Sustainability Accounting and Financial Performance of Commercial Banks in Cameroon

Abstract

This study empirically examined the effect of sustainability accounting on the financial performance of commercial banks in Cameroon from 2018 to 2023. The study focused on how economic, environmental and social sustainability accounting dimension influence key financial indicators like Return on Asset and Net Interest Margin. The study adopted ex-post facto research design using purposive sampling to select 10 out of 19 commercial banks. Sustainability accounting indicators were gotten from the Global Reporting Initiative. Economic, environmental and social dimensions were used as the independent variables. They were measured through a scoring index, derived from previous studies, while Return on Asset and Net Interest Margin served as the financial performance metric. Data from the selected banks were obtained from secondary sources (Audited financial statements). The analysis involved panel regression analysis and descriptive analysis using E-views 2025. Results indicated a significant relationship between economic sustainability accounting and Return on Asset and Net Interest Margin. The findings suggest that economic, environmental and social sustainability accounting dimensions have a notable impact on the Return on Asset and Net Interest Margin of commercial banks in Cameroon. The study recommends that commercial banks in Cameroon should formally integrate economic frameworks into their accounting and reporting systems to continuously monitor their sustainability impact and financial performance.