Financial statement analysis of dashen bank of Ethiopia

The banking sector in Ethiopia is growing fast. The suitable investment policy along with growth of business in different sectors contributes to the ever fasting growth of the banking sector in the country. Nowadays, there are around 19 commercial banks in the country, of which commercial bank of Ethiopia, governmentally owned bank, dominates the market share of the sector. This study tried to analyze the financial performance of Dashen bank of Ethiopia using trend ratio analysis by computing different ratios in order to know the financial position of the bank and to figure out its weakness for further attention. The study concluded that, Dashen bank of Ethiopia is becoming most prominent and financially strong bank and it is attractive to investors to invest in, but still, there is a need for improvement in loan default and efficiency to generate revenue from earning assets.