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banks profitability
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TOPIC: banks profitability

banks profitability 5 years, 8 months ago #272

  • meshel
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Hallo

am looking for information on determinants of banks profitability.

thanks guys

Re: banks profitability 5 years, 8 months ago #273

  • poojad
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one of the important parameters that determines banks profitability is net interest margin which is a measure of difference between the interest income generated by banks and the amount of interest paid out to their lenders(for example, deposits. i think amount casa accounts also determines banks profitability which might ultimately result in better NIM. i am not sure abt other parameters, may be if u are doing some hypothesis u may consider GDP growth rate, prevalent interest rates ....
The following user(s) said Thank You: meshel

Re: banks profitability 5 years, 8 months ago #275

The following variables have positive impact on profitability of the banks
1. Interest Earned - Interest Paid
2. Total Income - Interest Income (also known as Net Interest Income)
3. Total Advances / Total Deposits

and the variables given below have negative impact on profitability
1. Non Performing Assets
2. Provisions and Contingencies
3. Other Expenses
The following user(s) said Thank You: meshel
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