Financial Performance in Nigerian Banks: The Role of Intangibles

This study examined the impact of intangible assets (IA) on banks’ financial performance (FP), specifically in Nigeria using the five biggest banks in the country. The banks include Zenith Bank, United Bank for Africa, Guarantee Trust Bank, Access Bank, and First Bank of Nigeria. The study sought to address the conflicting findings in light of the paucity of research in developing nations, to determine the relevance of the relationships. Secondary data analysis was used, emphasizing total intangible assets and FP indicators like ROA, EPS and DPS. Using firm size as a control variable for robustness, a panel data analysis method was used while Eviews software was employed to analyze the data culled from the banks’ financial reports over ten years (2013–2022). The natural log of total assets indicates firm size, whereas the natural log of all intangible assets represents intangible assets. The findings showed intangible assets have positive significant relationships with all the FP metrics (ROA, DPS, and EPS) used. The study concluded that the IA of Nigerian banks impact their FP positively and significantly. Banks should prioritize investments in IA, to enhance the profitability metrics such as ROA, DPS, and EPS.