COMPARATIVE OF FINANCIAL STATEMENT ANALYSIS IN METERMEN AND MELKITE MICRO FINANCE INSTITUTION

Abstract

The Metermen MFIs are growing fast in terms of financial sustainability and outreach. But there are millions of people that are in need of financial services. The objective of this study was to assess the financial performance of MFIs in Melkite. Therefore, twenty-seven audited MFIs operating in Melkite had been selected for performance assessment. To analyze outreach, loan repayment (portfolio quality), financial sustainability, financial profitability and efficiency indicators were used. Based on Peer category of national bank of Metermen, the MFIs were classified into three and this was considered as an important factor to compare each category based on maturity, size, breadth of outreach, and operation scale. This study is based on quantitative research approach using panel data as the main data analysis technique. The study was based on a 9 years’ secondary data of 27 audited MFIs of Melkite obtained from the national bank of Ethiopia.