ABSTRACT

This study examined the effect of merger and acquisition on financial performance of banks in Nigeria. To achieve the objective of the study, Ex post facto Research design was adopted. The study revealed that board size and bank market shares have a significant relationship with return on equity while bank financial characteristic has no significant relationship with return on equity. The study also revealed that bank market share has a significant relationship with return on assets while board size and bank financial characteristic has no significant relationship with

return on assets. Finally, the study revealed that board size has a significant relationship with profit margin while bank financial characteristic and bank market share has no significant relationship with profit margin. The study concludes that banking sector is becoming competitive and market forces are creating an atmosphere where many banks simply cannot afford to have weak balance sheets and inadequate corporate governance. The study recommended that bank consolidation in the financial market must be market driven to allow for efficient process.