AN ANALYSIS OF FINANCIAL STATEMENTS AS A MEASURE OF PERFORMANCE AND EFFICIENCY IN BANKING SECTOR
|BANKING AND FINANCE|
No of pages
|MS Word & PDF|
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The organization strength of any enterprises could be properly access only from its financial position as it shall be reflect in the account data.
The important of corporate financial reporting view of developing in the money market and capital market cannot be over emphases.
Financial, statement analysis is the process of identifying the financial strength and weakness of the balance sheet and profit and loss account.
However, accounting information gives the summary of the economic performance and the situation of a business enterprise as well as it profitability.
They also review how the provision of their resources has been effectively utilized.
The use of the information provided is virtually of modern society.
Decision take on the basis of such information affect the millions of people all over the world with ever increasing number of user whose interest are becoming more and more diverse, the need for proper understanding of such financial statement cannot be over emphasis.
In order to arrive at a right conclusion, it is imperative that the account regaled a time fear review.
Corporate reporting service as an effective means of communicating financial statement and other data by companies of shareholder, prospective investor, government authority and general public.
Annual report and accounts are the cost significant single communication of economic and financial information to the shareholders and other interested group.
Annual report and accounts are therefore central to corporate reporting in order for the users of this annual reports and account to make use of its, there is need to further analysis the information contained in the financial statement .
The income statement and balance sheet can be of great benefit to some of the users when properly analyzed.
One of the most important functions of financial accounting is to report information to external parties.
The set of people who do not take part in the day to day management of the business
Such as the creditor, shareholders, investors, bankers are individual and organization that finance the firms operation.
Finally, each of these parties has an interest in analyzing and interpreting one or more broad area of business, especially its financial soundness and stabilized the efficiency of its management as well as future prospect for investors.
1.2 STATEMENT OF PROBLEM.
The statement of problem are comprise of the following
i. Ratio of the case study does not have meaning except is compared with same standard
ii. The interpretation of ratio rendered invalid as a result of change in the value of money.
iii. The difference in definition of items in the
Balance sheet and income statement make the interpretation of ratio different.
iv. The ratio calculated at a point in time are less informative and effective as they suffer short term changes.
v. the wide range of the bank operation have make it difficult to develop a meaningful set of industry average for comparism.
1.3 RESEARCH QUESTION
i. Does ratio analysis have any effect on the performance of banks?
ii. What are the significant roles of financial statement and balance sheet of the case study?
iii. How does the bank control the risk of illiquidity?
1.4 OBJECTIVE OF THE STUDY.
Financial statement analysis provides a method for assessing the financial strength and weakness of all enterprises using information found in its financial statement.
The annual report and account, the objective of this analysis is to gain and understanding of the firm’s current financial condition as well as its nature prospects which in turn can serve as the basis for decision making in the same light of the above objective of financial statement analysis the objective of the research work in the second folds are:
i. To determine the efficiency of the management Of first bank plc.
ii. To accomplish this objective financial ratio that measure efficiency of an enterprises such as gross profit margin net profit margin return on total asset and net asset and other necessary ratio would be identified calculate for period of one year.
iii. to analysis the role of first bank of Nigeria of the proffered sector of the economy such as industry and agriculture.
iv. To appraise first bank contribution to the economic development
V. To analysis some of the problems confronting the first bank of Nigeria in the cases of carrying out their services.
vi. To make recommendation based on the finding of the study.