Evaluation of Financial Performance of Commercial Bank of Ethiopia

Abstract

This study was conducted to evaluate the financial performance of commercial bank of Ethiopia, in terms of Capital adequacy, assets quality, management capability, earnings, liquidity and sensitivity to market risk. In this study the data were collected from secondary data sources. The secondary data which covers most of the source are taken from the audited financial statement of commercial bank of Ethiopia. The collected data have been analyzed and presented by using different ratios. The findings of the study revealed that the financial performance of the bank for the period under the study was reasonably good when it is evaluated using audited financial statements. Since debt is known as a cheapest source of fund for business entities than other sources, the bank shall try to increase debt ratio to a reasonable extent and raise additional finance to expand the business as well as increase profitability.

Keywords: Commercial Bank of Ethiopia, Financial Performance, Financial analysis

DOI: 10.7176/RJFA/10-23-01

Publication date: December 31^st 2019