Analyzing the contribution of portfolio management to bank profitability

Abstract

In today’s competitive business environment, a portfolio management process improves the linkage between corporate strategy and the selection of the ‘right’ projects for investment. It also provides focus and aids the most efficient and effective use of available resources. The question then becomes, to what extent is Portfolio evaluation involved in the business industry? Portfolio performance evaluation involves determining periodically how the portfolio performed in terms of not only the return earned, but also the risk experienced by the investor. For portfolio evaluation, appropriate measures of return and risk as well as relevant standards (or benchmarks) are needed. The study herein looks at the results of the analysis carried out on the Ugandan banking sector focusing on portfolio management and profitability of banks. The report is broken down into five (5) parts. Chapter one is the introduction to the study giving a sneak peek into the basis for which the study was made and the direction it is to follow. The next chapter covers the literature review by looking at what scholars have written about the topic. Chapter three and four address the way in which the study was covered and further look at the information collected, how it is presented and its analysis. Chapter five finally details the findings and the conclusion of the study.