Effect of E-Banking Services on Profitability of Dashen Bank

Abstract

The subject of this study was focused on Dashen Bank e-banking services on its profitability. Among all other banks found in the country and the study area, Dashen Bank was selected for this study because it was the first bank that penetrates the market in rendering e-banking service and dominantly provided the services during those years in the study area. The major purpose of this study was to investigate the effects of e-banking services on profitability of Dashen Bank. To achieve this objective of the study, explanatory research design was employed; considering ATM, POS and NCH as independent variables and Profitability of the Bank as dependent variable. Among quantitative types of data commonly employed in the analysis of financial problems; a time series data were collected and used. Those data were obtained from annual reports of the bank during the fiscal years under review. Consequently, the analysis of the data was based on six years annual reports of the bank on NCHs, net-profits, and profit contribution of ATM and POS services of the bank. The data collected were processed using SPSS (V20) software; and the analyses of the data were made using descriptive statistics and multiple regressions. The Descriptive statistics were used to analyze the features and annual growth rate of e-banking service variables and annual net- profits of the Bank during the study years.