IMPACT OF CORPORATE SOCIAL RESPONSIBILITY (CSR) ON PROFITABILITY IN NIGERIA’S BANKING INDUSTRY

The study examined the effect of corporate social responsibility on the profitability of Nigerian banking industry. Specifically, the study determines the effect of community responsibility disclosure on the profitability of Nigerian banking industry, investigate the effect of health and safety disclosure on the profitability of Nigerian banking industry and assess the effect of educational initiative disclosure on the profitability of Nigerian banking industry. The study employed an ex post facto research design. Data used was collected from secondary sources through the annual report of selected firms for the period of 2013 to 2023. The population of this study consist o of 12 deposit money banks listed on Nigerian Exchange Group as at December 2024. A total number of all the twelve (12) deposit money banks listed on the Nigerian Exchange Group was considered as the sample size. Owing to availability of data, a purposive sampling technique was adopted to select all the twelve (12) deposit money banks. The study adopted multiple regression analysis. The findings show that community responsibility disclosure (CRD) has a negative but significant effect on profitability of Nigerian banking industry (coefficient =-0.6687, p- value = 0.0458). Health and safety disclosure (HSD) has a positive and significant effect on profitability of Nigerian banking industry (coefficient =1.7351, p- value =0.0005). Educational initiative disclosure (EID) has a positive and significant effect on profitability of Nigerian banking industry (coefficient =1.0103, p- value =0.0409). It was therefore recommended that management of Nigerian banks should prioritize CSR initiatives that directly enhance operational efficiency and customer relationships, such as health and safety programs and educational initiatives, since these have proven to improve profitability. Banks should balance such projects with cost-benefit considerations. Community CSR should be strategically targeted to areas that align with long-term business interests and provide measurable returns over time. Banks should increase their engagement in educational initiatives such as financial literacy campaigns, scholarships, and staff training, as these not only enhance societal development but also generate loyalty and long-term profit abilities