Loan Management and Financial Performance of Quoted Deposit Money Banks in Nigeria

The 2017 International Conference on African Entrepreneurship and Innovation for Sustainable Development (AEISD)

21 Pages Posted: 5 Sep 2017

See all articles by Nestor Amahalu

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy

Obi Chinyere

University of Nigeria Enugu Campus

Mary-Fidelis Chidoziem Abiahu

Nnamdi Azikiwe University - Department of Accountancy

Ezechukwu Beatrice

Federal Polytechnic, Oko

Date Written: July 26, 2017

Abstract

The objective of this study was to determine the relation between loan management and financial performance with a focus of deposit money banks evaluate on the floor of Nigerian stock exchange from 2010-2015. This study made use of secondary data obtained from fact books, annual report and accounts of the listed deposit money banks in Nigeria. The relevant data obtained were subjected to statistical analysis using STATA 13, Pearson co-efficient of correlation and multiple regression analysis were the statistical tools used for this study, the result of this study revealed that there is a positive and statistically significant relationship between loan management (Proxied by Non Performing Loan & Deposit) and financial performance (ROA, EPS, DPS of quoted deposit money bank in Nigeria). This study recommended that management of deposit money banks in Nigeria should enhance their skills in credit analysis and loan management.

Keywords: Loan Management, Financial Performance, Credit Risk

JEL Classification: M41

Suggested Citation

Amahalu, Nestor and Obi, Juliet and Abiahu, Mary-Fidelis Chidoziem and Beatrice, Ezechukwu, Loan Management and Financial Performance of Quoted Deposit Money Banks in Nigeria (July 26, 2017). The 2017 International Conference on African Entrepreneurship and Innovation for Sustainable Development (AEISD) . Available at SSRN: https://ssrn.com/abstract=3029465

Nestor Amahalu

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria
+2348063393668 (Phone)

Juliet Obi

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

Mary-Fidelis Chidoziem Abiahu (Contact Author)

Nnamdi Azikiwe University - Department of Accountancy ( email )

Awka, Anambra 23400
Nigeria

Ezechukwu Beatrice

Federal Polytechnic, Oko ( email )

PMB 021 Aguata
Anambra +234
Nigeria
08033887708 (Phone)

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