| dc.description.abstract | The study is a case study and it investigates the factors that determine the performance of retail
banks in South Africa, and follows a case study approach in which Ubank is the focus. The
purpose is to rank the identified factors in their order of importance for management's focus on
improving the bank's performance. Performance is examined in terms of the bank's profitability
and growth. This research utilizes secondary data analysis. The quantitative method is used by
critically analysing the financial statements of Ubank, as well as the South African economic
conditions. The ANOVA test is used as a tool of analysing the relationship between performance
and identified factors, and for testing the significance of the identified factors.
The study has found that the bank specific characteristics such as the bank size, return on
average assets, market structure, capitalization, corporate governance, information technology,
efficiency, credit risk and non-performing loans, are the factors that are relevant in the
performance of banks. The macroeconomic factors that impact on the performance of banks are
inflation, gross domestic product of the country as well as the banking regulations. The most
significant factors were monthly average assets, cost inefficiency and the capital strength was
insignificant in the study. The study concluded that poor performance of Ubank results from the
imbalance on the focus on identified factors. It further showed that the poor management of the
bank's credit system, decreasing market share and poor positioning also contribute to its
performance results compared to its competitors.
The recommendation to management was to increase the product offering of the bank through
the development of products and services that meet the customer's expectations. The
benchmarking of its technology with the leaders in the banking sector and the development of
value adding marketing and business development strategies were recommended. Lastly, the
compliance to the banking regulations. | en_US |
