Using modern financial indicators to evaluate the financial performance of commercial banks: A BNA case study
Keywords:
financial performance, financial performance evaluation, financial indicators, commercial banks, financial analysis, BNAAbstract
This study seeks to highlight the importance of evaluating the financial performance of commercial banks using modern financial indicators, focusing on the National Bank of Algeria (BNA) during the period 2014–2022. The research employs both descriptive and analytical approaches, which use the Economic Value Added (EVA) and Market Value Added (MVA) indicators to assess the bank’s financial performance. The main findings reveal that the bank has faced periods of weakness and a decline in net profit in certain years. This can be attributed primarily to an increase in provisions for doubtful debts, the repercussions of economic crises, pressure on interest margins, and high operating costs. Additionally, the rise in non-performing loans presents a significant challenge, directly impacting profitability and increasing credit risk ratios. The evaluation of the bank’s performance also underscores inefficiencies in cost management and weaknesses in its technical infrastructure. However, with the implementation of financial reforms and restructuring programs, the bank may experience an improvement in performance, particularly due to the ongoing digital transformations in the sector, which are enhancing electronic services. However, with financial reforms and restructuring programs, the bank may see an improvement in performance, especially with the digital transformations taking place in the sector in general through the enhancement of electronic services.
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