Olufunmike OBASESAN
Perinatal Journal - 2026;34(2):599-609
The financial performance of Deposit Money Banks (DMBs) worldwide is fundamental to the economic and financial framework of each nation; therefore, the stability and underlying economic performance of DMBs are crucial for a nation's economic development. Stakeholders in the banking sector, including depositors, shareholders, investors, and policymakers, exhibit significant concern regarding the financial performance of commercial banks due to the prevailing dangers associated with insufficient returns on investment. Sequel to this, this study aims to evaluate the effects of credit management on financial performance of Deposit Money Banks (DMBs) in Nigeria. Using purposive sampling technique, fourteen (14) banks were selected as the sample subjects. The validity and reliability were based on the statutory audit of their financial statement approved for use by CBN. The study adopted descriptive and inferential (regression) statistics in data analysis. The findings revealed that: credit management has significant effect on financial performance of Deposit Money Banks in Nigeria. Specifically, the study revealed that nonperforming loan has significant negative effect on financial performance. The study concluded that credit management influences the financial performance of deposit money banks in Nigeria. The study recommended that the management of deposit money banks in Nigeria should formulate and uphold a comprehensive credit management strategy and framework, together with a rigorous credit policy, to reduce non-performing loans and default rates, thereby enhancing their performance levels.
