Browsing by Author "Esmael Yaregal"

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    The Effect of Branch Expansion on Bank Financial Performance: The Case of Addis International Bank S.C
    (AAU, 2024-02-24) Esmael Yaregal; Amare Abawa (PhD)
    This study is aimed to evaluate branch expansion’s effect on bank’s financial performance in case of Addis International Bank S.C. For this purpose explanatory research design was employed and quantitative approach was used. Branch expansion was measured by number of branches and financial performance of bank was measured by NIM, ROA and ROE. Secondary data was collected from annual reports, yearly magazines, departmental reports and various journals of the bank for a period 2012-2023. The stationary, coitegration, autocorrelation and normality tests were deployed and linear regression is conducted for the purpose of examining the effect of independent variable on each dependent variables. As regression result shows number of branch has insignificant positive effect on ROA while it is significant positive effect on ROE and NIM. In general, the result of this study indicates that branch expansion’s effect on AdIB’s financial performance is significant as well as positive. Based on this, the researcher recommend managers and stakeholders of AdIB to open more branches and the bank’s return on its equity and asset as well as net interest margin will increase. The researcher also recommends other research performers to study branch expansion’s effect on non-financial performance of the bank.