Comparative Performance Analysis of Public Owned and Private Owned Commercial Banks in Ethiopia

The main objective of this paper is to evaluate the performance of public owned and private owned commercial banks in Ethiopia from the period 2001 to 2013. Secondary data which is collected from the annual reports of two public owned and six private owned commercial banks and National Bank of Ethiopia is used in the study. The performance of the two groups of banks evaluated and compared from the perspective of Return on Asset, Return on Equity, Net Interest Margin, Net Profit Margin, Deposit Mobilization and Loan Disbursement. Ratio and graph are employed to analyse the data. The results of the study indicated that private owned commercial banks are performing well in many of the metrics of the performance evaluation such as ROA, NIM, deposit performance and loan performance relative to the public owned banks while public owned banks are doing better than private owned commercial banks in terms of ROE.