MJAMR

The effect of assets management and financial performance of Centenary Bank.

Tumuhimbise Rosette


Abstract

The study aimed at the effect of assets management and financial performance of Centenary Bank. Financial statements for Centenary Bank spanning 2017 to 2021 were obtained from the bank's annual reports and analyzed to extract trend data on key performance indicators like return on assets, return on equity, net interest margins, cost-toincome ratios and non-performing loan levels. Quarterly regulatory prudential returns submitted by Centenary Bank to Bank of Uganda between Q3 2019 to Q2 2022 provided further granular insights. Primary data was collected through a survey of 50 bank managers directly involved in overseeing Centenary Bank's assets deployment and recovery processes across various branches. Descriptive statistics were used to analyze survey data in SPSS while interviews underwent thematic analysis. Pearson's correlation and regression analyses were then conducted to determine significance and direction of relationships between assets management variables and financial performance indicators. From the findings, It was revealed that the bank has maintained adequate business stability through treasury management, corporate treasurers and chief financial officers who have effectively handled their responsibility for overall cash management strategies, cash related responsibilities and stability analysis. It was revealed in an interview session by one respondent that, “Good management of disposals, whether they are scrapping or sales can help minimise losses and even make some profits, hence making a difference in the bank’s profitability”. This means that when the bank chooses the right time to carry out a resale or even optimising the management of obsolescence, the disposal of fixed assets can be a profitability level for the bank. The cash management in the bank should also be upheld as a key financial management practice that ought to enhance the finance independence of the bank.

Keywords

assets management and financial performance
Metropolitan Journal of Academic Multidisciplinary Research

Cite This Article

Tumuhimbise Rosette (2024). The effect of assets management and financial performance of Centenary Bank. Metropolitan Journal of Academic Multidisciplinary Research, 3(1). https://journals.miu.ac.ug/pages/article.php?article_id=1243

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