Abstract

<p>In today’s dynamic business environment, risk management and improvement of cash flows are very challenging. The study <br>examined the effect of credit risk management on the financial performance of Zenith Bank Nigeria Plc Akwa Ibom State for the<br>period of 2011-2020. Secondary data were sourced from annual reports and financial statement of Zenith Bank Nigeria Plc. The<br>study employed ordinary least square regression technique in analyzing the data extracted with the aid of E-View Econometric <br>tool. The R-squared which measures the overall goodness of fit of the regression shows the value of 84.5%, while the Durbin <br>Waston statistic with value of 2.808450 shows that there is relative auto correlation among the considered variables and the <br>overall regression is statistically significant. The result shows that risk control and risk diversification have significant positive <br>effects on financial performance, while risk appraisal has a negative and insignificant effect on financial performance of Zenith <br>bank Plc Akwa Ibom State. It was recommended that management of bank should ensure that credit officers adheres strictly to <br>guidelines when issuing out credit facilities. The researcher conclude that credit risk management has a significant positive <br>effect on the financial performance of Zenith Bank Nigeria Plc Akwa Ibom State</p>