Abstract:
The study “is on the effect of Benchmarking on the Profitability of banks, a case study of First Bank of Nigeria Plc and Fidelity Bank Plc, Lagos area, investigated banks’ constant search of ways and means to improve their operational performance and profitability. It stated major problems of benchmarking in the banking industry to include, inability of banks to device a formidable synergy to achieving landmark success in benchmarking process for profit objectives and inability of benchmarking to arouse and sustain growth . The study’s main objectives include, inter alia, to x-ray how banks use formal process of benchmarking to improve performance, to highlight some of the challenges associated with benchmarking , to examine the performance of benchmarking on corporate performance of banks and to examine the objectives of benchmarking among banks. The researcher prepared a questionnaire to aid him collate primary data from respondents. Books, journals, periodicals and internet, were some secondary sources of data. However, the researcher, in his findings, observed that most banks use formal process of benchmarking to improve performance, that effective implementation of benchmarking process positively effects profitability and that increase in profit performance of banks enhances their benchmarking process. From the above findings, the researcher concluded thus; that favourable attributes of benchmarking on banks profitability is supposed to be sustained by readdressing the unfavourable in the achievement of other major objectives of banks and that the issue of benchmarking and banks’ profitability are interrelated strategies sustainable development and growth of banking industry in Nigeria. He however, recommended thus; banks using formal process of benchmarking to improve performance should be supported with organizational resources for the realization of predetermined corporate goals.
