Financial Performance Analysis of Commercial Banks Using Camel : Case of Vietinbank and Sacpmbank
Abstract
Financial soundness of commercial banks is a matter of great importance, not
only to the banks themselves, but also to the wider extent, the whole economy. Thus
regular check-up should be carried out to ensure normal operation. The CAMEL
framework is one of the most widely used methods for standardized examination of
banks. This paper seeks to evaluate the financial performance of two leading commercial
banks in Vietnam, namely Vietinbank and Sacombank, using CAMEL for the five-year
period from 2009 to 2013. It firstly reviews relevant literature regarding financial
analysis of commercial banks, the CAMEL model and its application. The findings reveal
that the position of the banks under study was satisfactory as far as capital adequacy,
asset quality and earnings are concerned. The two banks should work more on improving
their liquidity.
Keywords: financial performance analysis, CAMEL framework, Vietinbank, Sacombank