scholarly journals PROFITABILITY OF BANKS IN BOSNIA AND HERZEGOVINA: PANEL ANALYSIS

2017 ◽  
Vol 1 (13) ◽  
pp. 11
Author(s):  
Slađana Paunović ◽  
Borka Popović ◽  
Dajana Kovačević
Keyword(s):  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Internal Variables ◽  
Panel Analysis ◽  
Return On Assets ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Net Interest Margin ◽  
External Variables ◽  
Macroeconomic Indicators

This paper examines the factors that determine the profitability of the banking sector in Bosnia and Herzegovina, measured by return on assets and net interest margin in the period 2008-2014. As the independent variables we used internal variables specific to the operations of banks, as well as external variables that represent the most important macroeconomic indicators. The analysis showed that the most significant impact of internal variables includes: cost-assets ratio of permanent and total assets, and the scope of the bank. When it comes to macroeconomic variables, inflation shows a significant effect on the movement of profitability of the banking sector in Bosnia and Herzegovina.

scholarly journals Does the oligopolistic position of banks affect the performance of the banking sector in the Federation of Bosnia and Herzegovina?

2021 ◽  
Vol 13 (2) ◽  
pp. 113-131
Author(s):  
Almir Alihodžić
Keyword(s):  
Growth Rate ◽  
Bosnia And Herzegovina ◽  
Concentration Index ◽  
Banking Sector ◽  
Positive Impact ◽  
Market Concentration ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Negative Effect

The level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while there has been an increased concentration of some larger banks in the system. The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model. The results showed that the foreign-owned Banks (FB) variable has a positive impact on the variable return on Assets (ROA), while the variables bank size (BS) and market concentration index for loans (HHI) have a negative impact. The result also showed that the two variables the growth rate of total loans (GRTL) as well as foreign-owned banks (FB) have a positive impact on the variable return on equity (ROE), while the variables market concentration index for loans (HHI) and bank size (BS) have a negative effect. The third result is that the variable net interest margin (NIM) has the strongest positive impact on the two variables foreign-owned banks (FB) and credit growth rate (GRTL), while concentrations for credit placements (HHI) and bank size (BS) have a negative effect.

Corporate Performance during Business Cycles: Evidence from Indian Manufacturing Firms

2018 ◽  
Vol 19 (5) ◽  
pp. 1261-1274 ◽  
Author(s):  
M. A. Lagesh ◽  
Maram Srikanth ◽  
Debashis Acharya
Keyword(s):  
Business Cycles ◽  
Manufacturing Firms ◽  
Strategic Decision ◽  
Bank Credit ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Macroeconomic Variables ◽  
Coverage Ratio ◽  
Independent Variables ◽  
Functional Areas

The present study is an attempt to assess the ‘probability of incurring loss’ of manufacturing firms in India during different phases of business cycles. We use data on a sample of 87 manufacturing companies for the period from 2002 to 2014 (comprising 1131 firm years). We use the panel logit model with the dependent variable derived from the return on assets to empirically test the hypothesis. Besides, we use firm-specific variables and macroeconomic variables as independent variables in the model. Firm-specific variables, namely size of the firm and interest coverage ratio and macroeconomic variables namely exchange rate, bank credit, inflation, interest rate and index of industrial production are statistically significant in predicting the probability of incurring loss of the firms during the study period. The results are important for investors, corporate houses, managers, lenders, policymakers and the research community as business cycles have a visible impact on all functional areas of an organization. Our study assumes significance because of the importance of macroeconomic variables in the strategic decision-making of the corporate sector in general and manufacturing firms in particular.

scholarly journals Pengaruh Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return on Assets, Loan To Deposit Ratio, dan Bank Size terhadap Harga Saham Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia

2021 ◽  
Vol 5 (5) ◽  
pp. 546
Author(s):  
Aries Santoso ◽  
Carunia Mulya Firdausy
Keyword(s):  
Significant Influence ◽  
Stock Price ◽  
Banking Sector ◽  
Stock Exchange ◽  
Capital Adequacy ◽  
Return On Assets ◽  
Purposive Sampling ◽  
Net Interest Margin ◽  
Capital Adequacy Ratio ◽  
Interest Margin

