Effect of Retained Earnings, Cash Reserve Ratio and Statutory Reserve on Earnings of Deposit Money Banks in Nigeria

This study seeks to evaluate the effect of retained earnings, cash reserve ratio, and statutory reserve on the earnings of deposit money banks in Nigeria from 2008 to 2019. The specific objectives of the study are to: i. Analyze the effect of retained earnings on earnings per share of deposit money banks in Nigeria. ii Ascertain the effect of cash reserve ratio on earnings per share of deposit money banks in Nigeria iii. Appraise the effect of the statutory reserve on earnings per share of deposit money banks in Nigeria. The study was an ex-post facto research design as historical data were collected from the published annual reports and financial statements of nine (9) deposit money banks listed on the Nigeria Stock Exchange during the period. The major statistical tool of analysis used in the study includes panel data regression analysis, spearman rank-order correlation analysis, t-statistics, and descriptive statistics. Findings from the study suggest that retained earnings and statutory reserve positively and significantly affect earnings per share of deposit money banks while cash reserve ratio positively, but insignificantly affects earnings per share of banks during the period.