Portfolio Management and Bank Performance in Nigeria

Abstract

Examination into portfolio management and bank performance was the core objective of the study, it however discussed the impact of loan risk analysis, loan risk diversification and loan risk monitoring on bank performance (Return on asset) in Nigeria. The study relied heavily on both primary and secondary sources of data collection. Primarily, data were obtained from portfolio management scale while the secondary source was obtained from Annual financial statement of account. Multiple and logit regression analyses were employed in analysing the data using SPSS 20.0. Empirically, the study found that loan risk analysis, loan risk diversification and loan risk monitoring positively and significantly affect bank performance in Nigeria. Based on this, the study concluded that loan portfolio management positively affects deposit money banks in Nigeria.

Keywords: Portfolio management, loan risk analysis, loan risk diversification, loan risk monitoring, Bank performance