Abstract:
The purpose of this study was to examine the impact of the profitability of banks
before and after covid-19. The study falls within the quantitative research paradigm
and used secondary data. A survey research design was adopted in the study. A total of
Five (5) banks were sampled for this study. Data were analyzed using statistical
software program Statistical Package for the Social Sciences (SPSS) V. 23. The
findings highlighted nuanced shifts in various financial indicators post-COVID-19,
showcasing how the pandemic influenced the dynamics of bank performance.
Notably, the study revealed a significant decrease in the Liquid Funds/Total Deposit
Ratio, indicating a shift in banks' asset allocation away from liquid holdings.
Moreover, the ROE exhibited a widened spectrum post-COVID-19, with a noticeable
decline in average profitability. Before the pandemic, factors like liquid funds/total
deposits, cost-to-income ratio, and net interest margin collectively accounted for
substantial changes in ROE. In the aftermath of the pandemic, there was a marked
shift in influential factors affecting ROE. Liquid funds/total deposits lost significance,
while the cost-to-income ratio and net interest margin emerged as key determinants.
One pivotal recommendation involves creating an environment that incentivizes
financial institutions to bolster their resilience against potential future crises.
Prioritizing strategic cost management stands as a crucial directive for banks in Ghana
to navigate the challenges posed by economic uncertainties and crises like the
COVID-19 pandemic.
Description:
A Dissertation in the Department of Applied Finance and Policy Management,
School of Business, Submitted to the School of
Graduate Studies, in partial fulfilment
of the requirements for the award of the degree of
Master of Business Administration
(Finance)
at the University of Education, Winneba
