AN ANALYSIS OF THE FINANCIAL PERFORMANCE OF GCB LTD AND SG–SSB LTD, 2009 – 2011

ABSTRACT

This study analysed the financial performance of Societe Generale-Social Security Bank Limited and Ghana Commercial Bank Limited for the period 2009-2011, using the banks respective financial statements. The study employed the case study design. The sample was Ghana Commercial Bank Limited and Societe Generale-Social Security Bank Limited. These two banks were selected purposively. The data were primarily secondary and quantitative in nature. Both descriptive and inferential statistics were used to analyse the data. In addition, graphs were used to present the data.

When the two banks were compared, Ghana Commercial Bank Limited was found to be more liquid than Societe Generale-Social Security Bank Limited. However, profitability indicators showed that Societe Generale-Social Security Bank Limited utilised its assets better than Ghana Commercial Bank Limited resulting in the bank’s higher scores over the period. The findings show further that Ghana Commercial Bank Limited showed higher ratios for investment in the future while Societe Generale-Social Security Bank Limited showed higher ratios of higher dividend immediately.

However, Societe Generale-Social Security Bank Limited capital adequacy level was far higher than the legal requirement of Banking sector while its counterpart fell slightly below it in terms of average. Based on the main findings and conclusions, it is recommended that Ghana Commercial Bank Limited should find a means of reducing its expenditure, introducing prudent assets management, should be cautious when assisting government in time of economic difficulty, and operate as an independent entity.