Effect of Strategic Plan on Financial Performance of Commercial Banks in Rwanda A Case of BPR Bank Rwanda PLC Headquarter. Period: 2018-2022

The main purpose of this study is to find out effect of strategic planning on financial performance of commercial banks in Rwanda by taking case study of BPR Bank Rwanda Plc. The specific objectives were to analyze the effectiveness of the strategic planning prepared by BPR Bank Rwanda Plc ; to assess the profitability of BPR Bank Rwanda Plc; to evaluate the relationship between strategic planning of BPR Bank Rwanda Plc and financial performance. the researcher applied descriptive and regressions as research design. Descriptive research was used to obtain information concerning the current status of the phenomena and to describe what exists with respect to variables or conditions in a certain situation. Inferential analysis was used to determine the relationship between independent variable (strategic planning) and dependent variable (financial performance) by using data collected from BPR Bank Rwanda Plc. In reference to the first specific objective, in terms of goal setting, the findings revealed that the goal setting is well implemented in BPR Bank Rwanda Plc since the average mean is 3.92 interpreted as very high mean. Concerning generic strategies in BPR Bank Rwanda Plc, the grand mean shows that generic strategy is effective since it is equal to 3.88 interpreted as high mean. In terms of strategic formulation, the strategy formulations applied by BPR Bank Rwanda Plc were appreciated by respondents by considering the average mean of 3.62 interpreted as high mean. Concerning, strategy implementation , findings revealed that the strategy implementation is applied in in BPR Bank Rwanda Plc since the grand mean is 3.73 interpreted as high mean. Concerning monitoring and evaluation, the average mean shows that the level of monitoring and evaluation is not well appreciated since the average mean was 2.62 interpreted as moderate mean. Findings on second specific objective , the findings shows that a ROA in 2019 was 1.21%, in 2020 has been decreased up to 0.94% , in 2021 ROA has been increased up to 1.14% and in 2022 , ROA has been increased up to 2, 9% . In 2019 ROE was 9.34%, in 2020 ROE has been decreased to 7.97%, in 021 ROE has been increased up to 8.64% while in2022 has been increased up to 18.5% . In 2019 NPM was 12.1% , in 2020 NPM has been decreased up to 11.3%, in 2021 NPM has been increased up to 11.5% while in 2022 NPM has been increased up to 27.7. Findings on third specific objective, the study found out that by holding all the variables constant, profitability e will be at 3.168. A unit increase in Goal setting as strategic planning when holding all the other variables constant, profitability would be at 0. 542. A unit increase in Generic strategies strategic planning when holding all the other variables constant, profitability would be at 0. 158 A unit increase in Strategy Formulation while holding other factors constant, profitability of the banks would increase by 0. 575. A unit improvement in Strategy Implementation while holding other factors constant, profitability would be at 0.15. A unit increase in Monitoring and evaluation. Among the commercial banks while other factors are held constant, profitability of the firms would be at 0. 276. Based on findings where the respondents revealed that most of employees do not work hard in trying to meet the goals and objectives by considering he mean of 2.00 interpreted as low mean. We therefore suggest the following recommendations: It is suggested that strategic planning should be properly instituted and robust implementation of the various steps in order to enhance high profit performance of the selected commercial banks.