IDEAS home Printed from https://ideas.repec.org/a/blg/reveco/v67y2015isupplementp135-144.html
   My bibliography  Save this article

The Financial Performance Of Commercial Banks Listed And Traded On Bucharest Stock Exchange

Author

Listed:
  • RODEAN Maria-Daciana

    (Lucian Blaga University of Sibiu)

Abstract

Even though banks are playing the role of financial intermediaries, their main objective is to obtain profit. The most commonly used indicator of the profitability assessment, according to the shareholder vision is represented by the return on equity. This study has focused on achieving a factor analysis on financial profitability obtained by the top three commercial banks by using the Du Pont. The purpose of this analysis was to identify the causes rate developments. The analysis was done over a period of eight years, respectively from 2007 since 2014. Data were taken from the financial statements published by the three credit institutions. The results have demonstrated that banks in order to improve the indicator need to maintain the leverage ratio fixed either to reduce capital costs. The decrease in profitability rate determined the downward trend registered by the return on equity.

Suggested Citation

  • RODEAN Maria-Daciana, 2015. "The Financial Performance Of Commercial Banks Listed And Traded On Bucharest Stock Exchange," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(Supplemen), pages 135-144, September.
    • Handle: RePEc:blg:reveco:v:67:y:2015:i:supplement:p:135-144
    as

    Download full text from publisher

    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/67S13rodean.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Christian Harm, 2002. "Bank management between shareholders and regulators," SUERF Studies, SUERF - The European Money and Finance Forum, number 21 edited by Morten Balling, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Johan Devriese & Mathias Dewatripont & Dirk Heremans & Grégory Nguyen, 2004. "Corporate governance, regulation and supervision of banks," Financial Stability Review, National Bank of Belgium, vol. 2(1), pages 95-120, June.
    2. repec:onb:oenbwp:y:2010:i:1:b:1 is not listed on IDEAS
    3. Sándor Gardó, 2010. "Bank Governance and Financial Stability in CESEE: A Review of the Literature," Focus on European Economic Integration, Oesterreichische Nationalbank (Austrian Central Bank), issue 1, pages 6-31.
    4. Cesar Portalanza Chinguel, 2019. "Una nota sobre el gobierno corporativo en la industria bancaria," Revista de Análisis Económico y Financiero, Universidad de San Martín de Porres, vol. 1(03), pages 48-54.
    5. Baah Aye Kusi & Kwadjo Ansah-Adu & Rockson Sai, 2015. "Evaluating Bank Profitability in Ghana: A five step Du-Pont Model Approach," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 4(3), pages 69-82, July.

    More about this item

    Keywords

    return on equity; leverage ratio; profitability rate; Du Pont analysis; asset utilisation ratio;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:blg:reveco:v:67:y:2015:i:supplement:p:135-144. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Eduard Alexandru Stoica (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.