THE IMPACT OF SUSTAINABILITY REPORTING ON FINANCIAL PERFORMANCE OF GUARANTY TRUST BANK IN IKEJI-ARAKEJI, OSUN STATE, NIGERIA

ABSTRACT This study investigates the impact of sustainability reporting on the financial performance of Guaranty Trust Bank in Ikeji-Arakeji, Osun State, Nigeria, over the period 2019–2024. The research focuses on the economic, social, environmental, and governance dimensions of sustainability reporting and their influence on financial metrics, specifically Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). Utilizing secondary data sourced from Guaranty Trust Bank’s annual reports, the Nigeria Stock Exchange, and other relevant databases, the study employs descriptive statistics and Ordinary Least Squares (OLS) regression techniques for analysis. Findings reveal that social sustainability reporting (SSR) and environmental sustainability reporting (ESR) have significant positive effects on ROA, with coefficients of 0.3709 (p=0.008) and 0.3418 (p=0.003), respectively. Economic sustainability reporting (ECSR) shows a positive but marginally significant effect on ROE (coefficient=0.2112, p=0.061). Conversely, governance sustainability reporting (GSR) exhibits a significant negative effect on NPM (coefficient=-0.3498, p=0.019). These results align with stakeholder, legitimacy, institutional, and signaling theories, underscoring the strategic importance of sustainability reporting in enhancing financial performance. The study recommends that Nigerian deposit money banks adopt standardized sustainability reporting frameworks, integrate sustainability into core strategies, and pursue enabling legislation to strengthen ESG practices. Further research is suggested to explore the role of technology in sustainability reporting and the individual effects of ESG components on financial outcomes.