Retained Earnings on the Growth and Financial Performance of Zenith Bank PLC (2013 2023): A Comparative Analysis with Nigerian Banks
Year: 2025
Type: article
Abstract: This study examines the impact of retained earnings on the financial performance and growth of Nigerian banks, with Zenith Bank Plc serving as a primary case study. Spanning the period from 2021 to 2023. Utilizing a quantitative approach, the study analyzes data on retained earnings, capital employed, and turnover for Zenith Bank and compares these findings with those of other major Nigerian banks, including First Bank, GTBank, Fidelity Bank, and Unity Bank. The findings revealed a consistent upward trend in retained earnings for Zenith Bank, from ₦240 billion in 2021 to ₦275 billion in 2023. Hypotheses testing was used to evaluate the relationship between retained earnings and net assets, gross earnings, and investor patronage. Results demonstrate a positive correlation between increased retained earnings and growth in net assets, gross earnings, and investor confidence, supporting the notion that retained earnings are a critical driver of long-term growth and financial stability. The study recommends that banks should focus on prudent management of retained earnings to bolster financial performance and secure competitive advantages in the banking sector
DOI: 10.4314/jpds.v18i1.3
Authors: Emughedi Oghu, Chidinma Lawal, Yalouli Tarek
Institution: Kogi State College of Education, Ankpa
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4409412579