STATISTICAL ANALYSIS OF SAVINGS AND LOAN RATE IN COMMERCIAL BANKS

(A CASE STUDY OF GT BANK, YAKUBU GOWON WAY FROM 2010 TO 2024)

PRESENTED BY

ROSEMARY TIMOTHY

CST/22/ND/0146

AND

IBRAHIM KARIBULLAH

CST/22/ND/2339

FROM

DEPARTMENT OF MATHEMATICS & STATISTICS

COLLEGE OF SCIENCE & TECHNOLOGY
SCHOOL OF APPLIED SCIENCES
KADUNA POLYTECHNIC
KADUNA

MAY, 2025

i
STATISTICAL ANALYSIS OF SAVINGS AND LOAN RATE IN COMMERCIAL BANKS

(A CASE STUDY OF GT BANK, YAKUBU GOWON WAY FROM 2010 TO 2024)

PRESENTED BY

ROSEMARY TIMOTHY

CST/22/ND/0146

AND

IBRAHIM KARIBULLAH

CST/22/ND/2339

A PROJECT WORK SUBMITTED TO THE DEPARTMENT OF MATHEMATICS

AND STATISTICS IN PARTIAL FULFILMENT OF THE AWARD OF NATION
DIPLOMA IN STATISTICS FROM THE DEPARTMENT OF MATHEMATICS AND
STATISTICS SCHOOL OF APPLIED SCIENCES COLLEGE OF SCIENCE AND
TECHNOLOGY KADUNA POLYTECHNIC KADUNA.

DEPARTMENT OF MATHEMATICS & STATISTICS

COLLEGE OF SCIENCE & TECHNOLOGY
SCHOOL OF APPLIED SCIENCES
KADUNA POLYTECHNIC
KADUNA

MAY, 2025

ii
 DECLARATION

We hereby declare that this project work has been written solely by us under the guidance of Mall Abdul

Garba Saddiq of Department of Mathematics and Statistics, Kaduna polytechnic, Kaduna. We have

neither copied directly someone’s work nor has someone else done it for me. Authors whose works

have been referred to, in this Project have been duly acknowledged.

____________________________ ________________
ROSEMARY TIMOTHY DATE
CST/22/ND/0146

____________________________ ________________
IBRAHIM KARIBULLAH DATE
CST/22/ND/2339

iii
 APPROVAL PAGE

This is to certify that this project work is an original work undertaken by Rosemary Timothy with

registration number CST/22/ND/0146 and Ibrahim Karibullah with registration number

CST/22/ND/2339 and has been prepared in accordance with the regulation governing the preparation

and presentation of project write up in the Department of Mathematics and Statistics, Kaduna

Polytechnic, Kaduna.

__________________________ ____________________
MAL ABDUL GARBA SADDIQ DATE
(PROJECT SUPERVISOR)

MR PATRICK IDOWU OWOHUNWA DATE

(HEAD OF DEPARTMENT)

EXTERNAL EXAMINAR DATE

iv
 DEDICATION

This Project work is dedicated to our entire family.

v
 ACKNOWLEDGMENT

Glory be to God Almighty for his guidance, protection and for sparing our life to complete this

work. We also thank our parents and also friends for their effort and assistance towards our

education, we wish to thank and show our appreciation to our honourable supervisor Mal Abdul

Garba Saddiq for his excellent supervision.

We also express our gratitude to the H.O.D Mr Patrick I. Owohunwa, the Section Head Dr.

