Financial Performance Analysis: A Comparative Analysis

Abstract

This study was aimed at measuring the financial performance of some selected public and private banks in Nepal from 2011 to 2020. The financial performance of selected banks has been measured by using the four important components of financial measures; those are capital adequacy, asset quality, management capacity and liquidity of banks. The collected secondary data have been analyzed by using a ratio analysis model. In line with comparison of selected private banks and public banks each other, the study revealed the following results. A quantitative method is used for this research with four companies as research object, measured by purposive sampling techniques. The descriptive, correlational and regression has been employed in this study. Bank Performance was taken as dependent variables and whereas Capital Adequacy (CA), Assets Quality (AQ), Management Efficiency (ME) and Liquidity Management (LM) were independent variables. The data were collected from the Banking and Financial Statistics and Supervision Report published by Nepal Rastra Bank, and annual reports of selected banks. The regression models were estimated to test the effect of bank specific variables on performance of Nepalese financial institutions. The study recommended that the public and private banks board of directors, chief executive officer and marketing officer, stakeholders are taken carefully decision about capital adequacy, assets quality, management efficiency, liquidity management variable to increase the performance of bank.