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Affin Bank Performance: Relationship Liquidity Ratio, Leverage Ratio and GDP to Profitability

Author

Listed:
  • Samsuri, Nurhazimah

Abstract

The purpose of this study sought to examine the overall performance of Affin Bankwith Current ratio, Operating efficiency ratio and Gross domestic product on profitability performance. The data obtained from annual report Affin Bank starting from 2011 until 2015. The measurement of liquidity ratio and operating ratio used to see the overall performance ofAffin Bank in 5 years which allegedly beyond benchmark. The further depth is the asset size; this variable has a negative and no significant relationship with liquidity risk. To see the relationship of these three components to the gainfulness, this paper is using liquidity (current proportion), GDP and working productivity proportion. Data was evaluated by operating regression and correlation. The regression analysis and bicariate correlation shows only one factor of profitability is significant to return on asset which is current ratio with the highest impact to the profitability. However, the liquidity, GDP and operating efficient is not significant to profitability.

Suggested Citation

  • Samsuri, Nurhazimah, 2017. "Affin Bank Performance: Relationship Liquidity Ratio, Leverage Ratio and GDP to Profitability," MPRA Paper 78545, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78545
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    References listed on IDEAS

    as
    1. Waeibrorheem Waemustafa & Azrul Abdullah, 2015. "Mode of Islamic Bank Financing: Does Effectiveness of Shariah Supervisory Board Matter?," Post-Print halshs-01509026, HAL.
    2. Waeibrorheem Waemustafa & Suriani Sukri, 2016. "Systematic and Unsystematic Risk Determinants of Liquidity Risk Between Islamic and Conventional Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 6(4), pages 1321-1327.
    3. Waeibrorheem Waemustafa & Suriani Sukri, 2015. "Bank Specific and Macroeconomics Dynamic Determinants of Credit Risk in Islamic Banks and Conventional Banks," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 476-481.
    4. Omar Durrah & Abdul Aziz Abdul Rahman & Syed Ahsan Jamil & Nour Aldeen Ghafeer, 2016. "Exploring the Relationship between Liquidity Ratios and Indicators of Financial Performance: An Analytical Study on Food Industrial Companies Listed in Amman Bursa," International Journal of Economics and Financial Issues, Econjournals, vol. 6(2), pages 435-441.
    5. Flannery, Mark J, 1981. "Market Interest Rates and Commercial Bank Profitability: An Empirical Investigation," Journal of Finance, American Finance Association, vol. 36(5), pages 1085-1101, December.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Current Ratio; Liquidity ratio; Operating Efficiency Ratio; GDP;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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