The banking sector is considered to be an important source of financing for most businesses. The common assumption, which underpins much of the financial performance research and discussion, is that increasing financial performance will lead to improved functions and activities of the organizations. The subject of financial performance and research into its measurement is well advanced within finance and management fields. It can be argued that there are three principal factors to improve financial performance for financial institutions; the institution size, its asset management, and the operational efficiency. To date, there has been little published studies to explore the impact of these factors on the financial performance, especially the commercial banks.
This study proposes that there are measurable linkages among bank's size, asset management, the operational efficiency, and the financial performance. in addition, to examine the relationships among measures such as bank's size, operational efficiency, asset management, return on assets ( ROA), interest income, and to discuss their impact on the bank's performance. Financial analysis is used to quantitatively examine the differences in performance among commercial banks in Oman, and the banks are ranked based on their financial measures and performance for each bank.
Their financial characteristics as a guide line for future development, and to assess their financial performance. In order to evaluate the internal performance of a commercial bank, financial indicators are constructed from the bank financial statements. Financial ratios like ROA, asset utilization, and operational efficiency are calculated, Also, measures as assets size, and the interest income size are used to assess the performance of a commercial bank. there exist positive correlations among return on assets, asset management, operational efficiency, bank size, and the interest income size. In addition, there exist an impact of asset management, operational efficiency, and the bank's size on the financial performance of the bank.
Their financial characteristics as a guide line for future development, and to assess their financial performance. In order to evaluate the internal performance of a commercial bank, financial indicators are constructed from the bank financial statements. Financial ratios like ROA, asset utilization, and operational efficiency are calculated, Also, measures as assets size, and the interest income size are used to assess the performance of a commercial bank. there exist positive correlations among return on assets, asset management, operational efficiency, bank size, and the interest income size. In addition, there exist an impact of asset management, operational efficiency, and the bank's size on the financial performance of the bank.
