Retained Earnings on the Growth and Financial Performance of Zenith Bank PLC (2013 2023): A Comparative Analysis with Nigerian Banks

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