Al Khalij Commercial Bank and First Finance - Assignment Example

The paper "Al Khalij Commercial Bank and First Finance " is a great example of a finance and accounting assignment. KCBK and First Finance are two financial institutions operating in Qatar and have maintained their goodwill among the customers and shareholders. This report comprises macroeconomic valuables, industry valuables, financial analysis, stock price analysis and valuation of these two companies. Looking at the ratio analysis of the two companies, it was noted that in terms of investment ratios KCBK was performing well as compared to FFCK. The report found out that inflation, GDP, interest rates, monetary policy, and competition are the major macroeconomics valuables that were affecting the industry at large. In stock analysis, the results were incomparable since FFCK is not a listed company. However, the results of KCBK showed that the price of the company grew at an average rate of 2.16% over the period under consideration. However, one will need to know that the financial crisis of 2008/9 had responsibility in the changes of the prices of the company over the period of 5 years.

The decision to invest in a company is largely influenced by the company’s performance in terms of profitability, competitiveness, financial capability, and potential for growth. To get a clear picture of this, investors rely on expert performance analysis of a company presented in form of ratios, trends, and industry comparisons, to enable them to forecast the future performance of a company compared to that of its competitors. This report presents an expert analysis for two banks, Al Khalij Commercial Bank and First Finance for the purpose of determining which company is a good investment. The report involves both qualitative and quantitative analysis.

Banking sector Macroeconomics

Qatar economy is mostly influenced by oil resources which are plenty. The country has enjoyed great economic growth due to the oil growth rate. Qatar should have a good year in 2013 particularly because of a 6.4 percept growth in the coming year 2013 in the non-oil component of the economy overall whilst the banking industry should grow by more than that to help arrive at an overall growth figure of 6.4 percent (Gulf Base 2012). The GDP has been growing since the financial crisis of 2008/9.