Portfolio Management and Financial Performance of Listed Deposit Money Banks in Nigeria

Kehinde Gabriel Ajose; Oluwaseyi Ayodele Adedipe; Olufemi Emmanuel Taiwo

doi:10.58709/niujms.v12i1.2377

Kehinde Gabriel Ajose Mcpherson University, Seriki Sotayo, Ogun State, Nigeria
Oluwaseyi Ayodele Adedipe Ajayi Crowther University Oyo, Nigeria
Olufemi Emmanuel Taiwo Ajayi Crowther University Oyo, Nigeria

DOI: https://doi.org/10.58709/niujms.v12i1.2377

Abstract

Portfolio Management and Financial performance are key indicators used to measure the growth and activities of listed deposit money banks in Nigeria. Portfolio management involves investment and administration of a portfolio of securities, in accordance with the investors’ preference while reducing risk and increasing the returns. This study investigated the effect of portfolio management and financial performance of listed deposit money banks in Nigeria. To achieve this, secondary data obtained from the annual financial statement of the Nigerian Exchange Group (NEX) as at 31^st December, 2024 were used as the primary source of data for the study. The research population was all the 24 listed deposit money banks in Nigeria, out of which a sample size of ten (10) listed deposit money banks were chosen using purposive sampling. Validated data were obtained from the annual published reports of the sampled banks for a period of 10 years (2015-2024). The data were descriptive in nature. The study adopted the ex post facto research design and regression analysis to analyze the relationship between portfolio management activities and the financial performance of the sampled deposit money banks. The results of the study shows that Portfolio management has positive significant effect on return on asset of listed deposit money banks in Nigeria, positive significant effect on return on equity of listed deposit money banks in Nigeria. The results of the study concluded that portfolio management activities have positive and significant effects on the financial performance of the listed deposit money banks in Nigeria. The study recommended that deposit money banks should invest more in portfolio management activities in order to drive better financial performance. In addition, the study recommended better monitoring of portfolio management activities by deposit money banks in order to ensure proper utilization of funds and resources.

Keywords: Portfolio Management, Financial Performance, Return on Assets, Return on Equity and Net Profit Margin.