The main objective of the study is to examine the effect of Information and communication technology (ICT) investment on the performance of selected Nigerian banks within the period of five years (2013-2017). Specifically, the study investigated the relationship between ICT investment and Return on Asset, examined the relationship that exists between ICT and net profit margin and also justified the relationship between ICT investment and earnings per share within the study period.
All secondary data used were obtained from published annual report of selected commercial banks for the period of 2013 to 2017. Both descriptive and inferential statistical tools were employed in this study. Descriptive tools include mean and standard deviation, while the inferential statistics employed multiple regression model and Pearson pairwise correlation to analyze the secondary data.
Result from the analysis revealed that a significant relationship exists between ICT Investment and return on Asset (ROA), given a P-value of 0.0039, F-value of 45.39, R-Squared of 0.9532 and adjusted R2 of 0.8820. Furthermore, ICT investment exhibit positive effect and relationship with Net profit margin given a P-Value of 0.0092 and F-value of 44.11, R2 of 0.6701 and adjusted R2 of 0.5801 within the study period. Lastly, a significant relationship exists between ICT Investment and Earning per Share (EPS), given a P-value of 0.0001, F-value of 53.10, R-Squared of 0.8071 and adjusted R2 of 0.7582.
It is concluded that Information and communication technology investment had positive effect on the performance of the selected Nigeria deposit money banks. The study recommends that banks should improve more on its information technology so as to enhance its productivity. The use of (ICT) in the banking sector should not only be restricted to the cities alone, rural banking should also be improved upon.