Determinants of Profitability of Commercial Banks in Bangladesh Rokibul Hasan Sakib and Dewan Azmal Hossain

Determinants of Profitability of Commercial Banks in Bangladesh

Author (s)

Rokibul Hasan Sakib and Dewan Azmal Hossain

Abstract

This report focuses on the determinants of profitability of 30 DSE listed Commercial banks of Bangladesh from 2010 to 2017. The analysis part of this paper includes multiple regressions to determine impact of significant variables on profitability. The findings of this paper suggests that the net interest margin ratio (NIM), Asset size (LOGA), the ratio of operating expense (OPEX) are significant against the dependent variable called Return on Equity (ROE). Interest income is main source of income for banks. The finding suggests that if asset size increases, return on equity (ROE) will decrease and if operating expense ratio increases, return on equity decreases.  Additional analysis is done in return on assets (ROA) and return on operating assets (ROOA) to justify whether the results meet with the main analysis.  The findings of this study suggest that commercial banks should be more careful while giving loans with diversified portfolio maintenance.

 Keywords: Determinants, profitability, portfolio, performance, Commercial banks, Bangladesh.

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Title: Determinants of Profitability of Commercial Banks in Bangladesh
Author: Rokibul Hasan Sakib and Dewan Azmal Hossain
Journal Name: International Journal of Science and Business
Website: ijsab.com
ISSN: ISSN 2520-4750 (Online), ISSN 2521-3040 (Print)
DOI: https://doi.org/10.5281/zenodo.3965656
Media: Online
Volume: 4
Issue: 9
Acceptance Date: 26/07/2020
Date of Publication: 29/07/2020
PDF URL: https://ijsab.com/wp-content/uploads/586.pdf
Free download: Available
Page: 1-16
First Page: 1
Last Page: 16
Paper Type: Research Paper
Current Status: Published

Cite This Article:

Rokibul Hasan Sakib and  Dewan Azmal Hossain (2020). Determinants of Profitability of Commercial Banks in Bangladesh. International Journal of Science and Business, 4(9), 1-16. doi: https://doi.org/10.5281/zenodo.3965656

Retrieved from https://ijsab.com/wp-content/uploads/586.pdf

 

About Author (s)

Rokibul Hasan Sakib (Corresponding author), Post graduate student, Department of            Accounting & information Systems, University of Dhaka, Dhaka-1000, Bangladesh

 Dewan Azmal Hossain, Department of Accounting & Information Systems, University of   Dhaka, Dhaka-1000, Bangladesh. ORCID iD: https://orcid.org/0000-0002-2311-6941

 

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DOI: https://doi.org/10.5281/zenodo.3965656

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