ASSESSMENT OF FINANCIAL RATIOS AND THE PERFORMANCE OF NIGERIAN BANKS (CASE STUDY OF FIRST BANK PLC)"

This study aims to assess the financial performance of Nigerian banks, with a specific focus on First Bank of Nigeria, over a ten-year period from 2014 to Q1 2024. The analysis employs key financial ratios, including Return on Assets (ROA), Return on Equity (ROE), Net Profit Margin, and Gross Profit Margin, to evaluate the bank’s profitability, efficiency, and overall financial health. The findings reveal a general upward trend in ROA and ROE, indicating improved efficiency in asset utilization and strong returns on shareholders’ equity. The Net Profit Margin and Gross Profit Margin also show positive trends, reflecting effective cost management and revenue generation strategies. Despite minor fluctuations in certain years, the overall financial performance of First Bank of Nigeria demonstrates robustness and potential for sustained growth. The study contributes to the understanding of financial performance assessment in the Nigerian banking sector and provides valuable insights into the strategic management practices of First Bank of Nigeria. Recommendations for enhancing asset utilization, strengthening equity management, optimizing cost control, and expanding revenue streams are proposed. Additionally, suggestions for further research include comparative analysis across multiple banks, the impact of macroeconomic factors, the relationship between customer satisfaction and financial performance, and the influence of technological advancements on banking performance. This comprehensive analysis underscores the importance of financial ratio analysis in evaluating the health and performance of banks, offering a framework for stakeholders to make informed decisions.