Evaluation of Financial Performance of the Banking Sectors in Ethiopia: The Case of Zemen Bank

Abstract

This study was aimed at evaluating the financial performance of the banking sectors in Ethiopia with a special focus on Zemen Bank S.C. for the period 2009 to 2014. To meet the objective of the study, secondary sources of data, such as annual reports of the bank have been utilized. After collecting the necessary data, appropriate financial ratios and descriptive statistical techniques were employed for analyzing, interpreting and giving a condensed picture of the collected data. Accordingly, the results of the study reveal that the financial performance of the bank had kept on improving, if not fluctuating over time. Besides, the bank has performed well in profit earning and efficiently managing its assets for generating revenue, whereas there is a need for improvement in its much dependence on outside financing and the high proportion of non-performing loans.

Keywords: Financial Performance, Ratios, Banking sectors, Zemen Bank, Ethiopia