Analysis Of Bonus On Share As A Determinant For Portfolio Selection Of Bank Shares [A Case Studies Of Three Most Viable Bank In Nigeria Namely Zenith Bank Plc, Guaranty Trust Bank Plc And First Bank Nigeria Plc.]

Adeoye Akeem .O, Emiola, Olawale. K. Steve


This research analysis of bonus on share as a determinant for portfolio selection of bank , one of the problems of investors is where to invest and how much to invest to maximize expected annual returns. Portfolio is a collection or an aggregation of investments tools such as stocks, shares, mutual funds, bonds, cash to mention a few. Data were collected from research work of Annual Report, Vetiva Research for the three banks, Zenith Bank, GTBank and First Bank share. The data was formulated as a quadratic programming problem and we create the lagrangean expression, LINDO software was used to analyse the data. Expected returns of Bonus on share capital for each bank are 35%, 28.64%, 25.84% for Zenith Bank, GTBank and First Bank respectively. The increment that yields the minimum variance with mixed investment opportunity is 30%. Hence the optimum solution to the model is b1 = 30.15%, b2 = 50.94% and b3 = 18.91%Where b1 represent Zenith bank expected investment of the share holder, b2 represent GTBANK bank expected investment of the share holder and b3 represent First bank expected investment of the share holder. Based on the analysis on Zenith bank, GTBANK, First bank, any interested investor can decide to invest 30.15% of available fund on Zenith bank share, 50.94% on GTBANK share and 18.91% on First bank share. This will guarantee 30% increase of bonus payment on share of the shareholder in the nearest future.


Keywords: Bonus, shares ,invest, funds, bank

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