ビジネス＆財務ジャーナル

The Effect of Bank Specific Factors on the Performance of Afriland First Bank in Cameroon

Abstract

Mbella ME and Magloire AA

This study was out to examine the extent to which bank-specific factors affect the performance of Afriland First Bank. The key internal drivers of Afriland First Bank’s profitability identified in this research were: capital adequacy, liquidity management, management efficiency and asset quality. Afriland First Bank was selected out of fourteen commercial banks because during the period of study, it was the only local bank among the top commercial banks in terms of market shares in Cameroon. The researcher extracted data from the consolidated financial statements of Afriland First Bank from the period 2009 to 2016 inclusive. With the help of Generalised Methods of Moments, the result showed that capital adequacy, liquidity management and Asset Quality were found to have a significant negative effect on Return on Assets, meanwhile Management Efficiency was found to have significant positive effect on Return on Asset of Afriland First Bank during the period of study. The humble recommendation made to Afriland First Bank is to avoid very risky investments in the future.