DETERMINANTS OF FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AT NSE IN KENYA

2020 ◽  
Vol 5 (2) ◽  
pp. 66
Author(s):  
Kenneth Njihia Ndungu ◽  
Joshua Bosire
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Interest Rates ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Strong Positive Correlation ◽  
Real Estate Finance ◽  
Funds Allocation ◽  
Real Estate Financing

Purpose: The purpose of this study was to establish the determinants of financial performance of NSE listed commercial banks in Kenya. Methodology: A descriptive study design attributed to a census approach aiming at the eleven listed commercial banks in Kenya was applied. The research relied on secondary data obtained from the audited financial statements of the said banks to create the correlation between the research variables. The information on the financial effecting of the listed banks was collected using a data collection matrix. The data was analyzed by the assistance of SPSS and the outcome presented in tables using statistical aspects, which include means and standard deviations. Results: The study established that government securities (r = 0.680) had a positive and strong correlation with financial performance. Similarly, Real estate (r = 0.738), Loans (r = 0.922) and, stocks (r=.469) had a positive and weak correlation with financial performance. The findings of study show loans (p=0.000) was most significant, followed by funds allocated to Government securities at p=0.149 then by funds allocated to stocks (p=.850) and least significant was real estate financing at p=0.972 at 95% confidence level.  The findings show that there was a strong positive correlation (r=0.926) between Funds allocation and financial performance of commercial banks, according to the findings, 85.7% of financial performance of commercial banks could be attributed to the funds allocation to various assets. Adding another variable say, x5 will lower the strength of the model from 85.7 % to 84.6 %.  Unique contribution to theory, practice and policy: The study recommends that listed commercial banks should diversify their real estate finance schemes to make it reachable to more customers since real estate had a significant effect of their financial performance. A study should be conducted on other variables such as inflation, exchange rates and interest rates fluctuations. A study should also be conducted to investigate the low yield of investment in loans in contrast to investment in government securities

Influence of Islamic Auto Financing Instruments on Financial Performance of Commercial Banks in Isiolo County Kenya

2021 ◽  
Vol 6 (1) ◽  
pp. 70-85
Author(s):  
Abdi Huka Halake ◽  
Dr. Nancy Rintari ◽  
Fredrick Mutea
Keyword(s):  
Financial Performance ◽  
Customer Service ◽  
Commercial Banks ◽  
Secondary Data ◽  
Unique Contribution ◽  
Validity And Reliability ◽  
Policy And Practice ◽  
Loan Officer ◽  
Loan Officers ◽  
Isiolo County

Purpose: The purpose of the study was to explore the influence of Islamic auto financing instruments on financial performance of commercial banks in Isiolo County Kenya. Methodology: This study used descriptive research design. The respondents were customer service officers and loan officers in the ten commercial banks in Isiolo County. They were be selected using census method. Data collection was done using closed-ended questionnaires and secondary data collected through analysis of report from 2017 to 2020. To ensure validity and reliability, pre-testing of questionnaires was done at Kenya Commercial Bank in Meru town. Coded data in SPSS 24.0 computer program analyzed quantitative and qualitative data using the descriptive statistics such as mean, percentage and standard deviation. Multiple regression was used to test hypothesis of the study. Tables, graphs and detailed explanations were used to present the final results of the study. Results: Options had a statistically significant relationship with financial performance. The respondents agreed that the lending terms of Islamic automobile financing have attracted diverse clients (mean of 4.78). However, in comparison with other statements, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans (mean of 3.83). The R value was 0.862 and R-square of 0.743. This indicated that Islamic auto financing instruments’ level of contribution towards financial performance was 74.3%. The Durbin- Watson value was 1.969. This value lied between 0 and 2 hence indicating that there was a positive correlation between auto financing instruments and financial performance. The significance value was 0.000 which was below 0.05 hence Islamic Auto financing instruments had a significant influence of financial performance. In addition, the respondents did not tally that having sharia committee in disbursing car loans had enabled clients have confidence with the automobile loans. This proved that the confidence that clients had on auto financing, was not purely on the nature and process of administration of the financing but also due to reliability. Unique contribution to theory, policy and practice: The study recommends that auto financing should be provided reliably by ensuring all client concerned are amicably handled by the banking staff. The various car loan officer should be trained on good customer service to as to ensure they sell well their products without necessarily losing new clients. The bank management should also diversify auto financing to cater for all categories of vehicles for expansion of their client base.

