Evaluating The Impact Of Interest Margin On The Profitability Of Banks In Ghana: A Case Study Of Fidelity Bank Ghana.

ABSTRACT

The purpose of this current study was to examine the impact of interest margin on the profitability of banks in Ghana with the focus on Fidelity Bank Ghana. Purposive sampling technique was use to select Fidelity Bank for the study. Secondary data (Annual reports of Fidelity Bank Ghana Limited for 2013-2017) was analyzed. Data was analyzed with Pearson Correlation. The findings revealed that positive relationship exist between interest rate margin and bank profitability (ROA and ROE). The study concluded that for banks to make more profit there is the need to raise net interest margin through effective and efficient means of decreasing interest expense and increasing interest income. Also, banks need to put measures in place to ensure they grow their banks by increasing the size and also ensuring they get more customers to deposit with them.