction of relationship variables.
4. DATA ANALYSIS / DISCUSSION OF RESULTS
Descriptive statistics of Profit per shareholders fund, customer deposit per shareholders fund, total liability
per shareholders fund and total asset per shareholders fund is presented in table
Table 1: Descriptive Statistics

PATSH CDSH TLSH TASH
Mean 0.262735 5.321813 5.817756 8.253595
Median 0.113050 4.019980 4.960260 5.554430
Maximum 2.322630 35.76162 17.89030 106.2907
Minimum 0.000160 0.939130 0.716930 0.783530
Std. Dev. 0.474504 5.449161 3.634940 12.51669
Skewness 3.221261 3.809013 1.609354 6.689296
Kurtosis 13.04888 19.63040 5.467534 51.90932
Jarque-Bera 445.2688 1045.639 51.40252 8034.712
Probability 0.000000 0.000000 0.000000 0.000000
Observations 75 75 75 75
Source: Researcher’s Eview Result
Note :PATSH= profit per shareholders fund, CDSH= customer deposit per shareholders fund, TLSH= total
liability per shareholders fund, TASH= total asset per shareholders fund
As indicated from table 1, the average value of Profit per Shareholders fund within the period of this study
was 26.3% while the median value was 11.3%. The banks Profit per Shareholders were maximum with the
value of 2.32 and a minimum value of 0.0002. It has a standard deviation within group of 0.47. As revealed
by the skewness of Profit per Shareholders, there was a positive skewness (3.22) Profit per Shareholders
indicating that the degree of departure from the mean of the distribution is positive revealing that overall there
was a consistent increase in Profit per shareholders fund from 2006 to 2010 among the banks.
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Though as indicated by the Kurtosis which was 13.05 > 3 which is the normal value indicates that the degree
of peakedness within the period of this study were not normally distributed as most of the values depart from
the mean.The Jarque-Bera statistic shows that the JB statistics is about 445.27, and the probability of
obtaining such a statistic under normality assumption is 0.00 percent. We therefore, reject the hypothesis that
stated “Profit per Shareholders fund is normally distributed”.
The second column from table 1 showed the customer deposit per shareholders fund within the period of this
study was 532% while the median value was 401%. The banks Profit per Shareholders were maximum with
the value of 35.8 and a minimum value of 0.94. It has a standard deviation within group of 5.45. As revealed
by the skewness of customer deposit per shareholders fund, there was a positive skewness (3.8) customer
deposit per shareholders fund indicating that the degree of departure from the mean of the distribution is
positive revealing that overall there was a consistent increase in gross customer deposit per shareholders fund
2006 to 2010 among the banks. Though as indicated by the Kurtosis which was 19.6 > 3 which is the normal
value indicates that the degree of peakedness within the period of this study were not normally distributed as
most of the values depart from the mean. The Jarque-Bera statistic indicates that the JB statistics is about
1045.6, and the probability of obtaining such a statistic under normality assumption is 0.00 percent. Therefore
we reject the hypothesis that customer deposit per shareholders fund is normally distributed.
As indicated from table 1 and in column 3, the average value of total liability per shareholders fund within the
period of this study was 582% while the median value was 496%. Total liabilities per shareholders fund were
maximum with the value of 17.9 and a minimum value of 0.91. It has a standard deviation within group of
3.63. As revealed by the skewness of total liability per shareholders fund, there was a positive skewness
(1.61), total liability per shareholders fund indicates that the degree of departure from the mean of the
distribution is positive revealing that overall there was a consistent increase in total liability per shareholders
fund from 2006 to 2010 among the banks. Though as indicated by the Kurtosis which was 5.47 > 3 which is
the normal value indicates that the degree of peakedness within the period of this study were not normally
distributed as most of the values depart from the mean.
The Jarque-Bera statistic shows that the JB statistics is about 51.4, and the probability of obtaining such a
statistic under normality assumption is 0.00 percent. Therefore we reject the hypothesis that Profit per
Shareholders fund is normally distributed. For total asset per shareholders fund, the mean value within the
period of this study was 825% while the medium value was 555% of the total asset per shareholders. As
revealed by the skewness of total asset per shareholders fund, there was a positive skewness (6.69) indicating
that the degree of departure from the mean of the distribution is positive revealing that in overall there was a
consistent increase in total asset per shareholders fund from 2006 to 2010. Though as indicated by the
Kurtosis which was 51.9 > 3 which is the normal value indicates that the degree of peakedness within the
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period of this study were not normally distributed as most of the values hover far from the mean.The Jarque-
Bera statistic is an indication of the normality of distributions was 8034.7 and since the probability equal to
zero, the distribution is not normally distributed.
Table .2 presents the Correlation Matrix of Profit per shareholders fund, customer deposit per shareholders
fund, total liability per shareholders fund and total asset per shareholders fund.
Table 2: Correlation Matrix

