DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED PRIMARY MORTGAGE BANKS IN NIGERIA

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DETERMINANTS OF FINANCIAL PERFORMANCE OF LISTED PRIMARY MORTGAGE BANKS IN NIGERIA

ABSTRACT

The bane of housing delivery and the development of a virile mortgage system in Nigeria has

always been that of accessing land and low-cost finance. Primary Mortgage Banks (PMBs) were

established to facilitate housing delivery in Nigeria through the institution of a private-sector

arrangement to supplant the public sector which had proved ineffective over the years in that

respect. This study examines the determinants of financial performance of listed primary mortgage

banks in Nigeria. The study employed the use of explanatory research design and secondary data

contained in the annual reports and accounts of listed PMBs for a period of ten (10) years (2004

to 2013) was used for the study. The result of the pooled Ordinary Least Square (OLS) multiple

regression analysis revealed a negative significant effect of capital adequacy and bank size on the

financial performance (return on equity) of listed PMBs in Nigeria. It also shows that liquidity is

insignificant to explain the financial performance of listed PMBs in Nigeria. It therefore

recommends that to ensure maximum return of equity holding of listed primary mortgage banks in

Nigeria, emphasis should be given to capital adequacy and bank size. This is because of the

negative but significant effect they have on the financial performance of listed PMBs in Nigeria.

TABLE OF CONTENT

Title page- – – – – – – – – i

Approval page – – – – – – – -ii

Dedication – – – – – – – – -iii

Acknowledgement – – – – – – – -iv

Abstract – – – – – – – – – -v

Table of content – – – – – – – -vi

CHAPTER ONE

INTRODUCTION – – – – – – – -1

1.0 Background of the study – – – – -1

1.1 Statement of the problem – – – – -5

1.2 Purpose of the study – – – – – -6

1.3 Significance of the study – – – – -8

1.4 Research questions – – – – – -9

1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39

Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60

Conclusion – – – – – – – – -61

Recommendations – – – – – – – -62

Suggestions for further research – – – – -64

References – – – – – – – – -65

Appendix I – – – – — – – – -68

Questionnaire. – – – – – – – -69

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