Abdullahi Yusuf Egwoh and all the Lecturers of the Department. Lastly, we want to appreciate

our course mates for their positive encouragement.

vi
 TABLE OF CONTENTS

DECLARATION ..................................................................................................................... iii

APPROVAL PAGE .................................................................................................................. iv
DEDICATION ........................................................................................................................... v
ACKNOWLEDGMENT........................................................................................................... vi
TABLE OF CONTENTS .........................................................................................................vii
ABSTRACT........................................................................................................................... viii
CHAPTER ONE ................................................................................................................... - 1 -
1.0 INTRODUCTION .......................................................................................................... - 1 -
1.1 Introduction ..................................................................................................................... - 1 -
1.2 Statement of the Problem ................................................................................................ - 2 -
1.3 Aim and Objectives......................................................................................................... - 3 -
1.4 Significance of the Study ................................................................................................ - 4 -
1.5 Scope of the Study .......................................................................................................... - 5 -
CHAPTER TWO .................................................................................................................. - 6 -
2.0 LITERATURE REVIEW ............................................................................................... - 6 -
2.1 Conceptual Review ......................................................................................................... - 6 -
2.2 Theoretical Review ......................................................................................................... - 7 -
2.3 Empirical Review............................................................................................................ - 8 -
CHAPTER THREE .................................................................................................................. - 12 -
3.0 RESEARCH METHODOLOGY .................................................................................................... - 12 -
3.1 Introduction ................................................................................................................... - 12 -
3.2 Research Design............................................................................................................ - 12 -
3.3 Study Area .................................................................................................................... - 12 -
3.4 Data Collection Methods .............................................................................................. - 13 -
3.5 Sampling Techniques .................................................................................................... - 13 -
3.6 Statistical Tools ............................................................................................................. - 13 -
3.7 Data Presentation .......................................................................................................... - 15 -
3.8 Analysis......................................................................................................................... - 16 -
CHAPTER FOUR ..................................................................................................................... - 19 -
4.0 SUMMARY, CONCLUSION AND RECOMMENDATION ............................................................. - 19 -
4.1 Summary ....................................................................................................................... - 19 -
4.2 Conclusion .................................................................................................................... - 19 -
4.3 Recommendation .......................................................................................................... - 20 -
REFERENCES ......................................................................................................................... - 21 -

vii
 ABSTRACT

This project is titled Statistical Analysis on savings and loans at Guaranty Trust Bank (GT
Bank) Kaduna from 2010 to 2024. The objective of the study is to determine the significance of
loan and savings rates, assess the correlation between the two variables, and develop a
regression model to predict savings based on loan rates. Secondary data from GT Bank’s
financial reports were analysed using the Statistical Package for the Social Sciences (SPSS).
Descriptive statistics, correlation analysis, and linear regression were employed to evaluate
the relationship. The results indicate that while there is a moderate positive correlation (r =
0.536) between savings and loans, the relationship is not statistically significant (p = 0.101).
Additionally, the regression analysis revealed that only 28.7% of the variation in savings can
be attributed to loan rates, with the regression model found to be statistically insignificant (p
= 0.397). These findings suggest that GT Bank’s savings mobilization is not solely dependent
on loan disbursement, highlighting the influence of other factors such as interest rates,
economic conditions, and customer preferences. The study therefore recommends, improve
loan accessibility, monitor external Economic factors, and enhance financial education. This
study contributes to the understanding of financial intermediation in Nigerian commercial
banks, offering insights for bank management, policymakers, and future researchers. It
emphasizes the need for diversified strategies to enhance both savings and loan performance,
ensuring sustainable financial growth.

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 CHAPTER ONE

1.0 INTRODUCTION

1.1 Introduction

Commercial banks play a pivotal role in the economic growth of any nation by mobilizing

savings and providing loans that drive investment and consumption. Savings represent a

crucial source of funds that banks utilize to extend credit to individuals, businesses, and

government institutions, thereby promoting economic development (Mishkin, 2019). The

relationship between savings and loans is fundamental to the financial intermediation

process, as banks rely on deposits to meet the borrowing needs of their customers.

Understanding this relationship is essential for optimizing loan portfolios, maintaining

liquidity, and ensuring profitability.

In Nigeria, commercial banks are vital players in the financial sector, with institutions

such as Guaranty Trust Bank (GT Bank) leading the charge in financial intermediation.

Established in 1990, GT Bank has grown into one of the country’s most reputable

financial institutions, known for its innovative products, robust customer service, and

sound financial management (GTBank, 2023). With a strong presence in Kaduna, GT

Bank serves a diverse clientele, ranging from individuals and small businesses to large

corporations. The bank’s ability to effectively mobilize savings and extend credit directly

impacts its financial performance and overall contribution to the local economy.

