Financial Performance Analysis In Ethiopian Banking Sector
Download Financial Performance Analysis In Ethiopian Banking Sector full books in PDF, epub, and Kindle. Read online free Financial Performance Analysis In Ethiopian Banking Sector ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
| Author | : Abara Gudata |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 72 |
| Release | : 2014 |
| Genre | : |
| ISBN | : 9783659517754 |
This Project book is the original work of the author that was prepared by referring different relevant documents to provide the conceptual and theoretical foundations of financial management theory. It was prepared for the purpose of earning the MBA degree. It discusses the concept of financial performance analysis in case commercial banking sector. In order to achieve the research objectives the study employed financial ratio analysis of Ethiopian Commercial banks during 2008-2012. The background area, methodology, discussion, conclusions and recommendations were stipulated inside the paper. The findings was arrived at by employing T-test hypothesis to check the difference between operational efficiency, liquidity management, assets management, profitability position among selected Commercial banks in Ethiopia.
| Author | : Tarekegn Tamiru Woldesenebt |
| Publisher | : GRIN Verlag |
| Total Pages | : 82 |
| Release | : 2019-01-25 |
| Genre | : Business & Economics |
| ISBN | : 3668870551 |
Thesis (M.A.) from the year 2011 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Very Good, Mekelle University, language: English, abstract: The objective of the study was to compare the financial performance of commercial Banks by using their average ratio in terms of profitability, liquidity, efficiency, and solvency. In this study by using excel analyzed information was presented by statistical measures like graphs and tables. Both the trend and comparative financial performance analysis approaches were used. Five years audited financial reports from 2005 to 2009 of the commercial banks were taken for comparison purpose. Those commercial banks taken for comparison were Commercial Bank of Ethiopia, Dashen Bank Share Company, Bank of Abyssinia, United Bank, Wegagen Bank, and Nib International Bank. Year of establishment, amount of capital reserve, and number of branches are taken as a criterion for selecting these commercial banks for analysis purpose. In addition to data gathered from secondary sources, unstructured interview was conducted on problem and prospects related to the financial performance of commercial banks and the responses were presented. The respective ratios of each bank are compared with the average ratios of the six commercial banks taken for the study. Then trend analyses of six commercial banks taken in this study are presented by using the above ratios. In both the financial performance analysis approaches i.e., the trend and comparative analysis, Commercial Bank of Ethiopia (CBE) showed good performance in financial ratios of Profitability, Liquidity, and Solvency ratio, but Bank of Abyssinia(BOA) has showed weak performance in all above explained financial ratios. From this, it is concluded that CBE was profitable and functionally efficient and BOA is less profitable and the earning capacity of the bank is weak. Therefore, in order to improve profitability the management of BOA must increase management efficiency by reducing administrative expenses to the best possible level, efficiently control costs and utilize customers deposit, dispose of the assets which are not contributing for the profitability of the banks and work to maximize the overall profitability of the bank through investing in profitable avenue.
| Author | : Mudesir Kasim |
| Publisher | : GRIN Verlag |
| Total Pages | : 62 |
| Release | : 2020-02-21 |
| Genre | : Business & Economics |
| ISBN | : 3346117871 |
Master's Thesis from the year 2016 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: 3.5, , language: English, abstract: The general objective of this study is to investigate the impact of income source diversification on financial performance of commercial banks in Ethiopia. Commercial banks in Ethiopia are currently facing competition from non-bank institutions entry into the activities which was in the past only role of banks. Therefore, banks started searching new income sources rather than focusing only traditional inter-mediation income generating activities. Thus, this study was to examine the impact of income sources diversification on bank performance in case of some selected commercial banks in Ethiopia by using panel data over the period 2010-2015. The study used secondary data collected mainly from each sampled banks annual report financial statements. Since the data is secondary in nature, quantitative approach was adopted. This data was analyzed by using STATA version 12 and Microsoft Excel. Fixed effect model was used, since this model is preferred than the random effect model based on the hausman specification test. Return on asset (ROA) was used as dependent variable while income diversification (Div) as independent variable with control variables such as bank size (BS) in terms of total assets, equity/ assets ratio (EAR), loan/asset ratio (LAR) and expense/income ratio (Exp). The findings of the study show that the level of diversification has a positive impact on financial performance of Ethiopian commercial banks. In addition, the study also revealed that EAR, LAR and BS had positive impact on financial performance while Exp had negative impact. The results of the study are important for bankers to understand how income diversification affects the performance of banks. Therefore, the study recommended that banks should diversify their sources of income into interest and non-interest as well as reduce operating expense in effective way, so as to enhance their performance (ROA).
