IMPACT OF CREDIT RISK MANAGEMENT ON PROFITABILITY OF DEPOSIT MONEY BANKS IN NIGERIA

This study investigates the impact of credit risk management on banks’ profitability in Nigeria from 2015 to 2024. The population of the study comprises of all the fourteen (14) deposit money banks listed on the Nigerian Exchange (NGX) Group as at 31 December, 2024. The study used ex-post facto research design. A panel estimation of fourteen banks from 2015 to 2024 was done using the random effect model framework. Our findings show that non-performing loan ratio (NPLR) has a statistically significant negative relationship with profitability (ROA). The loan to asset ratio (LAR) has a positive and statistically insignificant on bank profitability. The Capital Adequacy Ratio (CAR) has a negative and statistically insignificant on bank profitability. The Loan Loss Provision Ratio (LLPR), has a negative and statistically insignificant on bank profitability. Therefore, the study recommends that Banks should prioritize improving their loan screening and monitoring processes to reduce NPLR.