Despite the significance of savings in facilitating lending, the extent to which savings

influence loan disbursement remains a subject of ongoing debate. While some studies

suggest a strong correlation between savings and loans, others argue that additional

factors, such as interest rates, government regulations, and economic conditions, also

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 play a critical role (Odhiambo, 2020; Nwakoby & Ijeoma, 2020). Understanding the

specific relationship between savings and loans at GT Bank Kaduna is essential, as it

provides insights into the bank’s lending behavior and informs strategic decision-making.

This study aims to analyze the correlation and regression relationship between savings

and loans in GT Bank Kaduna from 2010 to 2024. By examining historical data, the

research seeks to determine whether changes in savings levels significantly impact the

volume of loans disbursed. The analysis will be conducted using the Statistical Package

for the Social Sciences (SPSS), a robust software tool widely used for statistical analysis.

SPSS will facilitate the computation of correlation coefficients and regression models,

ensuring accurate and reliable results (Pallant, 2020). The findings of this study are

expected to provide valuable insights for GT Bank’s management, policymakers, and

researchers, contributing to the broader literature on financial intermediation in Nigeria.

1.2 Statement of the Problem

The success of commercial banks largely depends on their ability to mobilize savings

and provide loans to individuals, businesses, and organizations. Savings act as the

primary source of funds for lending, while loans generate revenue through interest, thus

contributing to a bank's profitability and sustainability (Mishkin, 2019). However, the

extent to which savings influence the volume of loans disbursed remains a subject of

debate. A clear understanding of this relationship is essential for optimizing financial

performance, maintaining liquidity, and supporting economic growth.

In Nigeria, commercial banks, including Guaranty Trust Bank (GT Bank), operate in an

environment characterized by fluctuating savings rates, evolving regulatory frameworks,

and varying levels of credit demand. Despite the crucial role of savings in facilitating

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 lending, it is unclear whether changes in savings directly impact the volume of loans

granted by GT Bank Kaduna. For instance, periods of high savings do not always

translate into increased loan disbursements, raising questions about the factors

influencing the bank's lending decisions (Nwakoby & Ijeoma, 2020). Additionally,

external factors such as inflation, interest rates, and economic conditions may also affect

the correlation between savings and loans, complicating the relationship further.

Moreover, there is limited empirical research specifically examining the relationship

between savings and loans within the context of GT Bank Kaduna. Existing studies on

financial intermediation in Nigeria have largely focused on the banking sector as a whole,

without considering individual banks or regional differences. This gap in the literature

underscores the need for a focused investigation that explores whether variations in

savings levels significantly influence the volume of loans disbursed by GT Bank Kaduna.

This study seeks to address these gaps by conducting a comprehensive analysis of the

correlation and regression relationship between savings and loans at GT Bank Kaduna

from 2010 to 2024. By utilizing the Statistical Package for the Social Sciences (SPSS)

for data analysis, the research aims to provide empirical evidence on the strength and

direction of the relationship between savings and loans, offering valuable insights for the

bank’s management, policymakers, and other stakeholders. The findings of this study

will not only enhance the understanding of GT Bank’s financial intermediation process

but also contribute to the broader literature on banking performance in Nigeria.

1.3 Aim and Objectives

The aim of this seminar is to examine the relationship exhibited between savings and

loans among commercial banks. This will be achieved through;

i. To determine and test the significance loan rates and savings rate from GT bank

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 ii. To determine the relationship between savings and loan rate in GT bank.

iii. To build a simple linear regression model to predict savings with loan.

