An Assessment of Financial Performance of Commercial Bank of Ethiopia

Abstract

In most organizations whether manufacturing, merchandising or service rendering there is the absence of organized information showing the trend performance and position of each bank they are computing. This problem leads creditors, investors and with no information about the financial condition of the bank. The researchers motive to start this study is that since banks have a great benefit for economy and in facilitating the business facility activities it is essential to conduct the research and to solve the research and to solve banks problem. This study is conducted on commercial bank of Ethiopia and the main objective of this study is assessing the financial performance and position of the bank using its financial statement and to come up with alternative solution related to its positioning in the bank and its financial performance especially on its profitability, liquidity and activity ratio. The study uses primary and secondary data that means interview, questionnaires and financial report. It holds mixed and descriptive method of data analysis approach by using survey research design. The data would have analyzed based on the financial ratio analysis. Finally, according to the analysis; to know the liquidity, profitability and activity ratio of the bank, and then give recommendations to improve the strength as well as minimize the weakness of the bank on its financial performance and position.