scholarly journals Performance Evaluation of Commercial Banks in Oman Using Ratio Analyses

2021 ◽  
Vol 2 (1) ◽  
pp. 10-21
Author(s):  
Firdouse Khan ◽  
◽  
Iman Al Maktoumi ◽  
Keyword(s):  
Asset Management ◽  
Commercial Banks ◽  
Secondary Data ◽  
Operational Efficiency ◽  
Annual Reports ◽  
Return On Assets ◽  
Return On Equity ◽  
Interest Income ◽  
Income Ratio ◽  
Equity Management

Purpose of the study: The purpose of the study was to critically analyze the effectiveness of banks’ performances and to examine the associations amongst the asset management, banks’ size, operational efficiency, and their impact on the bank’s performance. Design/Methodology/Approach: The secondary data was obtained from the annual reports of five selected commercial banks of Oman listed in the Muscat Securities Market (MSM) for the period 2013 to 2019. The collected data was analyzed through financial ratios using excel and SPSS and was used to evaluate the banks’ performance. Findings: The study revealed that the Operational Efficiency (OE) of the selected commercial banks had an impact on the Return on Assets (ROA); advances of the selected commercial banks had an impact on the interest income whereas operational efficiency of the selected commercial banks had NO impact on the Interest Income. The study further confirmed that Bank Muscat proved to be the bank that performed well over the years 2013 to 2019. Research Implications: The study proved that the banks’ financial performances can be measured through the assets size, asset management, and equity management using ratio analysis which can be a good measure to adjudge the financial performances of the banks. Social Implications: The study helps the stakeholders of the banks to understand the factors and the banking activities that might help to enhance the financial performances of the banks and to take necessary action and suitable decisions accordingly. Originality/value: The study was restricted to five selected commercial banks of Oman and the study had relied mostly on quantitative techniques involving ratio analyses. The study can be extended to all the commercial banks in Oman including the most determining factor viz. customer satisfaction. Keywords: Financial Performance of Banks, Operational Efficiency, Return on Assets, Return on Equity, Interest Income, Ratio Analyses

scholarly journals THE LIQUIDITY AND PROFITABILITY TRADEOFF OF COMMERCIAL BANKS IN NIGERIA

2021 ◽  
Vol 2 (2) ◽  
pp. 17-26
Author(s):  
O. D. Adegboye
Keyword(s):  
Correlation Coefficient ◽  
Commercial Banks ◽  
Management Strategies ◽  
Secondary Data ◽  
Least Square ◽  
Annual Reports ◽  
Return On Assets ◽  
Coverage Area ◽  
Liquidity Management ◽  
Ordinary Least Square

This study used empirical facts and assessed the trade-off of profitability versus liquidity (and vice versa) for five commercial banks in Nigeria. Multivariate research design, regression analysis, Ordinary Least Square, and correlation coefficient approaches were used to apply quantitative methodologies to data collected. Amongst the population of twenty-two banks, Zenith, First, United Bank for Africa, Guaranteed Trust and Union Banks were chosen as case studies for this study using a purposive sample approach. Secondary data was gathered from their five-year annual reports, which were published between 2015 and 2019. The correlation coefficient was employed to test the hypothesis, which revealed that there was a statistically perfect correlation (positive and negative) between LA (loans), BA (bank advances), and MDI (marketable debt instruments) against PAT (profit after tax) and ROA (return on assets). Furthermore, since banks strive to maintain their current assets, the findings revealed that efficient liquidity management is a key determinant that may boost or impair a bank’s profitability. To avoid future insolvency and bankruptcy, this study recommends that these banks use contemporary and effective liquidity management strategies amid the current post-pandemic environment. In addition, while focusing on the same topic of research, interested scholars should make significant use of a broader data coverage area. 

