Inflation and The Performance of Banking Institutions in Uganda a Case of Barclays Bank

TABLE OF CONTENTS

DECLARATION

DEDICATION ii

ACKNOWLEGEMENT iii

TABLE OF CONTENTS iv

LIST OF ACRONYMS vii

ABSTRACT Viii

CHAPTER ONE 1

1.0 Introduction 1

1.1 Background of the study 1

1.2 Statement of the problem 8

1.3 Purpose of the study 9

1.4 Specific objectives of the study 9

1.5 Research questions 9

1.6 Scope of the study 9

1.6.1 Time scope 9

1.6.2 Geographical Scope 10

1.6.3 Theoretical Scope 10

1.7 Significance of the study 10

1.8 Operational definition of key words 11

1.8.1 Inflation 11

1.8.2 Performance of banking institutions I 1

1.8.3 Returns on Assets (ROA) 11

1.8.4 Returns on Equity (ROE) 11

1.8.5 Returns on Investment (ROI) 11

1.9 Conceptual Framework 1 1

iv

4.Fkp’f~~— ‘t’/O .13

rER.A~’r1JF1E BEVIB.~~~ .13

.0 Itrid~1~~1)hR .13

.1 (onceP~, ()pinioiiS alid Ideas

~331flation .13

Z.l.2 PerfótIIlmhce 0f~,aiilci1Ig instit~1ti0ui5~

2.1.3 P.etuEflS on Assets (ltOPI) .14

2.1.4 Returns On Bq~uity (OS.)

2 1.5~on [iivestI)i~~ 15

2.2 InflatiOn ilk 3gau1~a 15

2.3 ‘types ofijiflatioii 16

2.4 ‘[lie causes of ixiftation iii ugande 16

2.5 I)efInito~~ ofpenbor1hlance 17

2.6 I..( sures 0f1~ft~hh18h1ce 18

2.7 perspectve ~1~the retationship between inu1ati0~i and petf0t~5~ of ba~~ng

itist_itutions 18

2.8 p.eiationshiP between ~ lati0~~ and ~ 19

2.9 ~studiesIernPiri~~ evidence on inflation ~jjper~orniace ofbanking ins6tutiOfl5~2024

24

3.1 2.4

3.2 I.eseatóli J)esigii 2?4

3.3 Dat~ (~h1e~ on nietliOdS

3.3.!~

3.4 Data processing atid Aiialys15 24

3.4.1 Data 24

3.5.2 25

3.6 I.,iEEhitatbons ofthe st~id~~ 2.5

V.

V

CHAPTER FOUR .26

DATA PRESENTATION, ANALYSIS AND INTERPRETATION 26

4.1 Introduction 26

4.2 Descriptive Analysis 26

4.3 Trend of Inflation in Uganda 27

4.4 Measures of Financial performance of Barclays Bank 29

4.5 Inflation and financial performance of Barclays bank Uganda 31

CHAPTER FIVE 36

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATIONS 36

5.0 Introduction 36

5.1 Discussions 36

5.1.1 The inflation trend of Uganda 36

5.1.2 Financial performance of Barclays Bank 37

5.1.3 Inflation and financial performance of Barclays Bank 38

5.2 Summary of the Findings 39

5.3 Conclusions 40

5.4 Recommendations 40

5.5 Further studies 41

References 42

APPENDICES 45

APPENDIX A: RESEARCH TIME FRAME 45

APPENDIX B: DATA USED 46

ABSTRACT This study was adopted to analyze the effect of inflation on the financial performance of banking institutions especially Barclays Bank Uganda. The study was guided by three objectives; (i) to examine the trend of inflation in Uganda (ii) to assess the financial performance of Barclays Bank Uganda and (iii) to analyze the relationship between inflation and financial performance of banking institutions. The study applied a quantitative research approach mainly descriptive correlational research design. Secondary data for a period of 18 years (2000-2017) was used concerning the study variables. The data was collected following the Data mining technique and analyzed using SPSS statistical package. The findings of study were presented in form of descriptive statistics such as means, minimum, maximum, standard deviations, time series graphs, Pearson’s linear correlation coefficient and linear regression analyses. According to the findings of the study, it was indicated that there has been an increasing trend in the rate of inflation in Uganda. Also the findings revealed that there has been a decreasing trend in the returns on investment, a constant trend in the returns on assets and an increasing trend in the shareholder’s equity of Barclay Bank. It was also ii~dicated that there is a weak positive and insignificant relationship between inflation and returns on assets (r = 0.368, p 0.133). It was revealed that inflation does not have a significant effect on shareholder’s equity (p. value 0.892). Similarly, it was found out that the effect Of inflation on returns on investment was weak, negative and insignificant (r -0.3 16, p =0.20 1). The study thus concludes that inflation has no effect on performance of Banking Institutions. Therefore the study recommends that the Banking Institutions should target other economic factors that affect financial performance such as stock prices and interest rates.

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APA

DORCAS, O (2022). Inflation and The Performance of Banking Institutions in Uganda a Case of Barclays Bank. Afribary. Retrieved from https://afribary.com/works/inflation-and-the-performance-of-banking-institutions-in-uganda-a-case-of-barclays-bank

MLA 8th

DORCAS, OPIDING "Inflation and The Performance of Banking Institutions in Uganda a Case of Barclays Bank" Afribary. Afribary, 20 Aug. 2022, https://afribary.com/works/inflation-and-the-performance-of-banking-institutions-in-uganda-a-case-of-barclays-bank. Accessed 23 Nov. 2024.

MLA7

DORCAS, OPIDING . "Inflation and The Performance of Banking Institutions in Uganda a Case of Barclays Bank". Afribary, Afribary, 20 Aug. 2022. Web. 23 Nov. 2024. < https://afribary.com/works/inflation-and-the-performance-of-banking-institutions-in-uganda-a-case-of-barclays-bank >.

Chicago

DORCAS, OPIDING . "Inflation and The Performance of Banking Institutions in Uganda a Case of Barclays Bank" Afribary (2022). Accessed November 23, 2024. https://afribary.com/works/inflation-and-the-performance-of-banking-institutions-in-uganda-a-case-of-barclays-bank