The Performance of selected universal banks: Evidence from the data envelopment analysis (DEA) efficiency model in conjunction with financial rations for the period 2001-2005

• Main Authors: Climaco, Charmaine, Gianzon, Angeline, Lucin, Katherine Shayne, Prodigalidad, Gail
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Universal banks; Banks and banking
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/8576
• Institution: De La Salle University

The proponents conducted a study on the performance of selected universal banks using the Data Envelopment Analysis (DEA) Efficiency Model in conjunction with the financial ratios for the period 2001-2005. After gathering the necessary data from the different banks and the Securities Exchange Commission (SEC), the proponents computed for the financial ratios of the banks namely, Liquid assets to total deposits, Liquid assets to total assets, Loans to total assets, Deposit to total assets, Loans to deposits, Return on assets, Return on equity, Return on loans, Capital accounts to loans, Other operating income to average assets, Non-interest expense to average assets and Net interest to average assets. The financial accounts of the banks namely: Total Deposits, Total Loans, Interest Expense, Non-interest Expense and Interest Income were then put in the DEA Model in order to group them into High, Medium and Low group. After such, Factor Analysis was employed using the computed financial ratios of the banks to determine which of the factors a particular financial ratio belongs to. Results from the Data Envelopment Analysis and the Factor Analysis were then used in order to evaluate the efficiency and performance of the selected universal banks. It was found out that based on the average DEA efficiency scores of the banks, they were classified either under high and medium groups while in the Factor Analysis Model, the financial ratios were clustered into three factors according to their correlation.