Mergers And Acquisition And Selected Banks Performance in Nigeria

ABSTRACT 

This study investigated the effect of “Mergers and Acquisition and selected Banks’ performance” in Nigeria. It was necessitated by the frequent incidence of bank failures in Nigeria which has resulted in liquidation of some Banks and its attendant unemployment, loss of customers’ deposits and credit to prospective borrowers. The study relied mainly on secondary data for the analyses and covered the 1997 to 2014 period. The banks were randomly selected, while the analysis was done using paired sample t-test to test the difference between the means of two period (pre and post) Mergers and acquisitions. The findings reveal that Mergers and Acquisitions have mixed effects on banks’ performance. For First Bank Plc Mergers and Acquisitions significantly impacted on the Bank’s Profit After tax and Return on Asset but did not impact significantly on the Bank’s Return on Equity. For Union Bank Plc Mergers and Acquisitions do not have significant impact on the Bank’s Profit After Tax, Return on Equity and Return on Asset. For United Bank for African (UBA) Plc Mergers and Acquisitions significantly impacted on the bank’s Profit After Tax, Return on Equity and Return on Asset. The factors militating against banks’ performance include; Low Capital Base, poor corporate governance practices, over reliance on public sector funds, weak infrastructure, insufficient regulation and reporting, lack of professionalism among others. It is recommended that Mergers and Acquisitions, good corporate governance, adequate capital base and financial reporting are useful for banks survival. The study will help corporate managers in decision making.