Portfolio Management in the Banking Industry and its effect on Corporate Performance

Corporate performance in banks is a crucial factor that deserves ardent study in order to fashion out an approach of augmenting it. To articulately achieve reliable corporate performance in banks, there is a need to design a portfolio management policy that would drive home the expectations of banking stakeholders on corporate performance. This study which delved into portfolio management in the banking industry and its effect on corporate performance considered the responses to a questionnaire of the key staff in portfolio/credit management, marketing and administration in six of the existing commercial banks in Nigeria. The sample of 120 workers was drawn randomly to give room for equal representation and to avoid bias in responses. Three research questions were used for the study and statistical package for the social sciences (SPSS) version 21 was used to analyze the data. The percentage was used to rate the responses of the participants. The finding from the study showed that banking and CBN policies on portfolio management have a significant effect on the corporate performance of the bank. It is therefore recommended that banks should design appropriate policies that would aid their portfolio management strategies and thus enhance their corporate performance.