scholarly journals INFLUENCE OF BANK STABILITY ON THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN SOUTH SUDAN

2019 ◽  
Vol 4 (1) ◽  
pp. 20
Author(s):  
Bak Barnaba Chol ◽  
Dr. Elizabeth Kalunda Nthambi ◽  
Dr. Joseph Kamau
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
South Sudan ◽  
Secondary Data ◽  
Primary Data ◽  
Local Market ◽  
Unique Contribution ◽  
Bank Stability ◽  
Asset Quality ◽  
Positive Effect

Purpose: The purpose of the study was to examine the influence of bank stability on the financial performance of commercial banks in South SudanMethodology: The study was guided by the CAMEL model metrics in measuring stability and its influence on the financial performance of commercial banks measured by ROA and ROE. The study was primarily grounded on the CAMEL model. The study further adopted the positivism philosophy which guided the research. The research employed a descriptive research design. The population for the study was 24 commercial banks in south Sudan from which the research targeted one senior manager. The research relied on a mixed methodology which encompassed both quantitative and qualitative data. Secondary data was collected for the period 2012-2017 from audited annual financial reports of individual banks and from the Central Bank of South Sudan reports while primary data was collected by use of a semi-structured questionnaire. The collected data into SPSS 23 for subsequent descriptive and inferential statistical analysis.Results: The correlation tests indicated a strong positive effect of asset quality on the financial performance of commercial banks ( r=0 .784); a strong positive effect of management efficiency (r= 0.758) and liquidity (r=0 .620).Unique contribution to theory, practice and policy: The study recommends that at the bare minimum the management of commercial banks should benchmark with industry experts on how to enhance their services and product offering to better their asset quality scores. Further the study recommends that banking institutions that have shied away from lending activities should reconsider the potential benefits that may accrue from undertaking lending activities. The study therefore recommends that banks should be encouraged to look beyond local market and strategically expand their operations to other geographical markets and sectors of the economy. Location of bank branches is strategically paramount if banks must maximize return on investment.

scholarly journals ELECTRONIC BANKING ADOPTION AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA, NAIROBI CITY COUNTY

2019 ◽  
Vol 4 (2) ◽  
pp. 19
Author(s):  
Priscah Jepchumba ◽  
Dr.Eddie Simiyu
Keyword(s):  
Financial Performance ◽  
Commercial Banks ◽  
Secondary Data ◽  
Target Population ◽  
Primary Data ◽  
Unique Contribution ◽  
Electronic Banking ◽  
Descriptive Research ◽  
General Managers ◽  
Positive Effect

ELECTRONIC BANKING ADOPTION AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN KENYA, NAIROBI CITY COUNTY   1*Priscah Jepchumba 1Post Graduate Student: Kenyatta University *Corresponding Author’s Email: [email protected] 2 Dr.Eddie Simiyu Lecturer: Kenyatta University   Abstract Purpose: This research was done to establish how e- banking adoption has improved the financial performance of commercial banks in Kenya. Methods: The study used descriptive research design and structured questionnaires to collect data.The target population was all the 41 commercial banks in Nairobi. The sampling design was census where general managers and credit managers were targeted in Nairobi headquarters. The source of data was primary and secondary data; Primary data was collected from source through questionnaires while secondary data was sourced from annual central bank reports, bank financial statements as well as periodical journals and reports. Results: The findings of the study has indicated that most of the respondents had served the banking industry for a period of at least five years and education level of at least a college diploma.  The study also rejected all the null hypotheses and concluded that electronic banking has positive effect on financial performance of commercial banks.  The study has contributed to knowledge through provision of scholarly literature on electronic banking and financial performance of commercial banks in Kenya. Unique Contribution to Theory, Practice and Policy: The study’s recommendation to management is to implement strategies which: increase Speed in Electronic Services, increase investments in Electronic banking,  promote training programs to employees and adopt suitable techniques to reduce  threats to e-banking.  The study’s recommendation is that a similar research should be conducted with a moderating or mediating variable in the same industry.

scholarly journals Financing affordable housing in Niger State of Nigeria through commercial banks : trend, issues and future directions

2011 ◽  
Vol 8 (1) ◽  
pp. 85
Author(s):  
Bassey Udoekanem Namnso
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Affordable Housing ◽  
Low Income ◽  
Commercial Banks ◽  
Secondary Data ◽  
Housing Finance ◽  
Primary Data ◽  
National Bureau ◽  
Property Market

