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

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Muhabie Mekonnen Mengistu
Muhabie Mekonnen Mengistu
α Pan African University Institute for Basic Sciences, Technology and Innovation

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

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Abstract

This study is 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 revealed 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 nonperforming loans.

References

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Muhabie Mekonnen Mengistu. 2015. \u201cEvaluation of the Financial Performance of Banking Sectors in Ethiopia: The Case of Zemen Bank\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 15 (GJMBR Volume 15 Issue C9): .

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Issue Cover
GJMBR Volume 15 Issue C9
Pg. 51- 64
Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification: JEL Code: G32
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v1.2

Issue date

October 17, 2015

Language
en
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This study is 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 revealed 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 nonperforming loans.

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

Muhabie Mekonnen Mengistu
Muhabie Mekonnen Mengistu Pan African University Institute for Basic Sciences, Technology and Innovation

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