Management Ratings and Financial Performance of Quoted Commercial Banks in Nigeria

Malumi Happiness Olasumbo

doi:10.56201/ijbfr.vol.12.no6.2026.pg15.35

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Management Ratings and Financial Performance of Quoted Commercial Banks in Nigeria

Malumi Happiness Olasumbo

Abstract

This study examined the relationship between management rating and financial performance of quoted commercial banks using cross sectional data of 13 quoted commercial banks from 2016- 2025. Earnings per share and return on investment were modeled as the function of bank management rating 1-5. Panel data ordinary least square was used as data analysis methods. From model one, the study found that 96.2 % variation in earnings per share of the quoted commercial banks were determined by management ratings, Rating 1 have negative effect on earnings per share, rating 2 have positive effect, rating 3 have positive effect, rating and rating 5 have positive effect on earnings per share of the quoted commercial banks. Model two found that 96.2 % variation in the return on investment of the quoted commercial banks were traced to variation in management rating and Rating 1 have positive effect on return on investment, rating 2 have negative effect, rating 3have negative effect, rating 4 have negative effect while rating 5 have positive effect on return on investment of the quoted commercial banks over the periods of the study. From the findings, the study conclude that management rating determines the financial performance of the quoted commercial banks. The study recommends that financial regulatory body and bank managements should work together to come up with some policies that should improve banking sector efficiency. All the CAMELS model factors should be employed to evaluate the soundness of financial institutions. The regulators and management should also work hand in hand to deliver suitable policies that would not endanger financial intermediation and guarantee the customers' deposits are not more precarious and All commercial banks in Nigeria should comply with the ongoing recapitalization, this will enhance capital adequacy of the commercial banks. In order to increase performance, commercial banks must take the initiative in implementing the detailed plan to ensure the capital increase in the time period, review bad debts, and evaluate to what extent that bad debt can be converted into equity.

Keywords

Management RatingFinancial PerformanceEarnings per ShareReturn on Investment Commercial BanksManagement Rating 1

References

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Management Ratings and Financial Performance of Quoted Commercial Banks in Nigeria

Abstract

Keywords

References

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