The aim of this study is to show the impact of ratio analysis on the effective asset management of banking concern. It is also intended to identify the importance of ratio analysis, its limitations and how it can be effectively utilized in asset management of a Nigeria banking firm. It is the aim of business firms to optimize profit and maximize costs. In the high of this business firms try to channel their efforts towards buying the above aim into reality. Whoever, this aim of profit optimization cannot be achieved in isolation in the essence that business firms try to evaluate their performance with a view of funding their weakness and strengths so as to improve on them. Consequently, firms the various strategies to evaluate the performance from time to time one these strategies of performance evaluation is ratio analysis. In conclusion, business firms with effective utilization of the ratio analysis in making its assets management policies can high profitability results.