Abstract:
The study topic was the role of financial statement interpretation on the performance of financial institutions in Rwanda specifically in BPR Rubavu branch. The objective of the study were to evaluate Types of financial statements prepared by BPR Rubavu branch, to identify the financial statements practices adopted by BPR Rubavu branch and to assess the role of financial statements interpretation on the performance of BPR Rubavu branch. Literature review was guided by research objectives. The research design was descriptive. The total population were 8 respondent Tools for collecting data were questionnaires. Data was analyzed using tables, frequencies and percentages. Findings were in line with Objectives, objective one was looking at Types of financial statements prepared by BPR Rubavu branch, and these include Income Statement, Balance Sheet, Cash Flow Statement and Statement of Changes in Equity , objective two was looking at the financial statements practices adopted by BPR Rubavu branch and these include Preparation of Financial Statements, Compliance with Regulatory Standards, Internal and External Audits and the Use of Financial Ratios and objective three was looking at the role of financial statements interpretation on the performance of BPR Rubavu branch, the ROA is one of indicators of bank performance and the BPR’s assets that helped it to generate income. In other words, for every 100 Rwf invested in assets BPR Rubavu Branch has gained 9% Rwf in 2021; 10.01% Rwf in 2022 and 10.9 Rwf in 2023. This shows that during the period of my research, BPR Rubavu Branch has increased its profits a year to year. It is clear that the investment in assets done by BPR Rubavu Branch has the positive profit. The study concluded that the analysis supported the fact that financial statement support performance of financial institution, and decision making in an organization. The analysis revealed that BPR is sound, stable and safe based on the results of the findings. It is also important to note that the financial statements are a strong tool through which the performance of the financial institutions can be assessed. The study recommends that Greater emphasis should continue to be placed on the preparation of financial statements by BPR Rubavu branch BPR Rubavu should continue to provide adequate supporting information to their financial statements for ease of analysis and interpretation by the relevant stakeholders
