FINANCIA PERFORMANCE ANALYSIS OF ABYSSINIA BANK COMPARATIVE WITH THE INDUSTRY

Abstract

This study entitled ‘Financial Performance Analysis’ was conducted on Bank of Abyssinia comparative with the industry. Financial performance refers to the act of performing financial activity. It is the process of measuring the results of a firm’s policies and operations in monitory terms. Both the trend and comparative financial performance analysis approaches were used. The objective of the study is to evaluate the financial performance of Bank of Abyssinia by analysing its past five years (2013-2017) performance trend and comparing the financial performance of the bank with the average industry. Financial ratios were considered to measure the liquidity, efficiency and profitability as well as sustainability (financial and operating) of the banks. To achieve stated objective of study, the researcher used descriptive research methods. The quantitative approach were used and the study used secondary data. In both the financial performance analysis approaches i.e., the trend and comparative analysis, Bank of Abyssinia’s financial performance showed that weak performance fluctuating trends has been reported continuously in all the financial ratios (Profitability, Liquidity and Efficiency) taken for analysing the financial performance.