ABSTRACT

This research study centres on the effect of credit management on profitability of deposit money bank. In this business of credit granting so much care should be taken to either reduce or eliminate such failures which sometimes result to bad debts. It is as a result of this, that financial institution must put in place to minimize the occurrence of bad debts. So the knowledge of credit management is needed to keep our banks afloat. From empirical study of profitability with X1, but considering however the relationship of X2and X3simply mean that X2and X3 does not varies as Y, also there is a 90% variation in X1 and Y so using t-test calculate > t-table. It implies that from X1 variable total profit are functions of secured loans. From the result, the findings significance that X1 (secured loans) is greater than the table therefore we reject that null hypothesis and accept the alternative which says that effective credit management lead to higher earning while X2(unsecured loans) and X3(total loans and advances) is less than t-table we accept the null hypothesis, which says that effective credit management does. This study has attempted to investigate the credit management on profitability of deposition money banks and particular Union Bank Nigeria Plc credit management is very vital in the banking industry becomes bank asset are concentrated on loan which can guarantee adequate level of liquidity and profitability and these can be achieve through professional competence.