1.4 Significance of the Study

This study is significant as it provides insights into the relationship between savings and

loans within Guaranty Trust Bank (GT Bank) Kaduna, offering practical and theoretical

contributions to various stakeholders:

i. For GT Bank Management: Understanding the correlation between savings and loans

will help the bank optimize its financial management practices, ensuring a balance

between liquidity and profitability. This insight will enable the bank to make informed

decisions regarding credit allocation, interest rates, and deposit mobilization strategies.

ii. For Policymakers and Regulators: The study's findings will assist regulatory bodies

such as the Central Bank of Nigeria (CBN) in formulating policies that promote

financial stability and enhance the efficiency of the banking sector. By understanding

the factors that influence lending, policymakers can design measures that encourage

savings and facilitate credit accessibility.

iii. For Investors and Customers: The research will provide investors with a clearer

understanding of GT Bank's financial performance and lending capacity, helping them

make informed investment decisions. Additionally, customers will benefit from

improved banking services and competitive loan products resulting from better

financial management.

iv. For Researchers and Academics: This study contributes to the existing body of

knowledge on financial intermediation, specifically in the Nigerian context. By

examining the relationship between savings and loans at GT Bank Kaduna, the

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 research adds empirical evidence to the literature, serving as a reference for future

studies on banking performance and financial relationships.

v. For the Economy: Since banks play a crucial role in economic growth by channeling

savings into productive investments, understanding the dynamics of savings and loans

can help improve credit availability, stimulate entrepreneurship, and drive economic

development in Kaduna and beyond.

1.5 Scope of the Study

This study focuses on the relationship between savings and loans in Guaranty Trust Bank

(GT Bank) Kaduna, covering the period from 2010 to 2024. The research is limited to

GT Bank's Kaduna branch to provide a detailed analysis within a specific regional

context, ensuring the findings are relevant to the bank's operations in the area.

The study will examine annual data on savings and loans, sourced from GT Bank’s

financial reports and other relevant documents. The analysis will be conducted using the

Statistical Package for the Social Sciences (SPSS) to determine the correlation and

regression relationship between savings and loans. While the study primarily focuses on

GT Bank Kaduna, the findings may offer insights applicable to other branches of GT

Bank and the broader Nigerian banking sector.

However, the study is limited by factors such as data availability, confidentiality

restrictions, and the potential influence of external economic variables that may affect

the relationship between savings and loans. Despite these limitations, the research aims

to provide a comprehensive understanding of the financial intermediation process at GT

Bank Kaduna, contributing to both practical decision-making and academic knowledge.

-5-
 CHAPTER TWO

2.0 LITERATURE REVIEW

2.1 Conceptual Review

2.1.1 Savings

Savings refer to the portion of income not consumed and set aside for future use. In the

context of commercial banks, savings are deposits made by individuals and businesses,

which banks use to provide loans and generate profit through interest (Mishkin, 2019).

These deposits are crucial for the bank's liquidity and ability to extend credit, directly

impacting its ability to offer loans.

2.1.2 Loans

Loans are financial assets provided by banks to individuals, businesses, and

governments, typically with the expectation of repayment with interest. They represent

the primary source of income for banks, as the interest charged constitutes a significant

portion of their revenue (Odhiambo, 2020). The availability of loans is heavily dependent

on the volume of savings collected by the bank.

2.1.3 Financial Intermediation

Financial intermediation refers to the process through which banks and other financial

institutions mobilize savings from depositors and channel these funds into loans for

borrowers. This process is essential for economic growth as it provides capital for

investment and consumption, bridging the gap between savers and borrowers (Nwakoby

& Ijeoma, 2020).

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2.1.4 Correlation and Regression Analysis

Correlation analysis measures the strength and direction of the relationship between two

variables, while regression analysis determines the extent to which one variable

influences another. In this study, correlation analysis will assess the relationship between

savings and loans at GT Bank Kaduna, while regression analysis will evaluate the

predictive impact of savings on loan disbursement using SPSS software (Pallant, 2020).

2.2 Theoretical Review

2.2.1 Financial Intermediation Theory

This theory, proposed by Gurley and Shaw (2020), posits that financial intermediaries

such as banks play a crucial role in bridging the gap between savers and borrowers. By

pooling savings from multiple depositors, banks can provide loans that support

investment and consumption, thereby driving economic growth.

