Application of Weighted Goal Programming Model for Financial Management: A Case of Guarantee Trust Bank Nigeria

Financial management is a complex tax in an organization, especially, financial institutions since it is the strategic practice involving monitoring, controlling, protecting, and reporting of a company's financial resources. Accountants or finance teams manage a company's finances, which include all bank transactions, loans, debts, investments, and other funding sources. This study examines the financial statement administration of Guarantee Trust Bank of Nigeria using the Weighted Goal Programming (GP) model. Five objectives were identified and considered in the formulation of the Bank’s strategy: asset accumulation (goal 1), liability reduction (goal 2), shareholder wealth (goal 3), income (goal 4) and expenditures (goal 5).—input Information extracted from the 2020 annual financial report of the Bank. Additionally, interviews were conducted with the Bank’s management and other financial experts to determine the priority of the objectives under consideration. The model was resolved using the solver in Microsoft Excel 2013. The model’s optimal solution reveals that the Bank can attain all other goals except for objectives three and four. Therefore, the Bank cannot reduce or increase its other financial statement items by reducing or increasing its equity or income. To bolster its financial statement, the Bank should concentrate on decreasing its equity and increasing its revenue. This demonstrates the computational capacity and applicability of the GP concept, which is transferable to other financial institutions worldwide.