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Determinants of Profitability Performances of Commercial Banks in Turkey after the Global Crisis Period

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  • Esengül Salihoglu

    (Sivas Cumhuriyet University)

Abstract

The study aimed to determine the factors which affect the profitability performance of commercial banks in Turkey at the balance sheet level. For this purpose, it analyzed the annual data for the 2009- 2019 period covering the 16 commercial banks operating in Turkey. In the analysis, three different models established and examined the profitability performances of the banks using the Panel Generalized Moments Method (GMM). According to the analysis results, it was seen that the profitability indicators were positively affected by the previous period values and the capital adequacy ratio. While the liquidity ratio affects the return on assets (ROA) negatively, it affects the return on equity (ROE) and net interest margin (NIM) positively. Also, the sector shares of banks negatively affected ROE and NIM. Loans under the follow-up ratio affected all three profitability indicators negatively. Finally, it has been determined that the effects of independent variables on ROE are stronger than their effects on ROA and NIM.

Suggested Citation

  • Esengül Salihoglu, 2020. "Determinants of Profitability Performances of Commercial Banks in Turkey after the Global Crisis Period," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 35(114), pages 211-240, October.
    • Handle: RePEc:acc:malfin:v:35:y:2020:i:114:p:211-40
    DOI: https://doi.org/10.33203/mfy.775448
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    More about this item

    Keywords

    Banking Sector; Risk Management; Profitability;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G00 - Financial Economics - - General - - - General

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