Financial Statements and Investment Decisions of Deposits Money Banks in Nigeria. (a Case Study of Wema Bank in Akure)

This study explored the critical relationship between financial statements and investment decisions within Nigeria’s banking sector, with a specific focus on Wema Bank in Akure. The research investigated how the financial statement influences investor confidence and decision-making. The objective of the of the study were to analyze the relationship between financial statement quality and the performance of deposit money banks, to assess how profitability influences investor confidence and decision-making in Nigerian banks and to identify how liquidity attracts potential investors to deposit money banks in Nigeria. Primary and secondary data was used primary data was collected from both investors and bank staff through questionnaires and interviews it was revealed that a large majority of respondents acknowledged that financial statements are fundamental to their investment decisions. Also revealing over 90% of participant significantly get influenced by the profitability and liquidity of the bank and for the secondary data, annual report of the bank was used. The Findings of secondary data reveals from 2020 to 2024 that the bank experienced high growth in profitability and good reliance in debt financing which significantly influence investment decisions. The study concluded that high-quality, understandable, and timely financial reports play a pivotal role in enhancing investor trust and guiding effective investment strategies. The study recommends that effort must be made to strengthen financial reporting standards and improve investors education in Nigeria.