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Research Article |

Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis

Financial institutions are economic pivotal that accelerate growth of a nation and serve as inter-connectivity with other sectors of the economy, in the absence of banks; economy may experience slow growth from lack of financial intermediation process. Banks were confronted with risk exposures which is injurious to banking that serves as catalyst for economic growth and development through financial intermediation, active portfolio management becomes inevitable, therefore this study examines the dynamic portfolio management and deposit money banks’ performance in Nigeria spanning over 13years (2009-2021) The data set were collected from the banks’ financial statements which was analysed using panel fully modified least squares and descriptive statistical methods, the normality test was also carried out with probability of 10.2 revealed that the residual is normally distributed. The result revealed that portfolio management has negative association with bank profitability. The challenges of optimal portfolio management and risk exposure is how to explore good risk measurement by banks to achieve optimal returns to the investors and likewise the banks by reducing the inherent risk in portfolio. Achieving vibrant performance by deposit money banks’ aptly demand the adoption of advanced technology by banks into their operations. The combination of Capital Asset Pricing Model with the elements of fundamental analysis methods help business entities to avoid systematic risks and to receive adequate returns.

Risk, Portfolio Management, Bank Performance, Capital Asset Pricing Model

Dele Jacob Ojomolade, Joseph Ifeanyi Ugwulali, Adewale Joshua Adejuwon. (2023). Dynamic Portfolio Management and Deposit Money Banks’ Performance in Nigeria: Panel Analysis . International Journal of Finance and Banking Research, 9(5), 90-96.

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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