This empirical study investigated to determine how assets and liabilities derivatives affected the financial performance of Nigerian deposit money banks (DMBs) over a ten-year period, from 2014 to 2023.The study's specific goal is to investigate the relationship between financial performance as measured by Profit After Tax (PAT) and measures of assets and liabilities derivatives, such as Derivative Financial Assets (DFA), Cash and Cash Equivalent Derivative (CCED), Derivative Trading Income (DTI), Derivative Financial Liabilities (DFL), and Loan and Advance to Customers (LADC). Based on the factors under investigation, the study's data came from the annual reports and accounts of the ten DMBs listed on the Nigerian stock exchange. Descriptive statistics and correlation analysis were used to establish the type of association between the independent and dependent variables. A Panel Least Square (PLS) technique of data analysis was used utilizing the pooling model with the aid of E-VIEW 9.0 computer software. The Profit After Tax (PAT) of deposit money banks in Nigeria was found to be positively impacted by Derivative Financial Assets (DFA), Derivative Trading Income (DTI), Derivative Financial Liabilities (DFL), Loan and Advance to Customers (LADC), and Cash and Cash Equivalent Derivative (CCED). In accordance with the study's conclusions, the following recommendations were made: After taking into consideration the Central Bank of Nigeria's (CBN) regulations to reduce bad debt, limit their financial derivative liabilities and make sure that financial derivative assets are better utilized because they have a strong positive significant effect on profit after tax, and finally put in place adequate risk measuring systems that appropriately create structured limits on risk taking, deposit money banks should increase their loan assets to improve performance.
Uche et al. (Wed,) studied this question.