This study explored the trend in interest rates on real estate loans granted by commercial banks in Nigeria. Primary data used for the study were collected from selected real estate firms in Minna, the capital of Niger State of Nigeria, which are active in the residential property market in the city. The secondary data were obtained from the Central Bank of Nigeria (CBN) and the National Bureau of Statistics (NBS). Results of data analysis revealed that variation in interest rates on real estate loans granted by commercial banks in Nigeria in the past three years was statistically significant at 0.05 level ofsignificance, an indication that interest rates on real estate loans granted by commercial banks in the country did not follow a similar trend. The paper examined the implications ofthis trend on affordable housing finance in Niger State of Nigeria and argues that more than 90 per cent of the households in Niger State could not afford real estate loans granted by commercial banks for housing development and acquisition in the area at the current interest rates. The paper concluded that greater involvement ofthe government at all levels in the provision of long-term real estate credit at affordable interest rates is necessary if housing finance to be made affordable for the low-income groups in Niger State, Nigeria.

scholarly journals THE EFFECT OF PORTFOLIO SIZE ON THE FINANCIAL PERFORMANCE OF PORTFOLIOS OF INVESTMENT FIRMS IN KENYA

2016 ◽  
Vol 1 (2) ◽  
pp. 77
Author(s):  
MBOGO PETER KIMANI ◽  
DR. JOSIAH ADUDA
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Secondary Data ◽  
Money Market ◽  
Optimal Portfolio ◽  
Survey Study ◽  
Unique Contribution ◽  
Money Market Funds ◽  
Portfolio Size ◽  
Descriptive Survey

Purpose The purpose of this study was to determine the effect of portfolio size on the financial performance of portfolios of investment firms in Kenya. Methodology: The research design adopted a descriptive survey study. This implied that the total population of this study is 90 firms as given by the Kenya Association of Investment Groups (KAIG). For representativeness purposes, the current study took a sample size of 50% of the population. This was 45 firms.  The study used secondary data from the financial statements of the investments firms. The selected period was 5 years. The researcher used frequencies, averages and percentages in this study. The researcher used Statistical Package for Social Sciences (SPSS) to generate the descriptive statistics and also to generate inferential results. Regression analysis was used to demonstrate the relationship between the portfolio size and the performance of investment firms.Results: The finding reveal that investments firms in Kenya had put the biggest allocation of funds in stocks, followed by real estate portfolio and the least holding was in bond and money market funds.  The findings also reveal that that the stocks portfolio generated the highest returns followed by bond and money market returns while real estate portfolio generated the least returns. Unique contribution to theory, practice and policy: It was recommended that investment managers should consider increasing the number of stocks from the current average of 13 stocks to between 16 to 20 stocks.  Such a portfolio size would be optimal since approximately 91% of risk would have been diversified. This will solve the question in mind of investment managers which has been as to how many individual stocks or investments are needed to compose an optimal portfolio. An optimal portfolio is preferred over a maximized portfolio due to the risk return tradeoff.

Analisis Kinerja Keuangan Bank Umum Syariah Melalui Pendekatan Islamicity Performance Index

2021 ◽  
Vol 7 (2) ◽  
Author(s):  
Safaah Restuning Hayati ◽  
Mutiah Hanifah Ramadhani
Keyword(s):  
Financial Performance ◽  
Commercial Bank ◽  
Performance Index ◽  
Commercial Banks ◽  
Secondary Data ◽  
Sampling Technique ◽  
Descriptive Research ◽  
Index Approach ◽  
Principles Of Justice ◽  
Quantitative Descriptive

This study aims to determine how the financial performance of Islamic commercial banks in Indonesia through the islamicity performance index approach for the period 2013-2017, by the principles of justice, halalness, and purification. This study using quantitative descriptive research. The number of banks sampled are five Islamic commercial banks in Indonesia that have been selected, through a purposive sampling technique first. These banks are BRI Syariah, BNI Syariah, Mandiri Syariah, BCA Syariah, and Victoria Syariah. The type of data used is secondary data taken from the financial statements of each islamic commercial bank that is sampled. Through the islamicity performance index approach, the results of this study indicate that the financial performance of islamic commercial bank is unsatisfactory, based on the average of the variables that have been processed in accordance with predicate valuation standards.

