Financial Ratios and Trend analyses of Ghazanfar Bank from 2015 till 2024
By: Sayed Akef Arefi
Methodology
This study adopts a quantitative, analytical research design based on secondary data obtained
from the published financial statements of Ghazanfar Bank for the period 2015–2024. The
study aims to evaluate the bank’s financial performance over time and identify the key factors
affecting that performance.
The data were collected from:
• Annual financial statements of Ghazanfar Bank
• Balance Sheet
• Income Statement
• Notes to accounts and financial reports
This study analyses the financial performance of Ghazanfar Bank using secondary data
obtained from its annual financial statements for the period 2015–2024. The analysis combines
several quantitative techniques to provide a comprehensive evaluation. First, financial ratio
analysis is used to measure key performance indicators such as profitability, liquidity, and
efficiency. Second, trend analysis is conducted to observe year-to-year changes in these
indicators over time. Third, a One-Way ANOVA test is applied to determine whether there are
statistically significant differences in financial performance across the years. Finally, multiple
regression analysis is employed to identify the main factors that significantly affect the bank’s
financial performance. Together, these methods provide both descriptive and statistical
evidence for understanding performance patterns and the key drivers influencing them.
1. Financial Ratio Analysis
• Return on Assets (ROA)
• Return on Equity (ROE)
• Net Profit Margin (NPM)
Financial ratios were calculated for each year (2015–2024) to standardize the financial data
and allow comparison across years.
2. Trend Analysis (Year-to-Year Comparison)
A trend analysis was conducted to observe how financial performance indicators changed
from 2015 to 2024.
3. One-Way ANOVA (Comparison Across Years)
To test whether financial performance significantly differs across years, a One-Way ANOVA
was applied.
Hypotheses:
H0: μ2015=μ2016=⋯=μ2024
H1: At least one year’s performance is different
4. Multiple Regression Analysis (Main Effects)
To identify the main factors affecting financial performance, a multiple regression model was
used.
General model:
FP=β0+β1(Assets)+β2(Deposits)+β3(Loans)+β4(Expenses)+β5(Liquidity)+ϵ
Where:
• FP = Financial Performance (ROA/ROE)
• β = coefficients showing the effect of each factor
• ε = error term
The analysis for this study was conducted using EViews and Microsoft Excel. Excel was used
for organizing the secondary data extracted from the financial statements, calculating financial
ratios, and preparing the dataset for analysis. EViews was employed to perform the statistical
analyses, including trend analysis, One-Way ANOVA for comparing financial performance
across the years 2015–2024, and multiple regression analysis to identify the main factors
affecting the bank’s financial performance. The combined use of these tools ensured accurate
computation, efficient data handling, and reliable statistical results.