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.
