Staff Expenses and Its Effect on the Bank's Net Profit

Abstract

The aim of the study is to explore the relationship between a net profit of Nepalese commercial banks with staff expenses and staff bonus. This study is based on panel data which is collected from five sampled banks through the review of the annual report during the study period of fiscal year 2012/13 to 2016/17. These collected data are analyzed by using descriptive statistics, Pearson correlation coefficient, and log-log multiple regression models. The Mini-Tab software is used for the analysis of data. The results indicate that the predictor variable staff expenses do not significantly impact on net profits of the bank even though they are positively correlated. On the other hand, the response variable (net profit) is significantly affected by the predictor variable staff bonus. Researcher: A Research Journal of Culture and SocietyVol. 3, No. 3, January 2018, Page: 63-71

Training and Development Costs, Staff Costs and Operational Profitability in Nepalese Commercial Nanks

“…Similarly staff costs revealed high in government owned banks while operational profit revealed high in joint venture banks. Additionally the staff costs of private banks has been highly explained by training and development costs and it has resulted higher positive impact of staff cost with operational profit and it differs from the line of Budhathoki & Rai (2018). In addition this study can be used for further research regarding cross banking sector.…”

“…The amount of staff costs incurred by organizations dependents on the organizational policy, management's placement on the welfare of its employees and a number of other variables affecting the entity. Budhathoki & Rai (2018) revealed that Nepalese commercial banks cannot increase the net profit by increasing their staff salary and argued that banks should cut their staff expenses in order to increase the net profit. Operational profit and net profit are the different parameters for measuring the profitability.…”