Journal
Metropolitan Journal of Academic Multidisciplinary Research
MJAMR
The Determinants Of Financial Performance In Tropical Bank Limited Kampala Road.
Habiyaremye Vallence, Zikusooka Enock
| Journal | Metropolitan Journal of Academic Multidisciplinary Research (MJAMR) |
| Volume / Issue | Vol. 5, No. 3 |
| Published | 31 March 2026 |
| ISSN | 3006-4384 |
Abstract
The study investigated the determinants of financial performance in Tropical Bank Limited, located along Kampala Road, Kampala, Uganda. The research sought to understand how capital adequacy, liquidity, credit risk, and operational efficiency influenced the bank's overall financial performance over a five-year period spanning 2018 to 2022. A quantitative research design was adopted, and data were collected from the bank's audited annual financial reports and statements. Multiple regression analysis was used to establish the nature and strength of the relationships between the independent variables and the dependent variable, which was measured using Return on Assets (ROA). The results revealed that capital adequacy and operational efficiency were the strongest and most statistically significant predictors of financial performance, with p-values of 0.003 and 0.008, respectively. Liquidity demonstrated a moderate positive relationship with financial performance (p = 0.041), while credit risk showed a negative but statistically significant association (p = 0.012). The study concluded that Tropical Bank Limited's financial performance was primarily driven by the strength of its capital base and the efficiency with which it managed its dayto-day operational costs. It was recommended that the bank's management prioritizes capital strengthening strategies, adopt more rigorous credit risk assessment frameworks, and invest in operational technologies capable of reducing overhead costs. Future researchers were encouraged to explore additional determinants such as macroeconomic variables and corporate governance structures.
Keywords
Financial performance
capital adequacy
liquidity
credit risk
operational efficiency
Return on Assets
commercial banking
Uganda.
Cite This Article
Habiyaremye Vallence & Zikusooka Enock (2026). The Determinants Of Financial Performance In Tropical Bank Limited Kampala Road. Metropolitan Journal of Academic Multidisciplinary Research, 5(3). https://journals.miu.ac.ug/pages/article.php?article_id=306
More in This Issue
View full issue →
41
Relationship between Urban Livelihood Adaptation Within The PDM Framework And Local Economic Development Outcomes In Kampala District.
Urban livelihood adaptation
Parish Development Model
enterprise innovation
market adaptation
42
Relationship Between Working Capital Management and Profitability: A Case Study of Manufacturing Firms in Namanve Industrial Park
Working capital management
profitability
manufacturing firms
Namanve Industrial Park
43
REVENUE GENERATION AND URBAN DEVELOPMENT IN LOCAL GOVERNMENT AUTHORITIES IN UGANDA: A CASE OF KISORO MUNICIPALITY
REVENUE GENERATION AND URBAN DEVELOPMENT IN LOCAL GOVERNMENT AUTHORITIES IN UGANDA: A CASE OF KISORO MUNICIPALITY
44
Role of Corporate Social Responsibility (CSR) on Brand Loyalty. A Case of CSR practices and consumer loyalty at Uganda Breweries Limited
Corporate Social Responsibility
brand loyalty
Uganda Breweries Limited
consumer behavior
45
SCHOOL VAN SCHEDULES AND ACADEMIC PERFORMANCE OF LEARNERS IN PRIMARY SCHOOLS IN NANSANA DIVISION, WAKISO DISTRICT, UGANDA
SCHOOL VAN SCHEDULES AND ACADEMIC PERFORMANCE OF LEARNERS IN PRIMARY SCHOOLS IN NANSANA DIVISION
WAKISO DISTRICT
UGANDA