EFFECTS OF CORONA VIRUS (COVID-19) PANDEMIC ON FINANCIAL PERFORMANCE OF NON-INTEREST BANKS IN NIGERIA
Ibrahim Mohammed Lawal and Mohammed IsaTela
Volume 7 Issue 1
Abstract
The paper seeks to examine the effects of Corona virus pandemic on the financial performance of Non-interest banks in Nigeria. Descriptive analysis was used based on secondary data of the unaudited quarterly report of Jaiz Bank Plc from Q1, 2019:Q3, 2020. Convenience sampling was used in identifying the selected bank. Simple tables, percentages and relevant ratios within the framework of the CAMEL model were used for the analysis. The study revealed that the bank’s assets, deposits, income and profit after tax were affected by the pandemic because there was a marginal reduction in their performances. Likewise, the capital adequacy ratio (CAR) of the bank was also affected because there was a minimal reduction on its ratio, though the bank is still within the safe position. Furthermore, the findings revealed that the bank is still liquid and having improved earnings as evidenced in its return on asset (ROA) and return on equity (ROE) where their ratio exceeds the banking industry baseline. Additionally, the study shows that the bank management is efficient, owing to the fact that the bank was able to reduce its cost and operate a profit level despite the pandemic. The study therefore concluded that the corona virus pandemic has little or no effect on the financial performance of Noninterest banks in Nigeria which reveals the resilience nature of the banking model to shocks.
Download Paper