Effect Of Non-Performing Loans On Commercial Banks’ Profit Performance In Nigeria:- Anucha Ngozi F
ABSTRACT
The study sought to find the effect
ofnon-performing loans on commercial banks performance in Nigeria. Hence, the
study used time series data spanningfrom 1997 to 2015. The study employed
ordinary leastsquare (OLS) multiple regression model to analysed data on profit
after tax used to measure the performance ofcommercial banks, non-performing
loan, substandard loan and doubtful loan generatedfrom Zenith Bank annual
reports covering the timeframe reviewed. Following the results ofthe data
analysis, it wasfound that non-performing loans has a significant effect
onprofit after tax (proxyfor bankperformance). Sub-standard loans have a
negative and insignificant effect on commercial banks performance in Nigeria.
Also, it was evident that doubtful loans had a negative and significant effect
on commercial banks performance. Hence, the need for a strong policy on the
management of banks ’ creditfacilitywas recommended, needfor an immediate
change in the banks ’ managementstyle and internal control system ofthe banks
was also recommended. And lastly, need for a proper and well-articulated
analyses over all collaterals presentedfor loans and advances was also
suggested.
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MICHAEL, U (2026). Effect Of Non-Performing Loans On Commercial Banks’ Profit Performance In Nigeria:- Anucha Ngozi F. Mouau.afribary.org: Retrieved Apr 28, 2026, from https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-commercial-banks-profit-performance-in-nigeria-anucha-ngozi-f-7-2
UNIVERSITY, MICHAEL. "Effect Of Non-Performing Loans On Commercial Banks’ Profit Performance In Nigeria:- Anucha Ngozi F" Mouau.afribary.org. Mouau.afribary.org, 28 Apr. 2026, https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-commercial-banks-profit-performance-in-nigeria-anucha-ngozi-f-7-2. Accessed 28 Apr. 2026.
UNIVERSITY, MICHAEL. "Effect Of Non-Performing Loans On Commercial Banks’ Profit Performance In Nigeria:- Anucha Ngozi F". Mouau.afribary.org, Mouau.afribary.org, 28 Apr. 2026. Web. 28 Apr. 2026. < https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-commercial-banks-profit-performance-in-nigeria-anucha-ngozi-f-7-2 >.
UNIVERSITY, MICHAEL. "Effect Of Non-Performing Loans On Commercial Banks’ Profit Performance In Nigeria:- Anucha Ngozi F" Mouau.afribary.org (2026). Accessed 28 Apr. 2026. https://repository.mouau.edu.ng/work/view/effect-of-non-performing-loans-on-commercial-banks-profit-performance-in-nigeria-anucha-ngozi-f-7-2