scholarly journals FACTORS AFFECTING RETURN ON ASSETS IN SHARIA COMMERCIAL BANKS

2019 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
ADE SOFYAN MULAZID ◽  
REDHO AFRIANDI ◽  
HERNI ALI HT
Keyword(s):  
Commercial Banks ◽  
Secondary Data ◽  
Operational Efficiency ◽  
Debt Financing ◽  
Efficiency Ratio ◽  
Equity Financing ◽  
Return On Assets ◽  
Financial Reports ◽  
Factors Affecting ◽  
Operating Margin

This study aimed to analyze the influence partially between non - performing financing (NPF) on return on assets, the financing to deposit ratio on the return on assets, the debt financing on return on assets, the equity financing to return on assets in sharia commercial banks. In addition, to analyzed partially the effect of operational efficiency ratio on return on assets, between net core operating margin on return on assets, and simultaneous influence between non-performing financing, deposit financing ratio, debt financing, equity financing, operational efficiency ratio and net core operating margin on return on assets at sharia commercial banks. Data processing method used by the researcher was multiple regression analysis. The data obtained is secondary data based on financial reports on sharia commercial banks within six years. The results of this study indicate that there are simultaneous effects on variables (non-performing financing, financing to deposit ratio, debt financing, equity financing, operational efficiency ratio and net core operating margin) on return on assets.

scholarly journals PENGARUH PEMBIAYAAN MUSYARAKAH TERHADAP PROFITABILITAS PADA BANK UMUM SYARIAH (BUS) PERIODE 2015-2017

2019 ◽  
Vol 3 (2) ◽  
Author(s):  
Lucy Auditya ◽  
Lufika Afridani
Keyword(s):  
Data Analysis ◽  
Commercial Banks ◽  
Secondary Data ◽  
Financial Statements ◽  
Islamic Banks ◽  
Simple Linear Regression ◽  
Return On Assets ◽  
Financial Reports ◽  
Return On Equity ◽  
Analysis Technique

The purpose of this study was to determine the effect of musyarakah financing on profitability in Sharia Commercial Banks in Indonesia for the 2015-2017 period and to find out how much influence musyarakah financing had on profitability in sharia commercial banks for the period 2015-2017. The limitation of the problem of this research is on the profitability of financial ratios ROA (Return On Assets) and ROE (Return On Equity). To disclose these issues in depth and thoroughly, researchers used a quantitative approach with secondary data collection techniques in the form of financial statements of each sharia bank for three consecutive years and provided quarterly financial reports, obtained by 5 Islamic banks to obtain 60 data. The data analysis technique used is simple linear regression using the SPSS version 16. Then the data is described, analyzed and discussed to answer the problems raised. From the results of the study it was found that musyarakah financing had a significant effect on ROA at alpha 5%. This is evidenced by the significance value (Sig.) (0.002) <(α) 0.05. While musyarakah financing has no significant effect on ROE at alpha 5%. This is evidenced by the significance value (Sig.) (0.669)> (α) 0.05.

scholarly journals Profitability and Consistency of Ceramics Industry- A Financial and Statistical Analysis on Selected Companies of Bangladesh

2015 ◽  
Vol 9 (2) ◽  
pp. 1-13
Author(s):  
Abdul Latif ◽  
Rezaul Kabir
Keyword(s):  
Sales Management ◽  
Secondary Data ◽  
Profit Margin ◽  
Annual Reports ◽  
Return On Assets ◽  
Return On Equity ◽  
Operating Profit ◽  
The Poor ◽  
Net Profit ◽  
Ceramics Industry

This paper examines the profitability and consistency of the second leading export oriented industry of Bangladesh. The secondary data of the five leading companies namely, Fu-Wang, Monno, Shinepukur, Standard and RAK Ceramics are collected from the annual reports of 2006-2012 from their websites. The collected data are processed and analyzed by SPSS 19 to make interpretations by ANOVA outputs. Different financial tools like Gross profit margin, Operating profit margin, Net profit margin, Return on assets, Return on equity are calculated along with the liquidity ratios and turnover ratios to find out the causes of unexpected results, if any. The researchers find that two of the five companies (Standard and Monno) are performing very poorly, one (Fu-Wang) is performing moderate level and other two (RAK and Shinepukur) are performing comparatively better. The asset and sales management of the poor performers are to be improved immediately, the liquidity position of all the companies is to be improved and the capital structure of Shinepukur is to be reconstructed.Journal of Business and Technology (Dhaka) Vol.9(2) 2014; 1-13

scholarly journals Determinants of capital structure in Nepalese commercial banks

