Risk Asset Portfolio Management and its Influence on Branch Performance: Evidence from Nigerian Banks

This paper examines the role of risk asset portfolio management and its contribution to the branch level performance of the banks in Nigeria with special consideration given to the techniques that safeguard branch level performance through loan book growth and limited establishment of non-performing loans (NPLs). It relies on branch-level information and macro variables such as oil-price fluctuations and fluctuations in exchange rates, to focus on the role of diversification, pricing based on risk, and recovery models in promoting sustainable growth. The study with panel regression (both fixed-effects and instrumental variable models) is expected to show that well-diversified tech-enabled credit portfolios have the potential to improve branch ROA and ROE without increasing NPLs. The article can add value to the existing literature on emerging-market banking and substantially provide risk-management guidance in the Nigerian context.