IMPACT OF CREDIT RISK ON FINANCIAL PERFORMANCE OF LISTED DEPOSIT MONEY BANKS IN NIGERIA

The study examined the impact of credit risk on financial performance of listed deposit money banks in Nigeria. The study adopted correlation and ex-post factor research design. The population of the study consist of all listed deposit money banks in Nigeria. Census sampling technique is employed. Multiple Regression model based on ordinary least square (OLS) was adopted in analyzing the panel data obtained from audited financial statement of listed samples banks via Nigeria exchange group the period between (2013-2022) The findings revealed that loan loss provision has a positive and significant influence on financial performance of deposit money banks in Nigeria. On the other hand, non-performing loan has a positive but insignificant influence on financial performance of listed deposit money banks. Liquidity has a negative but significant relationship. Therefore, it is recommended that deposit money banks in Nigeria should adopt a comprehensive financial policy in order to encourage loan loss provision and non- performing loan policies which will ultimately help in enhancing the listed deposits money banks financial performance in Nigeria.