Comparative analysis of financial performance of the three state owned banks in Ghana

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The study examined the financial performance of GCB Bank Limited, National Investment Bank Limited (NIB LTD.), and Agricultural Development Bank Limited (ADB) from 2004 to 2014 using financial ratios and indicators. Annual data from financial reports and statements were employed to compute all performance indicators and ratios. The results showed that GCB Bank and ADB were more profitable compared with NIB. All the three banks were more effective and sound in their use of deposits. The results further showed that GCB maintained good books among all the three banks. All the banks were sufficient in terms of their minimum capital adequacy ratio of 10% except NIB which had 8.66% in 2008. Recommendations offered in the study were that the banks should be creative and innovative in asset and product creation to be able to increase their total income. They should also try and reduce their cost of operations whiles increasing their total income. Not all, these banks should have a strong and well-resourced credit risk department and a loan monitoring and rigorous loan recovery team. Finally, ADB and NIB should be listed on Ghana Stock Exchange to enable them raise enough capital and dilute the percentage of the government’s shareholding.
Dissertation sumitted to Kwame Nkrumah University of Science and Technology, College of Humanities and Social Sciences, Department of Economics, in partial fulfillment of the requirement for the award of Master of Science in Economics,