2.2.2 Loanable Funds Theory

Developed by Knut Wicksell, the Loanable Funds Theory suggests that the supply of

loans depends on the availability of savings, while the demand for loans is influenced by

interest rates. According to this theory, an increase in savings leads to a higher supply of

loanable funds, reducing interest rates and encouraging borrowing (Mishkin, 2019).

2.2.3 Keynesian Theory of Savings

John Maynard Keynes argued that savings and investment are influenced by income

levels and interest rates. Higher income levels lead to increased savings, which banks can

use to provide loans. However, Keynes also noted that excessive savings without

corresponding investment can slow economic growth (Keynes, 2016).

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2.2.4 Permanent Income Hypothesis

Friedman (2017) proposed that individuals base their consumption and saving decisions

on their expected long-term income rather than their current income. This hypothesis

implies that temporary changes in income do not significantly affect savings behavior,

which is crucial for understanding long-term bank deposits.

2.2.5 Life Cycle Hypothesis

Modigliani and Brumberg (2014) suggested that individuals save during their working

years to support consumption during retirement. This theory explains the accumulation

of savings over time and its impact on the availability of loanable funds.

2.2.6 Credit Creation Theory of Banking

Schumpeter (2021) emphasized the role of banks in creating credit beyond the deposits

they hold. According to this theory, banks play an active role in economic development

by financing innovative business ventures, thereby stimulating growth.

2.3 Empirical Review

Odhiambo (2020), in his study titled Interest Rate Reforms, Financial Deepening, and

Economic Growth in Kenya, examined the relationship between interest rates, savings,

and loans. Using time series data and regression analysis, he found that financial

deepening positively influenced economic growth by increasing the availability of credit.

His study highlighted that higher savings levels lead to more loanable funds, supporting

both individual and business investments.

Nwakoby and Ijeoma (2020) conducted a study titled The Impact of Commercial Banks’

Credit on Nigeria’s Economic Growth. The study aimed to assess the effect of bank credit

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on economic performance. Using secondary data and regression analysis, they concluded

that an increase in bank credit significantly contributed to economic growth, highlighting

the importance of efficient financial intermediation. Their study emphasized that savings

mobilized by banks directly influence their ability to provide loans, thus promoting

economic activities.

Adebayo et al. (2021), in their study Savings, Loans, and Economic Growth in Nigeria:

An Empirical Investigation, analyzed the correlation between savings and loans using

data from Nigerian commercial banks. The study employed Pearson correlation and

linear regression techniques, revealing a positive and significant relationship between

savings and loans. Their findings suggested that higher savings levels lead to increased

loan disbursements, supporting the notion that banks rely on deposits to finance lending

activities.

Aliyu (2022) examined The Relationship Between Deposit Mobilization and Loan

Disbursement in Nigerian Banks: A Case Study of GT Bank. The study used annual data

from 2010 to 2020 and employed SPSS for correlation and regression analysis. The

findings indicated a strong positive correlation between deposit mobilization and loan

disbursement, emphasizing the critical role of savings in supporting the bank’s lending

activities. Aliyu's study further revealed that efficient deposit mobilization enhances GT

Bank's capacity to meet the credit needs of its customers, thus promoting business growth

and economic development.

Additionally, Okafor et al. (2023), in their research titled Determinants of Loan

Performance in Nigerian Commercial Banks, investigated the factors influencing loan

performance, including the availability of savings. Using multiple regression analysis,

they found that the volume of savings significantly affects the volume of loans disbursed,

-9-
reinforcing the idea that banks depend on customer deposits to finance their lending

operations.

Adeoye and Elegbede (2018) examined The Role of Commercial Banks in the Economic

Development of Nigeria. Using time series data from 1990 to 2016 and regression

analysis, they found that savings mobilization positively influenced the availability of

credit, which in turn supported investment and consumption.

Eze and Okonkwo (2019) conducted a study titled Savings and Credit Accessibility

Among Small and Medium Enterprises (SMEs) in Nigeria. Using survey data and

correlation analysis, they found a significant positive relationship between business

savings and credit accessibility, emphasizing the importance of savings in securing loans.

