Financial Performance Appraisal of Ecobank Ghana Ltd (2001-2007)
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Date
2008-08-19
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Abstract
This study seeks to appraise the financial performance of Ecobank Ghana Limited between the period 1st January 2001 to 31st December 2007, a seven year period.. The study attempts to initiate a general overview and open discussions on the financial performance of the company with the view to ascertaining the effect of increasing competition and the bank's branch expansion policy on the financial standing of the company. Altman's Z-Score model was applied to explore the financial health status of the company over the seven year period before and after the merger. Further, the researcher used other financial tools and ratios to analyze the financial performance of the company for the period of the study. It was found out that, even in the midst of the intense competition in the banking industry, Ecobank Ghana had still managed to perform creditably with good liquidity, profitability, efficiency and leverage ratios as compared to the industry average. The financial health of the Company as computed using the Z-score also showed the company as being in the non-bankruptcy zone. The bank should embark on an aggressive deposit mobilization drive and try to reduce costs in order to stay on course to be amongst the top three banks in the country.
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A thesis submitted to the KNUST Business School, Kwame Nkrumah University Of Science And Technology in partial fulfillment of the requirements for the degree of Master of Business administration, 2008