ABSTRACT

The study examined the effect of intellectual capital on the profitability of quoted banks in Nigeria. To achieve the objective of this study, ex-post-facto research design was adopted. The collected data was analyzed using simple regression analysis. Based on the analysis and the empirical results the study revealed that Human Capital Efficiency (HCE) has a significant effect on profit margin. The study also, revealed that Structural Capital Efficiency (SCE) has a significant effect on profit margin of banks in Nigeria. The study concludes that Intellectual Capital has a significant effect on profit margin of Banks in Nigeria. The study recommended that management of deposit money banks in Nigeria and the financial service industry should invest in human capital in order to enjoy increase in profit margin. There is also need for deposit money banks in Nigeria to optimally determine the level of intellectual capital so that layoff and underutilization would be highly discouraged. Intellectual Capital should be strengthened by management of deposit money banks in order to enhance improved performance in profit margin. Regulators should endeavour to strengthen the enforcement of policies and measures that will promote enhanced human capital development within the financial sector in Nigeria, as this will in turn enhance their profit margin.