PATSH TASH TLSH CDSH
PATSH 1.000000 0.468829 0.512780 0.550697
TASH 0.468829 1.000000 0.351510 0.330033
TLSH 0.512780 0.351510 1.000000 0.449450
CDSH 0.550697 0.330033 0.449450 1.000000

Note: PATSH= profit per shareholders fund, CDSH= customer deposit per shareholders fund, TLSH= total
liability per shareholders fund, TASH= total asset per shareholders fund
Table 2 above shows the correlation matrix of all the variables with all showing positive correlation between
profits per shareholders fund and total asset per shareholders fund, total liability per shareholders fund and
customer deposit per shareholders fund and with a value of 0.47, 0.51and 0.55 respectively. Furthermore,
total asset per shareholders fund exact a positive relationship with liability per shareholders fund and
customer deposit per shareholders fund with values of 0.35 and 0.33 respectively. The table also shows a
positive relationship between total liability per shareholders fund and customer deposit per shareholders fund
with values of 0.45.
4.1 TEST OF HYPOTHESES

Three steps were used to test the hypotheses. In step one; the hypotheses were restated in null and alternate
forms. In step two, the results were analyzed while in step three, decisions were made. The decision rule
involved the rejection or acceptance of the null or alternate hypotheses based on criterion of the techniques of
analyses.
4.1.1 TEST OF HYPOTHESIS ONE

Step One: Restatement of the Hypothesis in Null and Alternate forms:
Ho1: Asset management does not have positive and significant impact on performance of Nigerian
commercial banks
Ha1: Asset management have positive and significant impact on performance of Nigerian commercial banks
Step Two: Presentation and Analysis of Result

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Table 3: Regression Result for Hypothesis One

Dependent Variable: PATSH
Method: Pooled Ordinary Least Squares
Sample: 1 75
Included observations: 75
Variable Coefficient Std. Error t-Statistic Prob.
C 0.209910 0.065263 3.216350 0.0019
TASH 0.006400 0.004373 1.463481 0.0426
R-squared 0.528503 Mean dependent var 0.262735
Adjusted R-squared 0.495195 S.D. dependent var 0.474504
S.E. of regression 0.470885 Akaike info criterion 1.357899
Sum squared resid 16.18649 Schwarz criterion 1.419699
Log likelihood -48.92122 F-statistic 2.141777
Durbin-Watson stat 1.470230 Prob(F-statistic) 0.042629
PATSH = 0.21 + 0.006TASH
Table 3 shows the result of the regression estimated of the effect of asset management on the commercial
banks performance from 2006 to 2010. The result reveals that the coefficient of variation of our model for the
study is well fitted (F-statistic=2.14) with is statistically significant at 0.04 on an assumption of 5% level of
significance. The coefficient of determination (R-square), which indicate 52.8% of total variation explained
by independent variables in question and was moderated by the Adjusted R-squared to 49.5%. The remaining
47.2% indicates that there are other variables other than our explanatory variable that might also explain
changes in the dependent variable. The result shows that TASH is positively signed and statistically
significant, which proves positive effect on the PATSH of commercial banks (TASH coefficient = 0.006, t-
value = 1.46, p = 0.04 < 0.05). It means that if TASH changes by 1 unit or percent, PASH will change by
0.006 unit or percent.
Decision
Base on the result above, we reject the null hypothesis and accept the alternate, thus, there is a positive
significant impact of Asset management on Nigerian commercial banks performance
4.1.2 TEST OF HYPOTHESIS TWO

Ho2: Liability management does not have positive and significant impact on performance of Nigerian
commercial banks.
Ha2: Liability management have positive and significant impact on performance of Nigerian commercial
banks.

