Post Consolidation Performance and Earnings Quality of Listed Banks in Nigeria

Abstract

This study looks at Post consolidation Performance and earnings quality of listed banks in Nigeria from 2008-2012. This exercise was done against the background of speculations that only eight (8) of the existing banks are healthy while six (6) are said to be at the verge of extinction. Both the descriptive and ANOVA statistics methods were used to analyze the data sources from published financial statements of the banks over the period under review. It was discovered that the post consolidation EPS mean of nine (9) of the banks were above average. There is a significant difference between the mean EPS of the top most banks and the rescued ones. The mean EPS of the 2009 rescued banks are negative. They definitely need more than the 2009 bailout to survive. The merger talks among the banks and the signing of memorandum of understanding by then with core investors are therefore seen as the right steps is the right direction.