Determinants of Bank Profitability in Ghana: New Evidence

Anarfi, Daniel; Abakah, Emmanuel Joel Aikins; Boateng, Eunice

doi:10.5296/ajfa.v8i2.10274

Cited by 12 publications

(13 citation statements)

References 8 publications

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“…The results of this study are in accordance with the research of Anarfi, D, who found that the cost of overhead negatively affects ROA. But not in accordance with the results of research from Nouaili, et al, who found no effect of efficiency on ROA [1,16].…”

Section: Resultscontrasting

confidence: 57%

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An Empirical Study of Commercial Banks Performance: The Indonesian context

Puspitasari¹,

Desfadlika²,

Sudiyatno³

et al. 2019

Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)

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The bank's performance is the achievement of the bank's operational activities in using its resources. The purpose of this study is to test the performance of banks listed on the Indonesia Stock Exchange. The data used is secondary data, which is obtained by purposive sampling method, and data analysis using multiple regression methods. The result shows that the Capital Adequacy Ratio, Operating Costs, and Loan to Deposit Ratio have a negatively and significantly influence to Return on Asset. The interest rate has a positive affect and significant. While Non-Performance Loan and the Inflation Rate is not a significant determinant of the performance of Return on Assets in Indonesian Banks.

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Section: Resultscontrasting

confidence: 57%

“…Other studies related to bank performance using variable Capital Adequacy Ratio (CAR), Loan Deposit Ratio (LDR), Operating Income Operating Costs (BOPO), Non Performance Loans (NPL), Inflation, and Interest Rates have also been done previously [1][2][3][4][6][7][8][9][10][11][12][13][14][15][16], although the results are still different.…”

Section: Introductionmentioning

confidence: 99%

An Empirical Study of Commercial Banks Performance: The Indonesian context

Puspitasari¹,

Desfadlika²,

Sudiyatno³

et al. 2019

Proceedings of the International Conference on Banking, Accounting, Management, and Economics (ICOBAME 2018)

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“…Furthermore, Alhassan et al (2016); Demirgüç-Kunt and Maksimovic (1998); Tunay and Silpar (2006); Lipunga (2014); Menicucci and Paolucci (2016) and Regehr and Sengupta (2016) also reached the same conclusion by using different methods in their studies. On the other side, Anarfi et al (2016) and Kolapo et al (2016) concluded that the size of the banks does not have any significant effect on bank profitability.…”

Section: Buchory (2015) Indonesia Regressionmentioning

confidence: 99%

Determinants of Profitability in the Banking Sector: An Analysis of Post-Soviet Countries

et al. 2018

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Abstract:The purpose of this paper is to identify the determinants of bank profitability in 13 post-Soviet countries. Within this scope, annual data between 1996 and 2016 is analyzed by using fixed effects panel regression and the Generalized Method of Moments (GMM). It is concluded that loan amount, non-interest income and economic growth are significant indicators of profitability. Moreover, the 2008 global mortgage crisis has a negative influence on bank profitability in post-Soviet countries. According to the estimation results, there is a positive relationship between non-interest income and economic growth with profitability. This result shows that when non-interest income of the banks increases, such as credit card fees and commission, it affects the financial performance of the banks, positively, and contributes to bank profitability. Another result of this study is that economic growth positively influences bank profitability. This result allows us to conclude that higher GDP comes with higher bank profitability for post-Soviet countries. Lastly, there is a negative relationship between loan-to-GDP ratio and profitability of the banks in post-Soviet countries. This means that when the ratio of total loans to GDP increases, it affects financial performance of the banks in a negative way. While considering this result, it is recommended that banks in post-Soviet countries should focus on ways to increase their non-interest income. Additionally, it is also significant for these banks to be careful and risk averse when lending to their customers.

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“…They reported that, crude oil price are negatively significant in determining bank profitability whereas total assets is positively significant in explaining bank profitability. Anarfi et al (2016) investigated some key determinants of bank-specific characteristics and macroeconomic indicators and the degree at which they affect banks' profitability in Ghana. The study employed a fixed and random effect model with data obtained from annual financial statements of 21 banks from 2007-2014.…”

Section: Background Of Cocoa Production and Marketing In Ghanamentioning

confidence: 99%