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Table 4: Regression Result for Hypothesis Two

Sample: 1 75
Variable Coefficien Std. Error t-Statistic Prob.
t
C 0.017601 0.099014 0.177758 0.8594
TLSH 0.042136 0.014461 2.913798 0.0047
PATSH = 0.016 + 0.042TLSH
Table 4. shows the result of the regression analysis of the effect of liability management on commercial bank
performance. The result reveals that the model for our study is well fitted (F-statistic= 8.49 and a P-value of
0.004). The coefficient of determination (R-square), which measures the goodness of fit of the model,
indicates that 64.2% of total variations explained by the variables in question and was moderated by the
Adjusted R-squared to 59.2%.The remaining 35.8% shows that there are other variables other than our
explanatory variables that might also impact on the dependent variable. The result shows that TLSH has a
positive and significant impact on the PATSH of commercial banks in Nigeria (TLSH coefficient = 0.042, t-
value = 0.96, P =0.0047<0.05). This could be explained as in every unit change in TLSH, there will be a
0.042 change in PATSH and it is statistically not equal to zero.
Decision
From the analysis above we rejected the null hypothesis but accept the alternate which indicates that the
impact of liability management on commercial bank performance in Nigeria is positive and significant.
4.1.3 TEST OF HYPOTHESIS THREE

Ho3: Customer Deposit management does not have positive and significant impact on performance of
Nigerian Commercial Banks
Ha3: Customer Deposit management have positive and significant impact on performance of Nigerian
Commercial Banks
Table 5: Regression Result for Hypothesis Three

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Sample: 1 75
Variable Coefficient Std. Error t-Statistic Prob.
C 0.090949 0.071851 3.265799 0.0696
CDSH 0.032280 0.009466 3.410197 0.0011
PATSH = 0.091 + 0.032CDSH
Table 5 shows the result of the regression analysis of the effect of asset Customer Deposit on the commercial
banks performance from 2006 to 2010. The result shows that the coefficient of variation of our model for the
study is well fitted (F-statistic=11.63) with a probability value of 0.001 on an assumption of 5% level of
significance. The coefficient of determination (R-square), which measures the goodness of fit of the model,
indicates that 68.7% of the variations observed in the dependent variable were explained by the independent
variable and was moderated by the Adjusted R-squared to 65.1%. The remaining 34.9% indicates that there
are other variables other than our explanatory variable that might also explain changes in the dependent
variable. The result shows that CDSH has a positive and significant effect on the PATSH of commercial
banks (TASH coefficient = 0.032, t-value = 3.41, p = 0.001 < 0.05). It means that if CDSH changes by 1 unit
or percent, PASH will change by 0.032 unit or percent.
Decision
Base on the result above, we reject the null hypothesis and accept the alternate, customer deposit exert
positive and strong impact on commercial banks performance.
5. CONCLUSION
The exact roles and perimeter around ALM can vary significantly from one bank to another depending on the
business model adopted and can encompass a broad area of risks. The traditional ALM programs focus on
interest rate risk and liquidity risk because they represent the most prominent risks affecting the organization
balance-sheet (as they require coordination between assets and liabilities). But ALM also now seeks to
broaden assignments such as foreign exchange risk and capital management. To resume, the ALM function
scope covers both a prudential component (compliance : implementation and monitoring with internal rules
and regulatory set of rules) and an optimization role (management of funding costs, generating results on
balance sheet position) And intervenes on that issues on current business activities but is also consulted to
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organic development and external acquisition to analyze and validate the funding terms options, conditions of
the projects and any risks (i.e. funding issues in local currencies).
Today, many corporations other than financial institutions adopted ALM techniques and processes. It was
therefore against the forgoing that this study examines then Asset and Liability management of 15 Nigerian
banks from 2008 to 20012 and found that all the parameter of assets and liability management of Nigerian
banks had positive and significant impact on profitability within the period of this study. This shows that the
due process of asset and liability management instituted by the apex regulatory authorities in Nigeria within
the period of this study have been effective.
6. RECOMMENDATION
The study recommends the following.

