Citation: Mohamed Aymen Ben Moussa, Adel Boubaker and Abdelmonem Naimi (2022) The Determinants of Bank Profitability: Case of Tunisia, International Journal of Business and Management Review, Vol.10, No.1, pp.44-56
Abstract: The purpose of this article is to examine the impact of selected internal and external factors on a bank’s profitability. The research investigates the impact of size; liquidity ; operating costs ; deposits ; credits ; GDP growth and inflation change of the profitability of sample of 11 banks in Tunisia for the period ( 2000…2018). The determinants were used to construct 2 models with ROA and ROE as a proxies and regression analysis using panel approach. It was found that size ; bank deposit ; operating costs ; liquidity ; economic growth have a significant impact on bank profitability measured by ( ROA and ROE).
Banking sector in Indonesia has a market share of around 80% of the entire financial system. The bank has an important function in the economy of a country, namely as a financial intermediary, which collects funds from the public that has a surplus of funds in the form of deposits and redistributes the funds to the people who need funds or fund deficits in the form of credit. In channeling the funds, banks should pay attention to the quality of credit because if in the future there is a problem loan or non-performing loan (NPL), it will harm the bank itself. Bank XYZ is one of Indonesia’s longstanding banks in Indonesia and is also known as a focused and consistent bank in the micro, small and medium enterprises sector with a credit growth of 12.14% in 2017. Loans disbursed or granted are expected to be runs smoothly until the credit is declared complete or paid off, but the potential for risk will always exist, one of them is the risk of default (default) which can lead to an increase in non-performing loans (NPLs) of 2.16% in 2017. The highest NPL credit in the Bank XYZ is in the consumer segment, which is 41%. The research to see the factors that influence the consumer credit NPL of Bank XYZ uses secondary data with the variable of NPL, gender (X1), age (X2), marital status (X3), education (X4), occupation (X5), tenor / time period (X6), collateral value (X7), and the ratio of installments to income (X8). Based on the results of logistic regression analysis, it is known that the variables that affect the NPL of XYZ Bank’s consumer credit are gender (X1),), education (X4), occupation (X5), tenor / time period (X6), at a significant level of 10%.
The study investigates the impact of internal and external factor and macro-economic variables on profitability on commercial banks of Pakistan. Dependent data analysis confirms that the bank size, capitalization, labor productivity, concentration and inflation were significant impact on the bank profitability in Pakistan
This study examined the impact of bank lending rate on the performance of Nigerian Deposit Money Banks between 2000 and 2010. It specifically determined the effects of lending rate and monetary policy rate on the performance of Nigerian Deposit Money Banks and analyzed how bank lending rate policy affects the performance of Nigerian deposit money banks. The study utilized secondary data econometrics in a regression, where time-series and quantitative design were combined and estimated. The result confirmed that the lending rate and monetary policy rate has significant and positive effects on the performance of Nigerian deposit money banks. The implication of these is that lending rate and monetary policy rate are true parameter of measuring bank performance. We therefore recommend that government should adopt policies that will help Nigerian deposit money banks to improve on their performance and there is need to strengthen bank lending rate policy through effective and efficient regulation and supervisory framework.