2020 ◽  
Vol 1 (1) ◽  
pp. 50-70
Author(s):  
Lalit Prasad Timilsina
Keyword(s):  
Capital Structure ◽  
Commercial Banks ◽  
Influencing Factor ◽  
Correlation Coefficients ◽  
Secondary Data ◽  
Annual Reports ◽  
Return On Assets ◽  
Total Debt ◽  
Specific Factors ◽  
The Capital Structure

This study examines the determinants of capital structure in Nepalese Commercial Banks. The study is based on secondary data of 16 commercial banks with 112 observations for the period 2011/12 to 2017/18. The total debt to total assets and total debt to total equity were selected as dependent variables while return on assets, bank size, assets tangibility, assets growth and liquidity are the independent variables. The data were collected from annual reports of concerned sample bank. The Pearson's correlation coefficients and regression models are estimated to test the significance and impact of bank specific factors on the capital structure of Nepalese commercial banks. The result shows that banks size and assets tangibility are positively correlated with total debt to total assets whereas return on assets, assets growth and liquidity are negatively correlated with total debt to total assets. Likewise return on assets, bank size, assets tangibility, assets growth and liquidity are negatively correlated with total debt to total equity. It indicates that higher assets growth, return on assets and liquidity lower would be the total debt to total assets and total debt to total equity. Likewise higher the bank size and assets tangibility higher would be the total debt to total assets. This study concludes that return on assets, bank size and assets tangibility are the most influencing factors and assets growth and liquidity are the least influencing factor affecting the capital structure of Nepalese commercial banks.

scholarly journals Corporate Liquidity and Profitability Management: A Study on Textile Industry in Bangladesh

2021 ◽  
pp. 27-37
Author(s):  
Kaniz Fatema ◽  
A.K.M. Golam Rabbani Mondal ◽  
Md Amzad Hossain
Keyword(s):  
Textile Industry ◽  
Secondary Data ◽  
Annual Reports ◽  
Liquid Ratio ◽  
Return On Assets ◽  
Current Ratio ◽  
Return On Equity ◽  
Corporate Liquidity ◽  
Independent Variables ◽  
Textile Sector

Purpose: This study aims to identify, whether corporate liquidity has an impact on profitability management concerning the textile sector in Bangladesh. Design: This is a causal study where the dependent variable is profitability, measured by Return on Assets (ROA) and Return on Equity (ROE). For the independent variables, the study adopts the traditional liquidity variables, namely Current Ratio (CR), Liquid Ratio (LR), and Total Cash Ratio (TCR). This study is based on secondary data collected from the annual reports of selected textile companies. Here, multiple regression analysis and descriptive statistics techniques have been used to actualize the research objectives. Findings: The study shows that there is statistically insignificant impact of liquidity on profitability management. It is unlikely that liquidity has influences on profitability management among the textile companies in Bangladesh. Originality/Value: This study has empirically validated the impacts of corporate liquidity on profitability management. Therefore, the research can be helpful for cash management and increasing profitability concerning the textile sector.

scholarly journals ANALISIS PENILAIAN TINGKAT KESEHATAN BANK SYARIAH BERDASARKAN METODE RGEC TAHUN 2012 - 2016

2018 ◽  
Vol 3 (1) ◽  
pp. 12 ◽  
Author(s):  
AHMAD KHUDORI
Keyword(s):  
Corporate Governance ◽  
Secondary Data ◽  
Risk Profile ◽  
Capital Adequacy ◽  
Annual Reports ◽  
Islamic Banking ◽  
Return On Equity ◽  
Good Corporate Governance ◽  
Income Ratio ◽  
Used Car

