Article

Evaluating the Financial Performance of Ethiopian Banks Using Financial Indicators-A Case Study on Dashen Bank

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Abstract

The general objective of this study to evaluating financial performance of a Dashen Bank; to conduct this study only a secondary source of data were used from audited annual financial reports of Dashen Bank from year 2011 to 2015. The collected data analyzed by using different financial statement ratios to indicate that the financial performance the bank. To measure the financial performance of the bank; profitability indicator, leverage indicator, activity indicator and other indicator were used. The findings in this study are in 2015 the bank shows a poor performance as compared to other period (from 2012-2014), the reason is that due to the result 2.9% of return on asset is lowest in 2015 than to other years. The bank is not much loaned up as well as its liquidity is in a good position and amount of current deposits on hand at the same time. Cash deposit ratio indicated that there is an improvement from year to year. Therefore, one can conclude that Dashen Bank was better performing from year to year. Dashen bank shows a poor performance in 2014. The reason is that return on equity of 2015 is 23% which is smallest return on equity while comparing to the others years.

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... In his study he found that, in the operation period 2015 the bank faced with poor performance when it is compared to the previous three periods (from 2012-2014), and the bank was not much loaned up as well as its liquidity is in a good position. In addition to this, the liquidity ratio was improved from year to year [5]. ...
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