Ratio Analysis of Zenith Bank Ghana Essay

4390 Words Nov 2nd, 2013 18 Pages
PART ONE
1.0 Introduction
Part one provides a background to the study by giving a brief review to the topic. The section also gives the reason for my decision to analyze the financial performance of Zenith. The section concludes with the aim and objectives of the research paper.

1.1 Reasons for choosing Zenith Bank
There are three main reasons for choosing to analyze the financial performance of Zenith. The banking industry is a competitive one and the topic will therefore afford me the opportunity to see at play strategic planning, efficient and effective management strategies and tactics in the industry.
The choice is also influenced by the need to have adequate and comprehensive information for my research. Banks are required
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The industry has seen a significant change in its operation over the past six (6) years with the introduction of the “Nigerian’ Banks into the Ghanaian banking industry. This has seen the face of banking change significantly from the very traditional “arm chair” banking (where customers had to walk into banking halls to get service) to the modern relationship banking (where customer becomes the focus with bankers moving service to the door steps of customers) where the customer is king.
This level of competition has seen banks introduce diverse products to meet the needs of various customers. Some of the most notable products recently introduced in the industry include, mobile banking, internet banking, POS service, credit and debit cards to mention but a few.
The industry capitalization has also seen a significant growth over the past two years. The Bank of Ghana in 2008 issued a directive for banks to recapitalize and shore up their stated capital to a minimum of GHS60 million from the previous level of GHS7 million.
This has been met by banks with majority foreign ownership, with locally owned banks given more time to meet the requirements
On the regulatory front, several laws have been passed in recent times

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