Assessment of Financial Performance of Bank of Abyssinia

Abstract

This study entitled ‘Financial Performance Analysis’ was conducted on Bank of Abyssinia. Trend financial performance analysis approaches were used. Five years audited financial reports from 2018 to 2022 of Bank of Abyssinia were taken for analysis purpose. So far, most researches have tried to assess the growth of Bank of Abyssinia relative to state-owned banks in terms of asset ownership and loan granting ability. But this paper has tried to assess specifically the five-year trend of Bank of Abyssinia as a case study.The objective of the study is to evaluate the financial performance of Bank of Abyssinia by analyzing its past five year’s performance trend and comparing the financial performance of the bank with in 2018 to 2022. Financial ratios were considered to measure the liquidity, efficiency and profitability as well as risk and solvency of Bank of Abyssinia.In the financial performance analysis approaches i.e., the trend analysis, Bank of Abyssinia’s financial performance showed that weak performance has been reported continuously in all the financial ratios (Profitability, Liquidity, Risk and Solvency and Efficiency) taken for analyzing the financial performance.