An Evaluation of Financial Performance of Commercial Banks

International Journal of Applied Business and Economic Research, November, 2017, Vol. 15, No. 22, pp. 605-618.

Posted: 3 Jan 2020

See all articles by Prakash Pinto

Prakash Pinto

affiliation not provided to SSRN

Iqbal Thonse Hawaldar

Kingdom University

Habeebur Rahiman

Kingdom University BAhrain

Rajesha T.M.

affiliation not provided to SSRN

Adel Sarea

Ahlia University

Date Written: November 25, 2017

Abstract

Banks are one of the important players in the financial system in any economy. This study evaluate the financial performance of commercial banks in Bahrain. This study is based on eight commercial banks for the period from 2005 to 2015. The data used in this study are obtained from published annual reports and websites of the respective banks, investor’s guide, newspaper, newsletters of the banks and from Central Bank of Bahrain website. We used regression, correlation analysis & t-tests to determine the relationship between different financial parameters. The results of the study indicate that the profitability has an impact on capital adequacy and financial leverage, whereas the study did not ratify the relationship between the profitability and efficiency of the banks. This study also reveals that enforcement of higher capital adequacy ratio will adversely affects the profitability of the banks. The impact of financial and oil crisis might have influenced the financial leverage of the banks there by resulted in an adverse effect on the profitability of the banks.

Keywords: banks, financial performance, performance analysis, ratios

JEL Classification: G10, G14, G15

Suggested Citation

Pinto, Prakash and Hawaldar, Iqbal Thonse and Rahiman, Habeebur and T.M., Rajesha and Sarea, Adel, An Evaluation of Financial Performance of Commercial Banks (November 25, 2017). International Journal of Applied Business and Economic Research, November, 2017, Vol. 15, No. 22, pp. 605-618. , Available at SSRN: https://ssrn.com/abstract=3504502

Prakash Pinto

affiliation not provided to SSRN

Iqbal Thonse Hawaldar (Contact Author)

Kingdom University ( email )

Sanad
Bahrain

Habeebur Rahiman

Kingdom University BAhrain ( email )

College of Business Administration
Sanad
Bahrain

Rajesha T.M.

affiliation not provided to SSRN

Adel Sarea

Ahlia University ( email )

P.O. Box 10878
Manama
Bahrain

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