| Abstract: | This study examines the determinants of financial performance of a private
commercial bank by using the monthly financial statement of Bank ''X''
3
from
2011 to 2016. A quantitative research approach was adopted, and the data
were estimated using the Ordinary Least Square approach of multiple linear
regression model. The study examined only internal factors such as capital
adequacy, loan to deposit ratio, income diversification, operating efficiency,
export, liquidity, loan performance and deposit mobilization as explanatory
variables. Return on Asset, Return on Equity and Net Interest Margin were
used as dependant variables to measure the financial performance of the
Bank. The finding of the study revealed that income diversification, deposit
amount, export level and loan performance have a significant influence on the
financial performance of Bank ''X''. Therefore, it is recommended that
commercial banks should increase export proceed, capital and loan
production, and should diversify the sources of non-interest incomes in order
to improve financial performances, and stay competitive enough in the
banking industry. |
