The extent of improvement in the financial performance measured by the PATROL model for the United Bank for Trade and Investment during the period 2020-2022

Abstract

The study aimed to identify the extent of improvement in the financial performance of United Bank for Trade and Investment, measured according to the PATROL model, in terms of capital adequacy, credit quality, regulation, profitability, and liquidity, during the period 2020-2022. The study relied on a descriptive approach. Data was collected from the bank's published financial statements and analyzed using PATROL model equations. The results showed that United Bank for Trade and Investment's financial performance, measured according to the PATROL model, witnessed an improvement in terms of capital adequacy, credit quality, and profitability during the period 2020-2022, while the same improvement was not seen in terms of regulation and liquidity. Accordingly, the bank was recommended to continue its prudent credit policy, while ensuring the need to monitor the credit granted by the bank, assess the financial status of those granted loans, advances, or other forms of facilities, and examine the impact of monitoring on the value of the provision for doubtful debts. The use of cash and cash balances in banks' profitable assets is intended to improve liquidity ratios, while maintaining a reasonable level of liquidity to meet deposits. Finally, it was recommended to re-measure and evaluate the bank's financial performance using other ratios to express each component of the PATROL model and compare the results with those reached by the current study.

Keywords: Financial Performance, Credit Quality, Profitability, Liquidity, Capital Adequacy.