PORTFOLIO MANAGEMENT AND FINANCIAL PERFORMANCE OF LISTED DEPOSITS BANKS IN NIGERIA

Abstract

This study addresses the effect of portfolio management on the performance of chosen deposit money banks recorded on the Nigeria stock exchange more than a ten-year time frame (2013 - 2022). The study specifically investigates the connection between capital sufficiency proportion, liquidity proportion, non-performing loan proportion, and return on asset of the chosen DMBs. This study used an ex post facto research design. the population of the study were all the Deposit money banks that are listed on the Nigeria Stock Exchange (NSE). Purposive sampling was used I selecting ten deposit money banks. A subset of Nigerian deposit money banks' annual reports served as the secondary source of data for this study. The data structure contains a cross section and time series due to the presence of many banks at various time frames, resulting in panel data. data collected were analyzed using a multiple regression model. Hausman test statistics was also employed to determine which of the resulting fixed and random models is the most appropriate. The result indicates that jointly the independent variables (CAR, LR and NPL) have significant relationship with the dependent variable (ROA). In line with the findings the study concludes that, there is a significant relationship between portfolio management and performance of the selected DMBs. based on the conclusion, the study recommended that, Depository cash banks ought to lessen the quantity of non-performing credits by further developing staff impressive skill, reinforcing an expected level of effort and fortifying their control measures.