An Analysis on the Financial Performance of Tropical Bank Uganda Limited
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The purpose of this study was to analyze the financial performance of Tropical Bank Limited, identify the causes of poor financial performance and find out possible solutions that can improve on the performance of the bank. The study used both quantitative and descriptive research design. The study used both primary and secondary data. Primary data was collected through use of guided interviews and Secondary data was collected from the annual audited financial statements of Tropical Bank Limited for the last seven years running from 2012 to 2018. The study used profitability measures; return on assets, return on equity and net profit margin as indicators of performance. Data was analyzed quantitatively using Statistical Package Social Sciences (SPSS) version 20 to derive descriptive statistics which included; minimum, maximum, mean and standard deviation. The findings of the study found that the overall bank performance over the seven year period as measured by return on assets, return on equity and net profit margin was declining. The study also found out that the major causes of poor financial performance of the bank were; high volumes of non-performing loans and high increasing operating expenditure. This study concludes by suggesting some recommendations which will boost the bank's profitability such as; adopting a sound and comprehensive credit risk management frame work and continuous innovation in new technology especially in areas of electronic and agency banking.