This study aims to analyze the influence of Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return on Assets, Loan to Deposit Ratio, and Bank Size jointly and partially to Stock Price of banking sector company that listed on Indonesian Stock Exchange for period 2011-2018. This research used the purposive sampling method and obtained the 5 largest market capital banking sector companies as a sample. The analysis method used is multiple linear regression through SPSS 26 program. The results of this study show that Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, and Bank Size have significant influence to stock price. While Capital Adequacy Ratio, Non-Performing Loan, Loan to Deposit Ratio partially have significant influence on the stock price. Meanwhile, Net Interest Margin, Return On Asset, and Bank Size have not a significant influence on the stock price of banking sector company that listed on the Indonesian Stock Exchange for period 2011-2018. Penelitian ini dimaksudkan untuk mencari pengaruh Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, dan Bank Size mengenai keterkaitannya pada harga saham baik secara bersamaan maupun parsial terhadap harga saham perusahaan sektor bank yang ada di Bursa Efek Indonesia untuk periode penelitian 2011 – 2018. Penelitian ini mengunakan metode purposive sampling yang ditetapkan sebanyak 5 perusahaan sektor perbankan yang memiliki kapitalisasi pasar terbesar sebagai sampel. Metode analisis yang dipakai menggunakan regresi linear berganda melalui bantuan SPSS 26. Hasil penelitian membuktikan secara simultan, Capital Adequacy Ratio, Non-Performing Loan, Net Interest Margin, Return On Assets, Loan to Deposit Ratio, dan Bank Size berpengaruh signifikan terhadap harga saham. Sementara secara parsial, Capital Adequacy Ratio, Non-Performing Loan, dan Loan to Deposit Ratio berpengaruh terhadap harga saham. Sedangkan Net Interest Margin, Return On Asset, dan Bank Size tidak berkaitan terhadap harga saham sektor bank yang terdaftar di Bursa Efek Indonesia periode 2011-2018.

Achieving Financial Sustainability in Ghana’s Banking Sector: Is Environmental, Social and Governance Reporting Contributive?

2021 ◽  
pp. 097215092110443
Author(s):  
Haruna Maama
Keyword(s):  
Banking Sector ◽  
Annual Reports ◽  
Financial Sustainability ◽  
Environmental Reporting ◽  
Return On Assets ◽  
Reporting Practices ◽  
Net Interest Margin ◽  
Content Analysis Method ◽  
Negative Impacts ◽  
The Impact

Despite banks not having any significant direct negative impacts on the environment and society, they adopt environmental, social and governance (ESG) accounting. Meanwhile, ESG reporting consumes additional resources and exposes firms’ strategies to competitors. The study employed a legitimacy theory to investigate the impact of ESG reporting on the financial sustainability of banks in Ghana. The study relied on 10 years of annual reports of all the banks in Ghana. The banks’ ESG reporting practices were assessed based on a content analysis method. The financial sustainability was measured based on return on assets (ROA) and net interest margin (NIM). Evidence showed that environmental reporting (ERI) impacted the banks’ NIM and ROA inversely and significantly, whilst governance reporting had a positive but insignificant relationship with NIM and ROA. The result further demonstrated that social reporting (SRI) impacted NIM and ROA positively and significantly. The overall ESG reporting had a negative and significant relationship with the banks’ financial sustainability. Hence, the ESG reporting did not improve the financial sustainability of banks, and banks in Ghana have less of an incentive to report on ESG as opposed to banks in other countries, where such reporting generally makes financial sense.

scholarly journals The Effect of Net Interest Margin (NIM) and Operational Costs Operating Income (BOPO) on Return on Assets (RoA) at PT. Bank Rakyat Indonesia, Tbk

2020 ◽  
Vol 2 (1) ◽  
pp. 1
Author(s):  
Eni Puji Astuti ◽  
Farah Maulia Husna
Keyword(s):  
Banking Sector ◽  
Linear Regression Analysis ◽  
Return On Assets ◽  
Significance Level ◽  
Operating Income ◽  
The Public ◽  
Operational Costs ◽  
Net Interest Margin ◽  
Positive Effect ◽  
Interest Margin

