Abstract:
The study examined the financial performance of GCB Bank Limited from 2006 to
2015 using financial ratios and indicators. Annual data from financial reports and
statements were employed from Ghana stock exchange on the internet to compute all
performance indicators and ratios. The major financial ratios that was used to assess
GCB Bank for the period was profitability and efficiency ratios, portfolio quality
ratios, liquidity ratios, capital adequacy ratio. The results showed that GCB Bank was
profitable. GCB Bank was more effective and sound in their use of deposits. The
results further showed that GCB maintained good books in all activities. However,
GCB Bank was sufficient in terms of their minimum capital adequacy ratio of 10%
which was far higher than the legal requirement of banking sector.
Recommendations offered in the study were that the GCB bank should be creative
and innovative in asset and product creation to be able to increase their total income.
The bank should also try and reduce the cost of operations whiles increasing the total
income. GCB bank should have a strong and well-resourced credit risk department
and a loan monitoring and rigorous loan recovery team. Finally, GCB Bank should
keep accurate update on the stock exchange to enable them raise enough capital and
dilute the percentage of government’s shareholding.
Recommendations for further studies and research is to is to use different accounting
ratios to conduct detailed research in other area other than what has been discussed.
Description:
A DISSERTATION IN THE DEPARTMENT OF ACCOUNTING STUDIES
EDUCATION, FACULTY OF BUSINESS EDUCATION, SUBMITTED TO
THE SCHOOL OF GRADUATE STUDIES IN PARTIAL FULFILMENT OF
THE REQUIREMENTS FOR THE AWARD DEGREE OF MASTER OF
BUSINESS ADMINISTRATION (ACCOUNTING) IN THE UNIVERSITY OF
EDUCATION, WINNEBA
