THE EFFECT OF FINANCIAL MIX ON THE PERFORMANCE OF FINANCIAL FIRMS IN RWANDA: A COMPARATIVE STUDY OF ECOBANK RWANDA AND EQUITY BANK RWANDA

Abstract

The impact of the financial mix on bank performance is of considerable significance to all banks. The research is focussed on setting up the effects of the financial mix on bank performance, a related report between Equity Bank Rwanda and Ecobank Rwanda within six years from 2010. The research was graphic and correlative. The study found a reliable positive correlation between debt level and return for both the Equity Bank Rwanda and Ecobank Rwanda. It will, in general, be more affordable and increasing it with a moderately low-debt cost, which prompts an expansion in return levels and thus performance. The sustainability indicators demonstrate that Ecobank Rwanda was truly steady within financial health. It had an average sustainable growth rate of 21% and Internal growth rate of 1.7%. Its rival Equity Bank Rwanda had an average sustainable growth rate of 10% and Internal growth rate of 0.6%. The debt levels are not affected by the minor shifts from both sustainable growth rate and internal growth rate. The research reasons that Ecobank Rwanda was the best financial performer than its rival, Equity Bank Rwanda.