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

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