Portfolio Management and Performance of Listed Deposit Money Banks in Nigeria

This study was carried out to examine the effect of portfolio management on the performance of listed deposit money banks (DMBs) in Nigeria. The study anchored on the Modern Portfolio and Shiftability Theory adopted an ex-post facto approach. Hence, data were collected from the annual reports and accounts of banks with international authorization for the period 2016–2020. The study used the linear regression model in the data analysis. The empirical result of the research indicates a significant and positive relationship between credit risk management, liquidity risk management and performance (NAPS) of deposit money banks in Nigeria. Thus, the study concludes that portfolio management enhances and improves the financial performance of deposit money banks in Nigeria. In lieu of this, the study recommended the need for deposit money banks to monitor and take a closer look at their liquidity and also maintain optimum liquidity, which will go a long way in improving their financial performance. Also, DMBs should determine the optimum level for their loan-deposit mix up to when marginal cost (MC) is equal to marginal revenue (MR). This would help to bring the non-performing loans to a minimal level.