Corporate Social Responsibility and Financial Performance of First Bank Limited in Nigeria

Abstract

The study focused on the nexus between corporate social responsibility and financial performance of First Bank Limited in Nigeria. The financial performance of commercial banks in Nigeria pertains to the detailed analysis and disclosure of specific factors influencing the after tax profit, the effectiveness of credit risk management practices, and the impact of macroeconomic variables on asset quality, which are crucial for assessing the overall health and stability of the banking sector. The specific objectives were to: ascertain the effect of social expenditure on profit after tax; and determine the effect of environmental expenditure on profit after tax of First Bank Limited. Ex-post facto “design was adopted for this study. Ex-post facto design was used since the researcher relied on historic or secondary accounting data obtained from published annual financial statements of the bank for a period of ten years covering 2013 to 2022. The finding of the study indicates that: there is a positive and significant effect of social expenditure on profit after tax; and there is a positive and significant effect of environmental expenditure on profit after tax of First Bank Limited. The study concluded that there is significant effect of corporate social responsibility and financial performance of First Bank. It was recommended that the bank continues to prioritize and potentially increase investments in social initiatives, ensuring alignment with its corporate objectives, and also expand its environmental sustainability initiatives, leveraging opportunities to invest in eco-friendly technologies and green infrastructure.