| Author | : Abdihakeem Omer |
| Publisher | : GRIN Verlag |
| Total Pages | : 107 |
| Release | : 2023-02-10 |
| Genre | : Business & Economics |
| ISBN | : 3346810380 |
Master's Thesis from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Very Good, , course: MBA - FINANCE, language: English, abstract: The Ethiopian banking system is very much behind in the adoption of financial innovations compared to the rest of the world, however, the Ethiopian financial sector cannot remain an exception in expanding the use of the modern banking. The main objective of this study was to examine the effect of financial innovations on the profitability growth of commercial banks in Ethiopia. The specific objectives were to examine the effect of product innovation, bank specific factors and macro-economic factors on profitability growth in commercial banks. The study were used quantitative research, secondary data, and data was analyzed using both descriptive and inferential statistics and employed purposive sampling technique to select 12 banks for the study in the periods from 2016 to 2019. Multiple regression with the aid of STATA 14 software was used to examine in this study.
| Author | : Lelissa Tesfaye Boru |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 76 |
| Release | : 2014-12-11 |
| Genre | : |
| ISBN | : 9783659619472 |
The aim of the study is to assess the impact of financial liberalization on the ownership structure, market concentration and profitability performance of the Ethiopian banking industry. The study found out that the reform has brought a lot of remarkable changes on the structure and performance of the banking sector as compared with the situations prevalent before the reform period. However, as tested by both two firm concentration ratio and HHI using total deposits, loans, capital and assets, the banking industry in Ethiopia can still be distinguished by its market concentration towards the big government owned commercial banks and by a market characterized by little and insufficient competition.
| Author | : Sakilu Olani Bekele |
| Publisher | : LAP Lambert Academic Publishing |
| Total Pages | : 96 |
| Release | : 2014-01 |
| Genre | : |
| ISBN | : 9783659515651 |
A sound resilient banking system with good corporate governance is vital for the institutions to survive in an increasingly open environment. In light of the above, the study is important for the following reasons. The findings of the study are pertinent for policy-makers, corporate boards, executives and other stakeholders. This study might fill the gap in the literature by examining the corporate governance practices on the financial performance of banks in the case of Ethiopian commercial banks. Overall, since the financial sector of the country is relatively small, closed and much less developed than those of its neighbors the findings of this study will be very vital for understanding corporate governance practices and bank performance in a context of developing country.
| Author | : Barbara Casu |
| Publisher | : Pearson Education |
| Total Pages | : 566 |
| Release | : 2006 |
| Genre | : Business & Economics |
| ISBN | : 9780273693024 |
Provides a comprehensive introduction to theoretical and applied issues relating to the global banking industry. The text is organised into four main Sections: Introduction to Banking; Central Banking and Bank Regulation; Issues in Bank Management and Comparative Banking Markets. Over recent years there has been a lack of a comprehensive yet accessible textbook that deals with a broad spectrum of introductory banking issues. This text fills that gap. This book is suitable for all undergraduate students taking courses in banking. It is also great background reading for postgraduate students.
