Bank profitability determinants under IFRSs

Iatridis, George Emmanuel; Persakis, Antonios

doi:10.1504/ijea.2012.045523

Cited by 5 publications

(1 citation statement)

References 46 publications

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“…A study on the internal factors such as cost, size and liquidity of Sudan banks has concluded that cost, size and liquidity influence profitability of the banks (Eljelly, 2013). Iatridis and Persakis(2012), have examined the before and after effects of implementing IAS 1 32, IAS 39 and IFRS 7 by taking samples from UK and Greek banks. They have found that profitability of banks are influenced by size, capital and efficiency.…”

Section: Literature Review 21 Determinants Of Profitabilitymentioning

confidence: 99%

Performance of Banks in Pakistan based on determinants of Profitability

Siddiq¹,

Iqbal²,

Rehman³

2021

jbt

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The study aims to seek the internal factors that affect the profitability of banks in Pakistan from a period of 2009 to 2013 by using two proxies i.e. Return on Assets (ROA) and Return on Equity (ROE). The panel data of fifteen banks have been obtained from the financial statements of the banks. Therefore, Hausman test has verified that random effect model is most appropriate model for Return on Assets (ROA), conversely fixed effect model is prominent for Return on Equity (ROE) for the current study. The empirical results confirm that investment to total assets, leverage, Net Performing Loan (NPL) to gross advances, capital ratio and total deposits to total equity are the main determinants of profitability across both proxies (i.e. ROA and ROE). Leverage and capital ratio have significantly negative, however net performing loan to gross advance and total deposit to total equity have significantly positive influence on profitability of banks across both models. Moreover, NPL to gross advance is insignificant determinant of Return on Equity. The results are worthy for bankers and all stakeholders to make strategic decision for the competitiveness of banking sector in Pakistan.

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Section: Literature Review 21 Determinants Of Profitabilitymentioning

confidence: 99%