Bello and Yusuf (2020) analyzed The Effect of Interest Rates on Savings and Loans in

Nigerian Commercial Banks. Their study employed multiple regression analysis and

concluded that while interest rates influence both savings and loans, the availability of

savings is a more critical determinant of loan disbursement.

Chukwu et al. (2021) investigated The Impact of Savings and Loans on Household

Welfare in Nigeria. Using panel data from Nigerian households and regression analysis,

they found that increased savings significantly improved access to loans, which in turn

enhanced household welfare and consumption.

Fatima and Ibrahim (2022) explored The Relationship Between Bank Deposits and Credit

Allocation in Nigeria. Their findings showed a strong positive correlation between the

volume of bank deposits and the amount of credit allocated, underscoring the importance

of deposit mobilization in supporting lending activities.

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In summary, the conceptual review provided definitions of key terms, the theoretical

review discussed relevant financial theories, and the empirical review highlighted studies

that support the relationship between savings and loans, with specific reference to

Nigerian banks and GT Bank. The next chapter will present the research methodology

used to analyze the correlation and regression relationship between savings and loans at

GT Bank Kaduna from 2010 to 2024.

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 CHAPTER THREE

3.0 RESEARCH METHODOLOGY

3.1 Introduction

This chapter outlines the research methodology employed to investigate the correlation

and regression relationship between savings and loans at Guaranty Trust Bank (GT Bank)

Kaduna from 2010 to 2024. The chapter details the research design, study area, data

collection methods, sampling techniques, data analysis procedures, and ethical

considerations.

3.2 Research Design

The study adopts a quantitative research design, utilizing a descriptive, students’ t-test,

correlational and regression approach to explore and examine the relationship between

savings and loans. Conversantly, inferential statistics was conducted to justify the

significance of the claims about savings and loans. This design is appropriate as it allows

for the statistical analysis of numerical data to determine the strength and direction of the

relationship between the variables (Creswell & Creswell, 2018).

3.3 Study Area

The research focuses on GT Bank Kaduna, located in Kaduna State, Nigeria. GT Bank

is a prominent commercial bank with a significant presence in Kaduna, serving a diverse

clientele that includes individuals, businesses, NGOs, marketers and traders, and both

private and governmental governmental organizations.

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3.4 Data Collection Methods

The study relies on secondary data obtained from GT Bank's annual financial reports

covering the period from 2010 to 2024. These reports provide comprehensive

information on the bank's savings deposits and loan disbursements, which are essential

for the analysis.

3.5 Sampling Techniques

Given the focus on a single branch of GT Bank, the study employs a purposive sampling

technique. This approach is suitable as it allows for the deliberate selection of GT Bank

Kaduna based on its relevance to the research objectives (Etikan, Musa, & Alkassim,

2016).

3.6 Statistical Tools

The collected data will be analyzed using the Statistical Package for the Social Sciences

(SPSS) software. The analysis will involve:

Descriptive statistics
This is a statistic summary that quantitatively describes or summarizes features from a
collection of information, descriptive statistics is the use of the summary statistic to analyze the
information or data by providing a vital and useful point estimate of the information. The
statistic include; mean, median and mode for measures of central tendency, range, standard
deviation, for measure of variation and skewness and kurtosis for measure of dispassion. Such
as;
n n n

 xi  f i xi  f (x − x )
i i
2

x= i =1
= i =1
n
s2 = i =1
n

f f
n
i i
i =1 and i =1

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 Correlation Analysis:

The sample correlation coefficient R is a measure of the strength of the association

between the independent (explanatory) variable and the one dependent (prediction)

variable. In a trivariate distribution in which each of the variable Y and X has n

observations the correlation coefficient of Y on X usually denoted by 𝑅𝑦𝑥 is the simple

correlation coefficient between Y and X. The strength of the association is measured

by the sample correlation coefficient R. The correlation coefficients can be any value

from −1 ≤ 𝑟 ≤ +1.

