ABSTRACT

This research work dealt on the impact of credit analysis and loan management on the profitability of deposit money banks (a case study of Union Bank Nigeria). The main objective of this work was to evaluate the various methods of credit management in order to improve them. It was noted that an efficient credit analysis involves a proper evaluation of the 6C's of credit and efficient loan management involves monitoring and reviewing of loans. Chi-square was used for the testing of the first hypothesis which is that the quality of the staff arid their experience in the banks credit department has no significant effect on credit management efficiency. Regression model was used for testing the second hypothesis which is that loans and advances have significant effect on the profitability of Deposit Money Banks. The result of the analysis of the first hypothesis revealed that the quality of staff and their experience in the Banks Credit Department has a significant effect on credit management efficiency while the result of the second hypothesis shows that loans and advances do not have a significant effect on the profitability of Union Bank of Nigeria. It was observed that the reason for the in significant effect of loans and advances on the profitability of Union Bank was because the bank does not give enough loans to its customers rather they make their profit from other bank charges. Since loans and advances make up the bulk of capital in the Deposit Money Banks. The recommendation was that Union Banks should give out more loans to their customers and monitor the loans to boost their profitability.