Comparative Analysis of Financial Performance of Domestic and Foreign Banks in Tanzania

Abstract

The purpose of this study is to compare the financial performance of domestic and foreign banks in Tanzania for the period of 10 years from 2007 to 2016. The study used financial ratio analysis to measure financial performance and ANOVA to measure significant mean differences of profitability between domestic and foreign banks. Results of this study indicate that the profitability of Domestic banks is higher than the average profitability of the foreign banks In addition the study investigates through quantitative research employing ANOVA if any significant means difference of profitability between domestic and foreign banks really exists. The results show that there is no significant means difference of profitability between peer banks groups in term of ROA and NIM, yet a significant means of difference is seen between the peer

Keywords: Financial Performance, Banking Sector, Domestic banks, Foreign Banks, Financial ratios