African Journal of Business Management
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Article Number - 1113AA061783


Vol.10(22), pp. 554-562 , November 2016
DOI: 10.5897/AJBM2016.8058
ISSN: 1993-8233



Full Length Research Paper

Measurement of bank profitability, risk and efficiency: The case of the Commercial Bank of Eritrea and Housing and Commerce Bank of Eritrea



Fitsum Ghebregiorgis*
  • Fitsum Ghebregiorgis*
  • Department of Business Management and Marketing, College of Business and Economics, P. O. Box 3963 Asmara, Eritrea.
  • Google Scholar
Asmerom Atewebrhan
  • Asmerom Atewebrhan
  • Department of Accounting, College of Business and Economics, P. O. Box 3963 Asmara, Eritrea.
  • Google Scholar







 Received: 08 April 2016  Accepted: 11 September 2016  Published: 28 November 2016

Copyright © 2016 Author(s) retain the copyright of this article.
This article is published under the terms of the Creative Commons Attribution License 4.0


This study aims at measuring the profitability, risk, and efficiency of the banking sector in Eritrea. In this study, performance is measured in terms of profits generated, risk, and efficiency. We have employed the major financial ratio analysis to evaluate the performance of the Commercial Bank of Eritrea and the Housing and Commerce Bank of Eritrea. The results obtained indicate that both banks generally are not scoring significant improvement of their respective performances throughout the sample period (1997-2007), as it is indicated by most of the profitability, risk, and efficiency measures. It is obvious that a number of bank specific factors like size, ownership, capital structure, equity, age, and experience significantly affect bank’s performance.

Key words: Bank profitability, risk, and efficiency, commercial banks, and housing and commerce bank, Eritrea.

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APA Ghebregiorgis, F., & Atewebrhan, A. (2016). Measurement of bank profitability, risk and efficiency: The case of the Commercial Bank of Eritrea and Housing and Commerce Bank of Eritrea. African Journal of Business Management, 10(22), 554-562.
Chicago Fitsum Ghebregiorgis and Asmerom Atewebrhan. "Measurement of bank profitability, risk and efficiency: The case of the Commercial Bank of Eritrea and Housing and Commerce Bank of Eritrea." African Journal of Business Management 10, no. 22 (2016): 554-562.
MLA Fitsum Ghebregiorgis and Asmerom Atewebrhan. "Measurement of bank profitability, risk and efficiency: The case of the Commercial Bank of Eritrea and Housing and Commerce Bank of Eritrea." African Journal of Business Management 10.22 (2016): 554-562.
   
DOI 10.5897/AJBM2016.8058
URL http://academicjournals.org/journal/AJBM/article-abstract/1113AA061783

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