Banks are known as financial institutions whose main activities are collecting funds from the public, channeling funds to the public, and performing other services in the banking sector. The purpose of this study was to determine the effect of Net Interest Margin (NIM) and Operational Income Operating Costs (BOPO) Against Return On Assets (ROA). The sample of this study is the financial statements of PT. Bank Rakyat Indonesia (Persero) Tbk. from 2008 to 2017, this research uses the Multiple Linear Regression Analysis method using an SPSS test. The results showed that Net Interest Margin has a positive effect on Return On Assets, with a tcount greater than ttable (3.021> 2.365) and a significance level of 0.019 less than a significant level of 0.05 (0.019 <0.05) and Operating Income Costs Operations have a negative effect on Return On Assets, with a  tcount greater than ttable (-7,166> 2,365) and a significance level of 0,000 less than a significant level of 0.05 (0,000 <0.05). Net Interest Margin (NIM) and Operational Costs Operating Income (BOPO) has a positive effect on Return On Assets (ROA), with a Fcount greater than Ftable (26.298> 4.46) and a significance level of 0.001 smaller than a significant level of 0, 05 (0.001 <0.05). The coefficient of determination that can be equal to 0.849 or 84.9% means as much as 15.1% is likely influenced by variables not examined.

scholarly journals CAPITAL STRUCTURE AND BANK PERFORMANCE OF ISLAMIC AND COMMERCIAL IN YEMEN

2021 ◽  
Vol 9 (12) ◽  
pp. 39-49
Author(s):  
Samer Ahmed Ali Assirri ◽  
C.K. Hebbar
Keyword(s):  
Capital Structure ◽  
Banking Sector ◽  
Positive Impact ◽  
Bank Performance ◽  
Short Term ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Total Debt ◽  
The Impact

This study aims to examine the impact of capital structure on bank performance. This research verified the existence of several relationships between capital structure as measured by LAR, EAR, and Total Debt ratio on bank’s performance as measured by ROA and ROE, EPS, and NPM. Using the panel data of bank from 2010 to 2019, In Islamic banks , the results of the present study revealed that the contributions of the capital structure to ROA were significant. This result was in line with the findings of the past studies. For instance, El-Chaarani and El-Abiad (2019) found that positive and significant impacts of short-term debt and total debt on the return on equity of the banking sector in Middle East region, a negative and significant impacts of short-term debt and total debt on the return on assets, and a positive impact of long-term debt on the return on assets ratio. In commercial banks sector the regression analysis revealed that the contributions of the three independent variables to the EPS were non-significant. Also, the contributions of the total debt and LAR to the independent variables ROE were significant. In contrast, the contribution of the EAR to the independent variable ROE was non-significant. Moreover, the contribution of the LAR to NPM was significant. Also, the contributions of the EAR and the total debt to NPM were non-significant. Furthermore, the contributions of the LAR and EAR to ROA were significant. In contrast, the contribution of the total debt to ROA was non-significant. In general, the contributions of the LAR and EAR to ROA were significant.

scholarly journals Pengaruh Faktor Internal dan Eksternal Terhadap Harga Saham

2020 ◽  
Vol 10 (2) ◽  
pp. 176
Author(s):  
Elvin Ruswanda Yudistira ◽  
I Made Pradana Adiputra
Keyword(s):  
Stock Prices ◽  
Stock Price ◽  
Inflation Rate ◽  
Banking Sector ◽  
Stock Exchange ◽  
External Factors ◽  
Return On Assets ◽  
Internal Factors ◽  
Return On Equity ◽  
Net Interest Margin

The purpose of this experiment is to prove internal factors and external factors to the stock price. Internal factors include: Return on Assets, Return on Equity, Net Interest Margin and Operating Costs / Operational Scoping. While external factors include: the inflation rate and the BI rate. The population in this study is the company placed on the Indonesia Stock Exchange (IDX) in the banking sector for the 2015-2019 period. There were 32 people represented in this study and used a collection technique, namely purposive sampling. The final results in this study indicate that ROA has a positive and significant effect on stock prices. ROE is negative and significant towards stock prices. Negative shares and insignificant stock prices. BOPO negative and insignificant influence on stock prices. The inflation rate is negative and insignificant towards stock prices. BI Rate has a positive and insignificant effect on stock prices. Simultaneously ROA, ROE, NIM, BOPO, Inflation Rate and BI Rate significantly influence stock prices.

scholarly journals ANALISIS PENGARUH BOPO, NPL, NIM, DAN LDR TERHADAP PROFITABILITAS PADA BANK UMUM DI INDONESIA PERIODE 2012-2017

KEUNIS ◽  
2019 ◽  
Vol 7 (1) ◽  
pp. 34
Author(s):  
Evi Rohmiati ◽  
Winarni Winarni ◽  
Nina Woelan Soebroto
Keyword(s):  
Regression Analysis ◽  
Significant Influence ◽  
Commercial Banks ◽  
Analysis Model ◽  
Return On Assets ◽  
Independent Variables ◽  
Net Interest Margin ◽  
Analysis Technique ◽  
Independent Variable ◽  
Research Show