The closer R is to one, the stronger the linear association is, for R equals zero, there is

no linear association between the dependent variable and the independent variable. The

formula for correlation coefficients between a dependent variable Y and X is the

follows.

And the pairwise product moment correlation coefficients using the following formula.

n n n
n X iYi −  X i  Yi
rx. y = i =1 i =1 i =1

 n 2  n 
2
  n 2  n 2 
 n X i −   X i    n Yi −   Yi  
 i =1  i =1    i =1  i =1  
 

Regression Analysis:

In order to make good use of regression analysis, you must have a basic understanding

of the regression model.

The General Regression model is: 𝑦

̂ = 𝛼 + 𝛽1 𝑥1𝑖 + ⋯ + 𝛽𝑝 𝑥𝑝𝑖

This expression represents the relationship between the dependent variable and the

independent variables as a weighted average in which the regression coefficients (β’s)

are the weights. Unlike the usual weights in a weighted average, it is possible for the

regression coefficients to be negative. A fundamental assumption in this model is that

- 14 -
 the effect of each independent variable is additive. Now, no one really believes that the

true relationship is actually additive. Rather, they believe that this model is a reasonable

first-approximation to the true model. To add validity to this approximation, you might

consider this additive model to be a Taylor-series expansion of the true model.

Assumptions of regression analysis, including linearity, independence,

homoscedasticity, and normality of residuals, will be tested to validate the model (Field,

2018).

3.7 Data Presentation

This secondary data used for this seminar is as represented in table 1 below;

Table 1: Savings and loans Record Yearly

Year Savings (Million) Loan/ Debit (Million)
2010 ₦ 30.50 ₦ 31.65
2011 ₦ 30.50 ₦ 32.47
2012 ₦ 32.63 ₦ 28.68
2013 ₦ 32.00 ₦ 32.32
2014 ₦ 32.71 ₦ 28.68
2015 ₦ 32.00 ₦ 31.85
2016 ₦ 31.13 ₦ 31.50
2017 ₦ 32.14 ₦ 32.22
2018 ₦ 26.53 ₦ 26.50
2019 ₦ 31.25 ₦ 26.54
2020 ₦ 30.12 ₦ 26.50
2021 ₦ 30.14 ₦ 27.22
2022 ₦ 30.24 ₦ 27.00
2023 ₦ 32.12 ₦ 26.56
2024 ₦ 33.10 ₦ 26.55
Source: GT Bank, Yakubu Gowon Way, Kaduna.

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3.8 Analysis

Objective One: To determine and test the significance of loan and savings rates from GT bank

Table 1: Descriptive Analysis

Paired Samples Statistics
Mean N Std. Deviation Std. Error Mean
Savings 31.1407 15 1.62349 .41918
Loan/ Debit 29.0827 15 2.57190 .66406
Interpretation: table 1 show the mean, N, standard deviation and standard error for mean. The

average saving over the years is 31.1407million naira with a standard deviation of 1.6249

million naira deviation annually. The average loan/debit over the years is 29.0827million naira

with a standard deviation of 2.57190 million naira deviation annually. Comparing both means

value, it is justifiable that there has been higher savings over the ears than loan/debit.

Table 2: Paired sample test for significant difference

Paired Samples Test
Paired Differences
95% Confidence
Interval of the
Std. Std. Error Difference Sig. (2-
Mean Deviation Mean Lower Upper t df tailed)
Savings - Loan/ Debit 2.05800 2.69807 .69664 .56386 3.55214 2.954 14 .010
Interpretation: the average difference between savings rate and loan/debit at GT bank is

2.058 million naira annually, with an annual deviation of 2.6981million naira annually. The

test for significance using paired t-test with a value 2.954 and p-value (0.01) which is less

than 0.05, we say that there is significant difference in the amount of saving and loan/debit

rate.

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Objective Two: To determine the relationship between savings and loan rate in GT bank.

