EFFECT OF PROFITABILITY AND LIQUIDITY MANAGEMENT ON PERFORMANCE OF MONEY DEPOSIT BANK IN NIGERIA (A STUDY OF UNION BANK OF NIGERIA PLC., ABA)

This research was focused on "Effect of profitability and liquidity management on performance of money deposit banks in Nigeria". The problems that necessitated research, work are poor Net interests margin, poor management of return Asset, and poor return on investment. The objects of the study were to: examine the impact of profitability and liquidity management on Net interest margin of money deposit loans, evaluate the impact of profitability and liquidity management on Return Asset of money deposits banks and assess the impact of profitability and liquidity management on the return of investment of money deposit banks. The research employed descriptive research design. The research population size was 100. Yaro Yamane formula was used to determine the sample size of 80. The questionnaires distributed were analyzed using tables of percentages and chi-square (X^{2}) statistical tool. Findings of the research work showed that profitability and liquidity management has significant impact on Net interest margin of money deposit banks, profitability and liquidity management has significant impact on return of investment of money deposit banks. The researcher hence, concluded that effective liquidity management ensures that banks can meet their short-term obligations and interest in profitable opportunities, which enhances overall performance. Profitability management, through determine optimization and cost control, directly impacts the financial performance of bank. Maintaining adequate liquidity levels helps bans comply with regulatory requirements, which is crucial for this stability and reputation. This compliance also prevents penalties and supports sustainable growth. It was further recommended that banks should strategically invest in assets with varying degrees of liquidity to maximize returns while maintaining sufficient liquidity to meet short-term obligation.