ABSTRACTThe purpose of this study is to examine the effect of Asset-liability management on the profitability of Ghanaian Banks with a focus on Societele General-Social Security Bank Ghana Limited. The approach to this study was a case study in achieving the goal. It used only secondary sources of data obtained …
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ABSTRACTThe purpose of this study is to examine the effect of Asset-liability management on the profitability of Ghanaian Banks with a focus on Societele General-Social Security Bank Ghana Limited. The approach to this study was a case study in achieving the goal. It used only secondary sources of data obtained from the bank’s annual financial statements for twelve-year period (2010-2021) Asset-liability management constituted the independent variable proxied by loans and advances, fixed assets, cash and equivalents, other assets, demand deposits (DD), other short-term funds (OSTF), and total long-term funding (TLTF). The dependent variable was profitability which was measured by ratios including return on assets (ROA) and return on equity (ROE). The data analysis approach employed focused on both descriptive and inferential statistics. The study revealed that asset-liability management have a significant effect on the profitability of the bank. the study revealed increases in both assets and liabilities, all the asset variables, Loans and advances (LA), fixed assets (FA), cash and equivalents (CE), and other assets (AS) were significant predictors for the profitability proxied by ROE and ROA of SG-SSBGH bank. The liability side had only total long term funding (TLTF) being statistically significant predictor for the ROE and ROA in both cases of SG-SSBGH bank, with demand deposits not significant predictors for the dependent variable (ROE and ROA) in both cases. While other short term funds (OSTF) was not significant predictors for (ROE) but significantly predicted (ROA). The study recommends to the board and management of SG-SSBGH Bank Limited to continue to focus on assets and liability management components that have significant effect on the bank profitability. Key words: assets, liability, asset-liability management, profitability, SG-SSBGH, Universal banks, loans and advances.
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