Aib boa dab nib unb web 1 2000 7813 6557 7164 6000

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AIB BOA DAB NIB UNB WEB 1 2000 78.13 65.57 71.64 60.00 57.14 57.78 65.04 2 2001 75.00 80.90 65.42 59.38 59.09 63.33 67.19 3 2002 75.31 81.25 66.96 54.72 70.83 67.74 69.47 4 2003 57.43 76.54 61.19 56.06 61.29 62.69 62.53 5 2004 54.84 78.86 60.94 60.22 58.70 60.00 62.26 6 2005 63.09 69.08 69.23 61.48 50.55 53.33 61.13 7 2006 60.09 75.00 65.94 66.46 56.35 54.55 63.06 8 2007 62.45 75.66 65.98 70.67 63.54 57.81 66.02 9 2008 59.34 72.65 62.69 66.25 61.07 55.35 62.89 10 2009 57.86 68.15 57.54 59.62 60.87 49.47 58.92 11 2010 44.17 55.86 50.05 47.84 49.12 43.72 48.46 12 2011 42.55 60.20 47.06 50.68 53.72 38.64 48.81 13 2012 60.20 68.76 52.02 57.11 62.38 51.98 58.74 14 2013 59.81 68.74 56.19 67.02 66.37 61.51 63.27 15 2014 63.41 61.95 45.70 67.02 68.77 61.74 61.43 16 Average 60.91 70.61 59.90 60.30 59.99 55.98 61.28 17 Rank 2 1 5 3 4 6 Source: Researcher’s Own Computation As exhibited above, BOA is on top position with highest average score of 70.61 followed by AIB and NIB with average scores of 60.91 and 60.30 respectively. WEB is seen to stood last with average score of 55.98. 4.1.4.3 Net Interest Margin (NIM) to Total Assets: NIM (Spread) is the difference between the interest income and the interest expended. It is expressed as percentage of total assets. A higher spread indicates the better earnings given the total assets.
Financial Performance of Private Commercial Banks in Ethiopia: A CAMEL Approach 2016 51 Table-17: Net Interest Margin to Total Assets Ratio S/N Year Net Interest Margin (NIM) to Total Assets (%) Aver. AIB BOA DAB NIB UNB WEB 1 2000 3.95 3.20 3.24 1.27 4.20 2.33 3.03 2 2001 2.98 5.02 3.55 4.17 4.21 3.60 3.92 3 2002 2.88 2.71 2.76 3.56 3.50 3.41 3.14 4 2003 2.28 2.63 2.61 2.94 2.77 2.81 2.67 5 2004 2.15 4.29 2.84 3.29 2.37 4.21 3.19 6 2005 2.70 3.50 3.22 3.41 2.70 3.59 3.19 7 2006 3.01 4.38 3.85 3.65 2.63 3.76 3.55 8 2007 3.99 4.18 3.76 4.03 3.76 3.74 3.91 9 2008 3.01 3.72 3.30 4.05 3.32 3.61 3.50 10 2009 2.43 2.99 2.41 3.70 2.62 2.93 2.85 11 2010 1.86 2.15 1.89 2.96 2.49 3.00 2.39 12 2011 1.83 2.86 1.90 2.99 2.51 2.67 2.46 13 2012 3.22 3.51 2.78 3.41 3.64 3.62 3.36 14 2013 3.55 2.85 2.69 4.22 3.55 3.97 3.47 15 2014 4.22 3.71 2.58 3.59 3.72 3.82 3.61 16 Average 2.94 3.45 2.89 3.42 3.20 3.40 3.22 17 Rank 5 1 6 2 4 3 Source: Researcher’s Own Computation In this parameter, BOA, NIB, and WEB have held the rank from 1 st to 3 rd with average net interest margin ratio of 3.45, 3.42, and 3.40 respectively. DAB scored the last position with average net interest margin of 2.89. Thus, DAB’s NIM is very narrow when compared with its peers. 4.1.4.4 Composite Earning Quality: Based up on the group averages of three indicators of quality of earning NIB, BOA, and WEB held the ranks from 1 st to 3 rd respectively. The last position in the composite earning quality parameter is held by DAB.
Financial Performance of Private Commercial Banks in Ethiopia: A CAMEL Approach 2016 52 Table-18: Composite Earning Quality Bank Net Profit to Total Assets Interest Income to Total Income NIM to Total Assets Group Rank % Rank % Rank % Rank Avg. Rank AIB 2.46 5 60.91 2 2.94 5 4.00 4.5 BOA 2.00 6 70.61 1 3.45 1 2.67 2 DAB 2.62 3 59.90 5 2.89 6 4.67 6 NIB 2.80 1 60.30 3 3.42 2 2.00 1 UNB 2.61 4 59.99 4 3.20 4 4.00 4.5 WEB 2.72 2 55.98 6 3.40 3 3.67 3 Source: Researcher’s Own Computation 4.1.5 Liquidity Liquidity for a bank is a crucial aspect which represents its ability to meet its financial obligation s. It is of utmost important for a bank to maintain correct level liquidity. Hence, Liquid Assets to Total Assets, Liquid Assets to Total Deposits, and Liquid Assets to Demand Deposits are considered. 4.1.5.1 Liquid Assets to Total Assets: This ratio measures the liquidity available to the depositors of a bank. Liquid assets include cash in hand, balance with NBE, balance with other banks (both in Ethiopia and abroad), and money at call and short notice. Total deposits include demand deposits, term deposits and deposits of other financial institutions.
Financial Performance of Private Commercial Banks in Ethiopia: A CAMEL Approach 2016 53

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