Financial Performance Measurement of a Commercial Bank: A Case of Bank of China Hongkong

Authors

  • Sonai Singaram Jeyaraj Guangxi University for Nationalities https://orcid.org/0000-0002-8247-5469
  • M Sumanthi PG & Research Department of Commerce, NMSS Vellaichamy Nadar College

DOI:

https://doi.org/10.52962/ipjaf.2020.4.4.117

Keywords:

Horizontal Analysis, Financial Ratios, Liquidity, Financial Performance, Profitability, Solvency, Vertical Analysis, Financial Crisis

Abstract

This study focuses on measuring the financial performance of Bank of China's profitability, solvency, and liquidity using secondary data for the period from 2008 to 2017. Various techniques such as horizontal, vertical, and ratio analysis are employed to measure financial performance. Statistical tools such as mean, standard deviation, and co-efficiency of variation measure financial data to emphasize the comparative and relative importance of presentation. The study reveals that BOC's horizontal and vertical analysis indicates a variable growth rate of percentage and amount of HK$ due to external and internal operating environmental factors. Ratio analysis reveals that the BOC was conducted in a rational and normal way except 2008, 2012, 2013, and 2015 due to the Lehman brothers' mini-bond issue, Global financial crisis, Backdrop of shrinking international trade, extreme movements in commodity prices (oil prices) and frequent swings in financial markets. Based on the findings, BOC formulates the policies to overcome the factors that would help the investors identify the banking sector's nature and assist in making their investment.

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Published

2020-10-01

How to Cite

Jeyaraj, S. S., & Sumanthi, M. (2020). Financial Performance Measurement of a Commercial Bank: A Case of Bank of China Hongkong. Indian-Pacific Journal of Accounting and Finance, 4(4), 13–27. https://doi.org/10.52962/ipjaf.2020.4.4.117

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Main Section