Abstract:

The banking sector is the core segment of the financial system which can articulate a country’s economic progress. Further banks play an important role in the mobilization and allocation of financial resources in an economy. The soundness of financial position of a bank adds confidence to all financial participants and equally important for the country’s economy. In recent decades and relative to Guyana, banks have undergone extensive transformations brought about by the evolution of the contemporary economy, the behavior of recipients of banking services, the policies pursued by Governments over the banking sector and the progress of modern technology. In this paper quantitative and qualitative analysis on Return of Assets (ROA) and Return on Equity (ROE) are completed for the top three commercial banks with the highest levels of asset holdings in Guyana from years 2010 to 2017. They are Republic Bank Guyana Limited, Guyana Bank for Trade and industry limited and The Bank of Nova Scotia. This study is further diagnostic and exploratory in nature and makes use of secondary data and conclusion drawn provides that whilst these banks are profitable, management of its expenses must be a long-term strategic objective to manage effectively as margins are shrieking and further importantly to sustained market share and revenues horizon.

Keywords: Return on Assets (ROA), Return on Equity (ROE), Commercial banks & Profitability.

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