The effect of investment management on the financial performance of commercial banks in Uganda :

Abstract

The study examined the aspect of the investment management on the financial performance of commercial banks in Pallisa district a case of DFCU bank Pallisa branch. The objective of the study was to determine the effect of investment allocation on the financial performance of commercial banks, to determine the effect of financial statement analysis on the financial performance of commercial banks and to determine the effect the effect of investment monitoring on the financial performance of commercial banks. The study used descriptive research design with a population of 40 commercial banks and a sample of 36 were drawn from administration department, credit department, loan department, auditing department and information and technology department and a questionnaire was employed in the collection of data. The findings showed that there was a negative effect of investment allocation on financial performance at (r= -0.14, F=0.010, p<0.05), financial statement analysis on the financial performance at (r=0.194, F= 3.710, p<0.05) and investment monitoring on the financial performance at (r=0.179, F=1.254, p<0.05). This therefore shows that there was a positive effect of investment management on the financial performance of commercial banks in DFCU Bank, Pallisa. However, the study recommended that the bank needs to put more effort in training and equipping their clients for better results and enhance greater performance in satisfaction of their customers.