| Author | : Biruk Bekele |
| Publisher | : |
| Total Pages | : 122 |
| Release | : 2016 |
| Genre | : |
| ISBN | : |
This study aims to determine links and impacts of risk management practices of financial performance on commercial banks in Ethiopia. The sample banks included in this study consisted of eight commercial banks operating in Ethiopia. The study was used secondary data source and collected from audited financial statements reported by National Bank of Ethiopia and commercial banks from 2004-2013 fiscal periods to determine indicators of risk management practice. Then, the collected panel data was analyzed and described by basic statistical techniques such as descriptive analysis, trend analysis, Pearson correlation analysis and GLS fixed effect regression analysis was employed by using STATA version 12.0 Risk management practice surrogate by banks specific risk selected indicators on credit risk (non-performing loan ratio), operational risk (efficiency on assets utilization, bank size and cost ratio's ) , liquidity risk (liquidity ratio's) ,capital risk (capital adequacy ratio) and insolvency risk(total equity to total debt ratio) as explanatory variables while financial performance proxy by return on assets(ROA) used as dependent variables of the study. The findings of the study reveal that, credit and Liquidity, risk management practices have a negative and significant statistical impact on commercial banks' performance Similarly, capital and insolvency risk management practice have negative and insignificant impact on commercial banks' performance due to underinvestment or excessive holding of assets. Despite the fact that, operational risk management (efficiency and cost) practices have a positive and significant statistical impact on banks' performance which, means that these banks not suffered managing this type of risk during the study period. On the other hand, operational risk management proxy by bank asset size ratio has positive and insignificant impact on financial performance of commercial banks'. Therefore it is suggested that, prudent risks management practices are required for banks on (credit risk, liquidity, capital risk, insolvency and operational risk) in order to protect the interests of investors as well as to maintain regulated healthy financial system all over the economy of the country by enhancing public trust.
| Author | : Donald E. Kieso |
| Publisher | : Wiley |
| Total Pages | : 0 |
| Release | : 2009-09-29 |
| Genre | : Business & Economics |
| ISBN | : 9780471771920 |
The Gateway to the Profession 99% of surveyed practicing accountants feel that Kieso, Weygandt, and Warfield's Intermediate Accounting helped prepare them for success in professional practice. 100% would recommend the text to someone currently studying for an accounting degree. 80% said they referred to their copy when they first entered professional practice. Professionals who learned accounting from Intermediate Accounting find themselves well prepared to enter the workplace. So well prepared in fact, that many keep their copy of the text to refer to again and again. Why is this text so essential for professional success? * Currency--This 12th edition of Intermediate Accounting reflects the state-of-the-art in accounting today. The text is kept current with the Intermediate Accounting Newsletter, a periodical for users of the text that spotlights the very latest developments and their implications. * Real-world examples and illustrations--Numerous examples from real corporations help you understand exactly how professionals apply accounting principles and techniques. International Insight notes compare accounting practices in other countries. * Hands-on practice--This 12th edition features Professional Simulation problems, modeled on the new computerized exam. In addition, new accounting research exercises help you practice using the Financial Accounting Research Database System (FARS). * Comprehensive and clear explanations of concepts--The authors' clear writing style and logical organization help you understand the material. Make Kieso your gateway to the profession!
| Author | : Zelalem Birhan |
| Publisher | : GRIN Verlag |
| Total Pages | : 85 |
| Release | : 2023-11-16 |
| Genre | : Business & Economics |
| ISBN | : 3346970485 |
Master's Thesis from the year 2020 in the subject Economics - Economic Cycle and Growth, grade: 3.33, Ethiopian Civil Service University, language: English, abstract: This paper examined the relationship between banking sector development and economic growth in Ethiopia. The paper also examines the effect of banking development on economic growth in Ethiopia and to establish which theory holds for Ethiopia between the demand-following and the supply-leading theory. Unlike the majority of previous studies, this study uses the newly developed ARDL-bounds testing approach to examine the relationship. The ARDL-bounds testing approach has numerous advantages over other co-integration techniques, especially when a short time-series dataset is used. In order to test the robustness of the empirical results, three proxies of bank-based financial development have been used; namely: 1) the domestic credit provided by the banking sector as a ratio of GDP, 2) broad money supply as a ratio of GD, 3) private credit as percentage of GDP. Annual time series data between the years 1987 and 2019 were used for the study, from the National Bank of Ethiopia (NBE) statistical bulletin. The structural break unit root test revealed that all the variables are stationary at their first difference; the bound test cointegration analysis established the existence of long run relationship among the variables. The ARDL revealed that domestic credit provided by the banking sector significantly affected economic growth in the long run, while private credit statistical significant and negatively affect economic growth in the short run during the period of study. The empirical results of this study show that the effect of banking sector development and economic growth in Ethiopia is sensitive to the proxy used to measure the banking sector development. The policymakers need to make policies that can lead to establishment of banking institutions in the rural areas which have limited access to banking services and create enabling legal environment for efficient allocation of credit to the private sector at the same time the supervisory organ shall establish conducive environment for banking institution which are engaging in loan granting for diversified economic sectors for private investment.
