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International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Assessment of Financial Performance: A Case of some Financial Institutions in Ghana

Mary Ewool, Samuel Owusu Atuahene

http://dx.doi.org/10.6007/IJARBSS/v11-i7/10580

Open access

Ghana is currently undergoing vigorous financial sector restructuring and some financial institutions (FIs) have been closed down or merged due to poor financial performance. The purpose of the study was to assess the financial performance of some financial institutions in Ghana. Return on Assets (ROA) and Return on Equity (ROE) ratios for measuring the financial performance were calculated from secondary data obtained from 15 FIs. The findings of the study revealed that few FIs performed well and made some gains (ROA ratios? 5) in respect to their assets indicating higher net profits ?5 pesewas per every cedi invested while the rest majority, could not make much profits as far as the usage of assets were concerned. Also, most of the FIs had ROEs>0.20 that is >20 pesewas per every cedi invested indicating good returns and higher net profits in terms of shareholders investment. It was recommended from the study that, FIs that had low and negative ROAs and ROEs must look at the management efficiency of their FIs and their income generation as against assets and liabilities acquired. The FIs must evaluate and update their objectives from time to time to meet their goals and targets.

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In-Text Citation: (Ewool & Atuahene, 2021)
To Cite this Article: Ewool, M., & Atuahene, S. O. (2021). Assessment of Financial Performance: A Case of some Financial Institutions in Ghana. International Journal of Academic Research in Business and Social Sciences, 11(7), 1103–1125.