Cal Bank Performance Analysis
AN EVALUATION OF THE FINANCIAL AND BUSINESS PERFORMANCE OF CAL BANK (GHANA) LIMITED BETWEEN DECEMBER 31, 2005 AND DECEMBER 31, 2007.
1. INTRODUCTION
1.1 The topic chosen
The topic is Evaluation of the financial and business performance of CAL Bank Limited between December 31, 2005 and December 31 2007.
Financial and business performance evaluation involves a critical analysis of a company’s business activities and its financial results. Such analysis helps stakeholders to understand how a business generates value for its shareholders, identified its strength, weaknesses, opportunities and threat.
The main objective of a profit seeking organization is to add value to its shareholders. Therefore an understanding of how a firm is able to harness the available resources to increase the wealth of it owners is important in reaching a conclusion as to whether the business has performed well or not. ‘Value generation in a business is ascribed to many factors including know-how, proprietary technology, good management, brand recognition, brilliant marketing strategy etc, (Stephen H Penman, 2003).
Performance evaluation, especially for financial institutions, also involves some level of risk analysis. ‘For Banks, profitability and shareholder value added will depend on the efficiencies of risk management processes in optimizing the risk-reward trade-off’ (OPPapers.com). The efficiency of risk management as performance indicators in Banks is important because the consequences of failure as a result of poor risk management may have ripple effect on the whole economy of a country. A good example is the current credit crises which is caused by poor risk management in the Banking sector (Student Accountant, October 2008).
Performance evaluation reports provides various stakeholders including the shareholders, potential investors, lenders, government etc, important source of information in taking informed economic decisions.
Financial performance evaluation
1. INTRODUCTION
1.1 The topic chosen
The topic is Evaluation of the financial and business performance of CAL Bank Limited between December 31, 2005 and December 31 2007.
Financial and business performance evaluation involves a critical analysis of a company’s business activities and its financial results. Such analysis helps stakeholders to understand how a business generates value for its shareholders, identified its strength, weaknesses, opportunities and threat.
The main objective of a profit seeking organization is to add value to its shareholders. Therefore an understanding of how a firm is able to harness the available resources to increase the wealth of it owners is important in reaching a conclusion as to whether the business has performed well or not. ‘Value generation in a business is ascribed to many factors including know-how, proprietary technology, good management, brand recognition, brilliant marketing strategy etc, (Stephen H Penman, 2003).
Performance evaluation, especially for financial institutions, also involves some level of risk analysis. ‘For Banks, profitability and shareholder value added will depend on the efficiencies of risk management processes in optimizing the risk-reward trade-off’ (OPPapers.com). The efficiency of risk management as performance indicators in Banks is important because the consequences of failure as a result of poor risk management may have ripple effect on the whole economy of a country. A good example is the current credit crises which is caused by poor risk management in the Banking sector (Student Accountant, October 2008).
Performance evaluation reports provides various stakeholders including the shareholders, potential investors, lenders, government etc, important source of information in taking informed economic decisions.
Financial performance evaluation