Banks’ Profitability in Selected Central and Eastern European Countries

Căpraru, Bogdan; Ihnatov, Iulian

doi:10.1016/s2212-5671(14)00844-2

Cited by 77 publications

(96 citation statements)

References 3 publications

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“…What's more, this examination will assist the policymakers and investors to evaluate the gainfulness of Insurance industry in Pakistan. (Căpraru & Ihnatov, 2014). Therefore, it is essential to evaluate the performance of insurance companies in terms of their financial standings in regards with the perception through regulators, managers, potential investors, owners and depositors (Agapova, & McNulty, 2016).…”

Section: Problem Statementmentioning

confidence: 99%

Factors Affecting Financial Performance of Insurance Industry in Pakistan

2019

RJFA

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This study investigated the indicators of financial performance of insurance companies of Pakistan. Gross written premium (GWP), Claim (CLM), Reinsurance (Rei), Management expenditure (MGE), Interest rate (IR), Size (SIZ), Leverage (LEV), Real GDP (RGDP) were taken as factors (independent variables), whereas Sales Profitability (SAP), Investment Income (INP), and Underwriting profit (UWP) were taken as proxy of financial performance. Data of five 5 insurance companies are chosen covering the period of 2013-2017. Data was analyzed using panel regression. Findings showed that the gross written premium has the significant impact on all three measure of profitability. The further size of the company has a negative impact on sales and investment profit. In addition, the claims, reinsurance, GDP, interest rate and management expenses have an insignificant relationship with all three profitability measures. Hence, in order to improve operational and financial performance of the insurance industry in Pakistan, more focus should be given to factors that could increase premium.

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Section: Problem Statementmentioning

confidence: 99%

Factors Affecting Financial Performance of Insurance Industry in Pakistan

2019

RJFA

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“…Banks with higher capital adequacy produce higher profits; However, Size shows a negative effect on NIM. (Căpraru & Ihnatov , 2014)…”

Section: Litreture Reviewmentioning

confidence: 99%

Determinants of Profitability in Banking Sector: An Evidence from Pakistan

Raza

Saeed

Hena

2019

ESJ

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This research explores the association of bank specific characteristics and its profitability. Profitability of bank relates to external and internal factors i.e. size, capital, loan and deposit generally. The study is mainly concerned with the internal factors which have an effect on the profitability of the banks in Pakistan. 34 Banks including 21 Local Private Banks, 9 Public Sector Commercial Banks, 4 Foreign Banks and 4 Specialized Banks operate their services in Pakistan. Data has been taken of overall banking industry from the website of the Central Bank, the State Bank Pakistan (SBP) for the period 2006-2016. Ordinary Least Square (OLS) method has been used with the help of E-View statistical software. Spread Ratio (SR) and Net Interest Margin (NIM) are considered for indicators of profitability (Dependent Variables) whereas Size, Capital, Loan and Deposit are used as explanatory variables. The result reveals that size of asset has negative and significant effects on profitability, the banks loans has positive impact on bank performance, capital associates positively with NIM but shows adverse effects on SR and Deposit does not exhibit any prominent influence on profitability of banks in Pakistan.

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“…The most widely used variable to measure bank performance is NPL [1,2,[24][25][26][27]. ROA is also a very popular measure to assess bank performance [28][29][30][31][32][33][34][35]. Other variables are bank failure rates [36,37], net interest margin [38], growth in loans [39], and probability of distress events [4].…”

Section: Literature Reviewmentioning

confidence: 99%

The Effect of Housing Prices on Bank Performance in Korea

Kim

Park

2019

Sustainability

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This study analyzes the relationship between housing prices and bank performance in Korea. To this end, using lending growth, return on assets, and non-performing loans as a performance measure, we estimate fixed-effects models for each measure. Major empirical results are summarized as follows. First, fluctuations in housing prices affect the banks’ lending decisions. If housing prices rise, banks tend to increase the volume of loans. Second, fluctuations in housing prices affect the quality of assets owned by banks. Banks’ asset soundness will improve in the case of a rise in housing prices. Third, fluctuations in housing prices have a greater impact on bank profitability when the real estate market goes bust. Our study suggests that in Korea, one of the emerging markets, there is a positive relationship between changes in housing prices and banks’ performance. In particular, banks’ profitability and soundness could be significantly hampered by a drop in housing prices. Therefore, it is necessary to be wary of excessively expanding real estate loans during the period of real estate booms.

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Banks’ Profitability in Selected Central and Eastern European Countries

Cited by 77 publications

References 3 publications

Factors Affecting Financial Performance of Insurance Industry in Pakistan

Factors Affecting Financial Performance of Insurance Industry in Pakistan

Determinants of Profitability in Banking Sector: An Evidence from Pakistan

The Effect of Housing Prices on Bank Performance in Korea

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