IMPACT OF FINANCIAL INFORMATION ON PROFITABILITY IN BANKING SECTOR

This project focused on the Impact Of Financial Information On Profitability In Banking Sector In with particular reference to Nigeria (A Case Study of G.T Bank Plc Birnin Kebbi Branch),. The study aims at pointing out to the investors that the financial statements have great impact on investment decision. The study also aimed to examine the relationship between financial statement in deposit money bank. However, various past literatures on the topic under study. Data was collected through the use of questionnaire then later was analyzed in chapter four using percentage and tables. Findings revealed that financial statement plays a significant role in decision making of Nigerian Banks. It is however recommended that financial statement should be prepared using such a language and terms a layman can understand because the technical terms do not mean much to the investors. There should be prompt provision of the` financial statement at the end of financial year and the profit after tax should be reported precisely and correctly with actual figures and avoid use of percentage to enable any layman make good investment decision. Investment decision should not be a vacuum or rule of thumb rather, the financial statement should be used as the bedrock and the volume of liabilities acquired by financial institutions should be minimal and invested wisely to avoid its negative effects on the profit of the bank which will discourage prospective investors because no investment decision on a financial institution should be taken without the consideration of a company’s financial statement. Finally, Banks and Companies should carryout educational enlightenment programme from time to time to enable investors understand the financial report fully. Investors should attach much importance to the annual report so that banks and companies can really know the extent of their responsibility in preparing the financial statement.