Financial Analysis and Decision Making in Selected Commercial Bank in Rwanda: Banque Populaire Du Rwanda Ltd

ABSTRACT This research report entitled ‘Financial Analysis and Decision making of a selected commercial bank in Rwanda, Banque populaire du Rwanda Ltd” is a result of research carried out in BPR. The major objective this research was To examine the extent on how financial ana~ysis can lead to better decision making and improve the liquidity ratio and the respect of financial minimum equilibrium, to verify the level of decisions made from financial analysis if they allowed profitability and efficiency from 2008 to 2011 and to examine the contribution of financial analysis on decision making with reference to tools such as ratios as benchmark for measuring the performance of the firms. In this study, the research design used is analytical method. Analytical allowed analyzing the data in order to identify the problems and get conclusions. BPR is a big bank in Rwandan banking industry; it has saved significant growth, this research findings revealed better performance. The research indicated that the financial evaluation techniques play a vital role in assessing the financial performance of any organisation and this can be the result of good decision and can even lead to better decision making. Hence, gives a base for decision making especially in the areas of financing, investment and asset management. Furthermore, BPR is recommended to evaluate their financial strategy since it is shown by the research that BPR is increasing its external loans facility and this increases the burden of interest on loan to BPR hence, decrease the profitability and efficiency. It has also recommended to BPR to stabilise its capital adequacy ratio as there are key indicators of a better performing banks.