<p><em>This research is performed in order to test the influence of the Operation Expenses to Operations Income (BOPO), Non Performing Loan (NPL), Net Interest Margin (NIM), and Loan to Deposit Ratio (LDR) toward Profitability of Commercial Banks in Indonesia Period 2012-2017. </em></p><p><em>            The sample used is 7 Commercial Banks that entered into the list of Commercial Banks Business Activities 2012-2017. The independent variables in this research are BOPO, NPL, NIM, and LDR. While the dependent variable is Profitability which is represented by Return On Assets (ROA). The analysis model used in this research is Multiple Linear Regression, while the analysis technique in this research using F Statistic Test, t Statistic Test, and Determination Coefficient Test. </em></p><em>            The results of this research show that BOPO and NIM have significant influence to Profitability, while NPL and LDR have not significant influence to Profitability. Based on result of regression analysis, it is obtained that Adjusted R<sup>2</sup> is 0,906, meaning the contribution of independent variable in explaining the dependent variable is 90,6% and the rest that is 9,4% is influenced by other variable not examined in this research.</em>

scholarly journals Banks’ Profitability Under Democratic & Dictatorship Regime: Evidence from Pakistan

2019 ◽  
Vol 2 (1) ◽  
pp. 1-9
Author(s):  
Muhammad AsadUllah
Keyword(s):  
Interest Rate ◽  
Significant Relationship ◽  
Banking Sector ◽  
Negative Relationship ◽  
Banking System ◽  
Capital Adequacy ◽  
Panel Regression ◽  
Macroeconomic Variables ◽  
Independent Variables ◽  
Significant Negative Relationship

The aim of the study is to find out the determinants of profitability of Pakistan Banking System under democratic and dictatorship regime, i.e. 2006-2008 and 2009-2011 respectively. The authors were taken macroeconomic variables, i.e. GDP, Inflation and Interest Rate and bank-specific variables, i.e. Liquidity, size and capital adequacy as independent variables whereas Return on Asset as the dependent variable. By employing panel regression, the authors found that size has a significant negative relationship with profitability under both regimes. Interest and Liquidity had a positive significant relationship during democratic tenure. However, liquidity had significantly negative relationship between dictatorship duration. The findings will be helpful for the banking sector to make their policies accordingly.

scholarly journals Indicators influencing performance and stability in GCC banking sector

2017 ◽  
Vol 15 ◽  
pp. 408-420 ◽  
Author(s):  
Majed Alharthi
Keyword(s):  
Banking Sector ◽  
Foreign Direct Investments ◽  
Z Score ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Interest Margin ◽  
Vision 2030 ◽  
Generalised Method Of Moments ◽  
Using Data ◽  
Conventional Banks

The main objective of this study is to identify the factors that can impact on the profitability and stability of GCC banks, using data from the period 2005-2014, to achieve GCC Vision 2030. The profitability indicators are: return on assets (ROA), return on equity (ROE), and net interest margin (NIM). In terms of stability, this can be presented through z-score and capital ratio. The statistical regressions in this study are generalised least squares (GLS) and generalised method of moments (GMM). Using both statistical indicators (GLS and GMM) is highly limited in previous studies. The main results for profitability show that stable banks are typically more profitable than instable banks. Moreover, there is a significant and positive correlation between capital ratio and profits – larger banks obtained higher returns. To achieve GCC Vision 2030, GCC banks may benefit from concentrating on lending services. Furthermore, attracting foreign direct investments can enhance banks’ profits. In contrast, outflow remittances badly affect ROA and ROE. As for the findings of stability, z-score and capital ratio impacted each other significantly and positively. Additionally, larger banks were found to be more risky when compared to smaller banks, and lending services support stability with lower insolvency risks. Finally, ROA significantly and strongly affects both stability indicators (z-score and capital ratio). Using the foreign direct investment (FDI) as an independent variable is a contribution to the performance and stability studies in banking. The result indicates that more FDI leads to better profitability in banking sector. In addition, examining the effects of outflow remittances on performance and stability adds to the knowledge. The outflow remittances decreased ROA and ROE but improve NIM significantly. In general, Islamic banks could achieve more profits (with higher insolvency risks) than conventional banks, and are found to be well-capitalised compared to conventional banks

Sign in / Sign up

Export Citation Format

Share Document