Journal of Finance, Accounting and Management, 10(1), 26-42, January 2019 26 Credit Risk Management and Financial Performance of Quoted Deposit Money Banks in Nigeria Hudu Gambo 1 , Abdu Ja’afaru Bambale 2 , Murtala Aminu Ibrahim 3 1,2,3 Department of Business Administration and Entrepreneurship Faculty of Management Sciences Bayero University, Kano-Nigeria g.hudu@yahoo.com, ajbambale.bus@buk.edu.ng & Sulaiman Abdulwahab Sulaiman 4 4 Department of Business Administration, Nasarawa State University, Keffi, Nigeria Abstract This study analyzed the effect credit risk management on the financial performance of quoted deposit money banks in Nigeria for a 9-year period (2010-2018). The study used data gathered from annual reports and financial statements of seven deposit money banks. Credit risk management was proxied by Loan to deposit ratio, credit risk, capital adequacy risk, and solvency risk while financial performance was proxied by return on assets. Firm size served as control variable. The study uses ex-post factor research design. Descriptive and inferential statistics comprising: Correlation Analysis, Multiple Regression Analysis using Ordinary Least Square and Generalized Least Square methods of Panel Regression Models were used. STATA 13 software aided the analysis. The findings revealed that Loan to deposit ratio, credit risk and capital adequacy risk have insignificant effect on return on assets while solvency risk and firm size have positive significant effect on return on assets. The study therefore, recommends that the management of the banks should establish a proper credit risk environment, sound credit granting processes, appropriate credit administration, measurement, monitoring and control over credit risk, policy and strategies that clearly summarize the scope and allocation of bank credit facilities as well as the approach in which a credit portfolio is managed i.e. how loans are originated, appraised, supervised and collected, which are the basic elements for effective credit risk management. The bank management should sustain or improve on the level of total assets as it enhances firms' size. Keywords: deposit money banks, financial performance, return on assets, credit risk management 1. Introduction Credit risk is one of the major types of risk threatening continuous existence of banks and other financial institutions which engages in the disbursement of loans. Credit risk in the simplest terms, is the risk of default. Credit risk is the possibility that a bank customer- individual or corporate will not meet loan repayment obligation as at when due. Credit creation is one of the main income generating activities for the banks and adequate management of credit risk is critical for the survival, growth and development of banks. In fact, banks give target to staff particularly marketing