THE EFFECT OF THE SHARIA SUPERVISORY BOARD AND THE BOARD OF COMMISSIONERS ON THE FINANCIAL PERFORMANCE OF SHARIA COMMERCIAL BANKS IN INDONESIA

2021 ◽  
Vol 3 (1) ◽  
pp. 60-73
Author(s):  
Ahmad Fauzul Hakim Hasibuan ◽  
Fuadi Fuadi ◽  
Angga Syahputra
Keyword(s):  
Data Analysis ◽  
Financial Performance ◽  
Commercial Banks ◽  
Supervisory Board ◽  
Secondary Data ◽  
Sampling Technique ◽  
Islamic Banks ◽  
Purposive Sampling ◽  
Islamic Bank

This study aims to determine the influence of the Sharia Supervisory Board and the Board of Commissioners on the Financial Performance of Islamic Banks in Indonesia. This study used secondary data from 12 banks.The sampling technique used is the purposive sampling technique. The method of data analysis used is multiple linear regression.The results partially show that the sharia supervisory board and board of commissioners positively and significantly influence the financial performance of Islamic banks in Indonesia. Simultaneously,the board of commissioners and the sharia supervisory board positively and significantly influence the financial performance of Islamic bank

scholarly journals Savings Level Determinants and Sustainability of Commercial Banks in Rwanda: A Case of I&M Bank Rwanda

2022 ◽  
Vol 6 (1) ◽  
pp. 10-27
Author(s):  
Aimable Nshimiyimana ◽  
◽  
Eugenia Nkechi Irechukwu ◽  
Keyword(s):  
Interest Rates ◽  
Commercial Banks ◽  
Financial Institution ◽  
Secondary Data ◽  
Income Level ◽  
Access To Credit ◽  
Credit Score ◽  
Descriptive Research ◽  
Specific Objective ◽  
Finance Department

The purpose of this study was to investigate the effect of savings level determinant on sustainability in I&M Rwanda. The specific objectives were to establish the effect of interest rate, income level and access to credit on the sustainability of I&M Bank. This study implemented a descriptive research design and utilized coefficient of correlation to assess the effect of each specific objective on the sustainability of the Bank. The population comprised of 12,057 including 12,050 customers and 7 staff of finance department of I&M Bank Rwanda. A sample size of 99 was calculated using Yamane (1967) simplified formula. To accomplish this aim, both primary and secondary data are used. The researcher used simple random and purposive sampling techniques. A questionnaire and interview have used to collect data. Quantitative data was obtained using questionnaire while a financial statement of I&M Bank covering 2016-2020 was used as secondary data. Descriptive and inferential statistical analysis showing mean, standard deviation, correlation and regression was used statistical Package for Social Sciences (SPSS) version 26.0 to analyze statistical information while content analysis used to analyze qualitative information. The findings and recommendations for this study addressed to the I & M Bank Rwanda, for decision-making and policies. The study found that interest rates, income level and access to credit have significant positive effect on sustainability of commercial banks in Rwanda at 78%, 90.5% and 92.9% respectively. The relationship among saving level determinants and sustainability of business bank was also determined to be linear with increase in get admission to credit score by means of clients. The researcher concluded that saving degree and get admission to credit volatility had more effect on sustainability of banks. The study endorsed that guideline to be installed vicinity to boom financial institution lending and ensure monitoring the same. Keywords: Savings Level Determinant, Sustainability, Commercial Banks, I&M Bank, Rwanda

scholarly journals Pengaruh Kepemilikan Asing , Leverage, Cash Holdings Dan Debt Maturity Terhadap Kinerja Keuangan Perusahaan

2020 ◽  
Vol 2 (3) ◽  
pp. 2893-2911
Author(s):  
Murti Sari Dewi ◽  
Erly Mulyani
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Sampling Method ◽  
Stock Exchange ◽  
Cash Holdings ◽  
Secondary Data ◽  
Foreign Ownership ◽  
Debt Maturity ◽  
Panel Regression ◽  
Cash Holding

This study aims to examine the effect of foreign ownership, leverage, cash holding and debt maturity on financial performance in property and real estate companies listed on the Indonesia stock exchange (idx) in the period 2014-2018. This study is categorized as causative research. The population in this study are property and real estate companies listed on the Indonesia stock exchange (idx) in the period 2014-2018. By using purposive sampling method, there were 24 companies as the research’s sample. The type of data used is secondary data and used is panel regression analysis. The results of this study indicate that foreign ownership, cash holding and debt maturity has no significant effect on financial performance, only leverage has significant effect on financial performance

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