The Impact of Income Diversification on Bank Performance: A Case Study of Zenith Bank, Cal Bank and Unibank

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The general objective of this study is to investigate the impact of income source diversification on bank performance. Pooled data of Three Universal banks was employed in this study using a linear regression analysis. The study revealed that bank income sources are diversified significantly in the Ghanaian banking industry and that both interest and non-interest activities significantly impacts positively on bank performance while bank growth in the number of branches significantly impacts negatively on bank performance. This lead to the acceptance of both H1 which hypothesized that commercial banks in Ghana are diversified in source of income and H2 which postulates that income source diversification improves financial performance of commercial banks.
A Thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology, Kumasi in partial fulfillment of the requirements for the degree of Commonwealth Executive Masters of Business Administration,