The purpose of this research is to know the level of health of Islamic banking in Indonesia using RGEC (Risk Profile, Good Corporate Governance, Earnings, and Capital) in the period 2012 – 2016. Research methods used include quantitative and qualitative methods. On quantitative method describes the Risk Profile using NPF financial ratios (Non Performing Financing), and FDR (Financing the Deposit Ratio), using Earnings ratio ROA (return on assets), ROE (return on equity), BOPO (Cost to Income Ratio), and Capital used CAR (Capital Adequacy Ratio). On the qualitative method describes the Good Corporate Governance. Types of data used are secondary data in the form of annual reports and publications reports published on the website that is managed per Islamic banking in Indonesia. The results of the research show that there are some health conditions in Islamic banking by category very healthy is Panin Bank Syariah, healthy category i.e, BCA Bank Syariah, BNI Bank Syariah, BRI Bank Syariah, Bukopin Bank, Mandiri Bank Syariah, Mega Bank Syariah, Muamalat Bank Syariah, and Victoria Bank Syariah. Categories less healthy are MayBank Syariah.

scholarly journals Treasury Single Account (TSA) Implementation and Financial Performance of Commercial Banks in Nigeria

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Benjamin Ezugwu Onodi ◽  
Adanma Sabina Eyisi ◽  
Jane Chinyere Akujor
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Statistical Testing ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variable ◽  
Simple Regression Analysis ◽  
Simple Regression

This work examined the effect of Treasury Single Account (TSA) implementation on the financial performance of commercial banks in Nigeria. The study employed expo-facto survey research design and seven big commercial banks in Nigeria. First Bank of Nigeria, Zenith Bank, Access Bank, UBA, Union Bank, Diamond Bank and Fidelity Bank were judgmentally sampled for this study. Secondary data were gathered through CBN statistical bulletin from 2013 to 2017 (that is two years before and two years after implementation of TSA). Customers deposit was used as proxy for independent variable (Treasury Single Account), while profit after tax, return on equity and return on assets are proxies for dependent variable (financial performance). The data collected were analyzed using comparable mean, while research hypotheses were tested using Simple regression analysis. The findings obtained from the statistical testing of the hypotheses of this study show that customers’ deposit has a significant effect on profit after tax, return on assets and return on equity of commercial banks in Nigeria. The study recommends that Government should create enabling grounds for commercial banks to operate and be profitable to enable investors to have confidence on the economy because banks drive every economy. Commercial banks should increase their customer deposit by engaging in aggressive marketing strategy that will attract private individuals and businesses in order to increase the volume of their liquidity. Merger and acquisition should be encouraged in order to increase the capital base of banks and to make them strong and viable. Also, banks should avoid over-reliance on government deposits and focus more on other banking activities as well as investments that would help in enhancing their performance.

scholarly journals Liquidity Management and Financial Performance: Evidence From Commercial Banks in Botswana

2020 ◽  
Vol 11 (5) ◽  
pp. 399
Author(s):  
C.R. Sathyamoorthi ◽  
Mogotsinyana Mapharing ◽  
Mashoko Dzimiri
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Negative Relationship ◽  
Secondary Data ◽  
Return On Assets ◽  
Liquidity Management ◽  
Policy Makers ◽  
Return On Equity ◽  
Research Population ◽  
The Impact