 The study recommends surplus optimization of bank resources which explains the need to maximize
assets available to meet increasingly complex liabilities.
 As financial intermediaries, banks take in deposits on which they are obligated to pay interest
(liabilities) and make loans on which they receive interest (assets), in this case, banks need to manage
interest rate risk, which can lead to a mismatch of assets and liabilities.
 To the extent that a bank borrows short term and lends on long term, it has a mismatch, therefore, we
recommends that banks needs to address this through restructuring of assets and liabilities or using
derivatives (swaps, options and futures) to satisfy the latter.
7. REFERENCES
Akinde, M.A (2011), A Perspective on Liquidity and Assets Management of Commercial Banks in Nigeria: Evidence from Some
Selected Banks, Journal of Emerging Trends in Economics and Management Sciences,(ISSN: 2141-7024). Pg 454-460.
Ajibola, A; John .O; and Lezaasi. T (2013) “Financial Statement Management Liability Reduction and Asset Accumulation: An
Application of Good Programming Model to Nigeria Bank.” International Journal of Financial Research.
Angele, L. (2008) “Analysis of chosen strategies of asset and liability management in commercial Banks”. Journal of Economics of
Engineering Decision. ISSN 1392-2785.(2), 57.
Elliot, J. W., ( 1984 ) “ Money, Banking and Financial Markets, West Publishing Company , New York.
Giokas and Vassiloglou (1991) “A Good Programming Model for bank assets and liabilities”: European Journal of Operations
Research. PP, 48 – 60.
Janssen J., 1993, "Asset liability management for banking and insurance",Proceedings of the ISI 49th Session, Firenze, 253-269
Kosmidou, K and Zopounidi, C (2004) “Goal Programming Tecniques for Banks asset – Liability Management.” Kluwer Academics
Publishers.
Luckett, D. G., (1984) “ Money and Banking, McGraw Hill, New York.
Macennskiene, I (2000) “Banko Paskolu Portfolio Vaidymas Tyrimo metadologinai aspektai socialinnai mokslai, (5) 45.”
Onwumere, J.U.J. (2009), “Business and Economic Research Methods Vougasen Limited, Enugu.
Gujarati, D. (2009) “Basic Econometrics; 3rd Edition, McGraw. Hill, New York.
14
Osifsan, A.O., (1993 ) “ An asset portfolio management model for Nigerian Commercial Banks:A case study ’, Department of
Economics , University of Ibadan, MBA Project Report.
Soheyla, N., Mehized, M., and Hadi, P.G (2013) “Asset and Liability Optimal Management Mathematical Modeling for Banks”.
Journal of Basic and applied Scientific Research, 3(1), 484 – 493.
Soyibo, A. ( 1994) “ Managing bank assets in a depressed economy ”, a paper presented at Union Bank of Nigeria Area Managers”s
Conference, Ibadan,
Soyibo et al, ( 1991), “ Financial System Regulation, Deregulation and Savings Mobilisation in Nigeria , African Economic Research
Consortium, Nairobi , Kenya.
Tamiru (2013), Asset Liability Management and Commercial Banks Profitability in Ethiopia,Research Journal of Finance and
Accounting, ISSN 2222-1697 (Paper) ISSN 2222-2847 Vol.4, No.10, 2013,Pg 77-87

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Researchjournali’s Journal of Finance

Vol. 2 | No. 11 November | 2014 ISSN 2348-0963

Department of Economics, Accounting and

Finance, College of Management Sciences, Bells

Performance Of Some University of Technology, Ota, Nigeria

Selected Nigerian Department of Finance, Faculty of Business

Administration, University of Lagos

Commercial Banks OMISAKIN, J. O

Department of Economics, Accounting and

Finance, College of Management Sciences, Bells

University of Technology, Ota, Nigeria

2.1 THEORETICAL REVIEW

Commercial loan theory

The shift ability Theory

The Anticipated Income Theory

The Liability Management Theory

2.2 EMPIRICAL REVIEW

3.1 POPULATION AND SAMPLE OF THE STUDY

3.2 NATURE AND SOURCES OF DATA

3.3 MODEL SPECIFICATION

Patsh = α + βTash + µ………………………………………………………… (i)

Patsh= Profit per shareholders fund

Tash =Total asset per shareholders fund

µ=Random error term

Patsh = α + βTlsh + µ………………………………………………………… (ii)

Patsh= Profit per shareholders fund

Tlsh =Total liability per shareholders fund

µ=Random error term

Patsh = α + βCdsh + µ………………………………………………………… (iii)

Patsh= Profit per shareholders fund

Cdsh =Customer deposit per shareholders fund

µ =Random error term

3.4 TECHNIQUES OF ANALYSIS

4. DATA ANALYSIS / DISCUSSION OF RESULTS

Table 1: Descriptive Statistics

Table 2: Correlation Matrix

TASH 0.468829 1.000000 0.351510 0.330033

TLSH 0.512780 0.351510 1.000000 0.449450

CDSH 0.550697 0.330033 0.449450 1.000000

Source: Researcher’s Eview Result

4.1 TEST OF HYPOTHESES

4.1.1 TEST OF HYPOTHESIS ONE

Step Two: Presentation and Analysis of Result

Table 3: Regression Result for Hypothesis One

4.1.2 TEST OF HYPOTHESIS TWO

Step Two: Presentation and Analysis of Result

Table 4: Regression Result for Hypothesis Two

4.1.3 TEST OF HYPOTHESIS THREE

Step Two: Presentation and Analysis of Result

Table 5: Regression Result for Hypothesis Three

Dependent Variable: PATSH

The study recommends the following.

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