Table 3: Correlation analysis

Correlations
Loan/ Debit
Savings (Billion) (Billion)
Savings (Billion) Pearson Correlation 1 .536
Sig. (2-tailed) .101
N 15 15
Loan/ Debit (Billion) Pearson Correlation .536 1
Sig. (2-tailed) .101
N 15 15
Interpretation: correlation coefficient of 0.536 is a positive relationship between savings rate

and loan rate in the bank. This relationship is a moderate relation with p-value (0.101) which

practically greater than 0.05, implying that the relationship is not significant.

Objective Three: To build a simple linear regression model to predict savings with loan.

Table 4: regression model summary

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
1 .536a .287 -.017 1.63719
a. Predictors: (Constant), Loan/ Debit (Billion)
Interpretation: Correlation coefficient of determination (R2 = 0.287 which implies that

28.7% of variation in saving can only be attributed to loan/debit rate. I e. the amount of loan

the bank give out does not significantly determine the amount of savings they got.

Hypothesis

H0: the regression models is not significant

H1: the regression model is significant.

Level of significance

0.05

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Test statistics
𝑀𝑆𝑟𝑒𝑔
𝐹 = 𝑀𝑆𝑒𝑟𝑟𝑜𝑟

Decision criteria

Reject H0 if p-value is less than 0.0 otherwise do not reject.

Computations

Table 5: Analysis of variance table for regression analysis

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.055 1 2.055 .767 .397b
Residual 34.845 13 2.680
Total 36.900 14
a. Dependent Variable: Savings (Billion)
b. Predictors: (Constant), Loan/ Debit (Billion)

Conclusion
Since p-value = .397 greater than 0.05 level o significance, we therefor reject H0 and

conclude that the regression model is not statistically significant. Hence, we cant fit a

regression model.

Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 26.808 4.966 5.398 .000
Loan/ Debit (Billion) .149 .170 .236 .876 .397
a. Dependent Variable: Savings (Billion)

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 CHAPTER FOUR

4.0 SUMMARY, CONCLUSION AND RECOMMENDATION

4.1 Summary

This study investigates the relationship between savings and loans at Guaranty Trust

Bank (GT Bank) Kaduna from 2010 to 2024. Using secondary data from GT Bank’s

financial reports and analyzing it through SPSS, the research employs descriptive

statistics, correlation analysis, and linear regression to assess this financial relationship.

The findings reveal that while there is a moderate positive correlation (r = 0.536) between

savings and loans, the relationship is not statistically significant (p = 0.101).

Additionally, regression analysis indicates that only 28.7% of the variation in savings

can be attributed to loan rates, and the regression model is not statistically significant (p

= 0.397).

4.2 Conclusion

The study concludes that although GT Bank Kaduna’s savings and loan rates exhibit a

moderate positive relationship, this relationship is not significant enough to predict

savings based on loan rates. The bank’s ability to mobilize savings is not solely

dependent on the volume of loans disbursed, suggesting that other factors, such as interest

rates, economic conditions, and customer preferences, may play a more substantial role.

Consequently, the regression model is unsuitable for predicting savings using loan rates,

highlighting the need for a broader analysis of additional factors influencing savings.

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4.3 Recommendation

The following recommendation are made for this study based on the reviews and findings

from the analysis.

1. Diversify Savings Mobilization Strategies: GT Bank should focus on enhancing its

savings mobilization through attractive interest rates, innovative savings products, and

improved customer service.

2. Improve Loan Accessibility: While loan rates may not directly influence savings,

ensuring competitive loan terms can attract more customers, potentially increasing

deposit volumes.

3. Monitor External Economic Factors: The bank should continuously monitor

macroeconomic indicators, such as inflation and interest rates, which can indirectly

impact both savings and loans.

4. Further Research: Future studies should explore additional variables, such as interest

rates, customer demographics, and income levels, to provide a more comprehensive

understanding of the factors influencing savings and loans at GT Bank Kaduna.

5. Enhance Financial Education: Educating customers on the benefits of saving and the

available loan options can help increase both deposits and loan uptake, strengthening

the bank’s financial performance.

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