The study examined the impact of liquidity management on the financial performance of commercial banks in Botswana. The study used Return on Assets and Return on Equity to measure financial performance. Cash and cash equivalents to total assets ratio, Cash to deposits ratio, Loans to deposits ratio, Loans to total assets ratio, Liquid assets to total assets ratio, and Liquid assets to deposits ratio were used as proxies for liquidity management. The research population was all the 9 commercial banks in Botswana and the study covered a period of 9 years from 2011 to 2019. This descriptive study sourced monthly secondary data from Bank of Botswana Financial Statistics database. Descriptive statistics, correlation and regression analyses were applied to analyse the data. The results from regression analysis show statistically significant positive relationships for Loans to total assets ratio and Liquid assets to total assets ratio with return on assets and return on equity. Loans to deposits ratio and Liquid assets to deposits ratio had statistically significant negative relationships with return on assets and return on equity. Cash and cash equivalents to total assets ratio had statistically insignificant positive relationship with return on assets and return on equity whilst cash to deposits ratio had statistically insignificant negative relationship with return on assets and return on equity. Findings suggest that the commercial banks should try to optimize liquidity variables to boost bank performance. The policy makers also, through the Central Bank, should come up with initiatives such as prescribing minimum liquidity requirements that will help banks to stay profitable.

scholarly journals ANALISIS KINERJA KEUANGAN BANK SYARIAH MENGGUNAKAN SHARIA CONFORMITY AND PROFITABILITY (SCnP)

2020 ◽  
Vol 2 (2) ◽  
pp. 134-158
Author(s):  
Ubaidillah Ubaidillah ◽  
Tri Puji Astuti
Keyword(s):  
Commercial Banks ◽  
Profit Sharing ◽  
Profit Margin ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Investment Ratio ◽  
Income Ratio ◽  
Islamic Investment ◽  
Left Quadrant

This study aims to measure the performance of Islamic banks using the SCnP Model. The population of this study is all Islamic commercial banks registered with the OJK from 2017-2019. The sampling technique used purposive sampling, while the data analysis technique was descriptive. The SCnP model has two variables, namely Shariah Conformity with Islamic Income Ratio indicators, Islamic Investment Ratio and Profit Sharing Ratio and Profitability with Return On Assets (ROA), Return On Equity (ROE) and Profit Margin Ratio indicators. The analysis on the SCnP results is that Islamic banks are spread out in four quadrants (ULQ, LLQ, URQ and LRQ) and recommends a sample of research banks, namely subsidiaries of state-owned banks namely Bank Syariah Mandiri, Bank Negara Indonesia Syariah, Bank Rakyat Indonesia Syariah. The results of the study show that for three years, 2017-2019, the results show that Islamic banks are spread out in only two quadrants, namely the Lower Left Quadrant (LLQ) and the Upper Left Quadrant (ULQ).   Keywords: Financial Performance, Islamic Commercial Banks, Shariah Conformity and Profitability (SCnP) Model     Abstrak Penelitian ini bertujuan untuk mengukur kinerja bank syariah dengan menggunakan SCnP Model. Populasi penelitian ini adalah semua bank umum syariah yang terdaftar di OJK dari tahun 2017-2019. Teknik pengambilan sampel menggunakan purposive sampling, sementara teknik analisis data berupa deskriptif. Model SCnP memiliki dua variabel, yaitu Shariah Conformity dengan indikator Islamic Income Ratio, Islamic Investment Ratio dan Profit Sharing Ratio dan Profitability dengan indikator Return On Assets (ROA), Return On Equity (ROE) dan Profit Margin Ratio. Analisis pada hasil SCnP yaitu, bank syariah tersebar dalam empat kuadran (ULQ, LLQ, URQ dan LRQ) dan merekomendasikan sampel bank penelitian yaitu anak perusahaan dari bank BUMN yakni Bank Syariah Mandiri, Bank Negara Indonesia Syariah, Bank Rakyat Indonesia Syariah. Hasil dari penelitian menunjukkan selama tiga tahun yaitu 2017-2019 menunjukkan hasil bahwa bank syariah tersebar dalam dua kuadran saja, yaitu Lower Left Quadrant (LLQ) dan Upper Left Quadrant (ULQ). Kata kunci: Kinerja Keuangan, Bank Umum Syariah, Shariah Conformity and Profitability (SCnP) Model

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