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Comparing Financial Performance of State Owned Commercial Bank with Privately Owned Commercial Banks in Ethiopia

European Journal of Business Science and Technology

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Title Comparing Financial Performance of State Owned Commercial Bank with Privately Owned Commercial Banks in Ethiopia
 
Creator Tekatel, Wesen Legessa
Nurebo, Beyene Yosef
 
Description The main objective of this study is to examine the effect of ownership structure on financial performance of Ethiopian commercial banks. Hence, the financial performance of state owned commercial bank was compared with privately owned commercial banks in Ethiopia based on key financial performance measures. In order to achieve the stated objective, the study adopts a quantitative research approach by using financial ratio analysis and test for means equality analysis techniques. Samples of fifteen commercial banks were selected based on the year of establishment. Audited financial statement data covering from 2011 to 2017 analyzed. The result reveal that ROEs of public sector bank was higher than those of private banks but the overall performance of state owned bank was not observed sound because other financial ratios including ROA, LDR, CDR, CAR and NIM, of most of the private banks were found superior. Other findings of the study show that there is a significance difference between the financial performance measures like ROE, CDR, LDR, CAR, EIR and NIM between states owned CBE and the privately owned banks in Ethiopia. In terms of ROA, not statically significant difference between state owned and private commercial banks in Ethiopia over the studied period.
 
Publisher Mendel University in Brno
 
Date 2019-12-23
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier https://journal.ejobsat.cz/index.php/ejobsat/article/view/174
10.11118/ejobsat.v5i2.174
 
Source European Journal of Business Science and Technology; Vol 5 No 2 (2019); pp. 200–217
2694-7161
2336-6494
 
Language eng
 
Relation https://journal.ejobsat.cz/index.php/ejobsat/article/view/174/177
 
Rights Copyright (c) 2019 Wesen Legessa Tekatel, Beyene Yosef Nurebo
http://creativecommons.org/licenses/by-sa/4.0