Revisiting bank profitability, performance and stability in Asia Pacific (2012-2018) using the EAGLES framework

Dang, Duong Quy; Vong, John

doi:10.1504/ijef.2020.110301

Cited by 5 publications

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“…Hence, the concern and interest in EAGLES Model emerged for evaluating the financial performance of the banks. Thus, the paper also tried to evaluate the performance of the Nepalese commercial banks using the EAGLES Model developed by Dang and Vong (2020). Balachandher et al (2015) found that an evaluation of the Malaysian banks' performance parameters under the EAGLES model will give a proper insight into the banks' financial status in the due process of the initial stage of the merger process.…”

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confidence: 99%

Evaluating Nepalese Commercial Banks’ Performance from the Eyes of EAGLES Rating

Vaidya

2023

Khwopa J.

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The paper aimed to evaluate the performance of the Nepalese commercial banks using the EAGLE rating model developed by Vong (1994) based on the bank's earning ability ratio, assets quality ratio, growth rate, liquidity, and equity to which an acronym as EAGLE. Vong and Song (2015) added the 'S' element afterward under EAGLE, renaming EAGLES. The strategy response quotient (S) shows management's capacity to set deposit and loan rates and to control a bank's interest burden, calculated as non-interest income minus any overhead costs. The paper considered the financial information of all the commercial banks operating in Nepal from 2018-19 to 2020-21. The paper found that the banks with a short history in the Nepalese banking industry with aggressive market expansion were at the top of the position under the EAGLES rating. The paper also found that ranking for return on equity (E) and ranking for non-performing loan ratio (A) and ranking for return on equity (E), and ranking for capital adequacy ratio (E) have a significant relationship while determining the ranking of the commercial banks. Similarly, the paper found that the bank with a better position for all the components of EAGLES was at the top for the government-owned commercial banks, while for joint venture banks, the bank with better loan growth, liquidity position, and capital structure was at the top.

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Section: Introductionmentioning

confidence: 99%

Evaluating Nepalese Commercial Banks’ Performance from the Eyes of EAGLES Rating

Vaidya

2023

Khwopa J.

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Determinants Of Profitability Of 10 Big Banks In Indonesia With Eagles Analysis

Ristanti

Ismiyanti

2021

jbmp

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This study aims to identify the determinants of profitability of the 10 largest banks in Indonesia over 10 years (2010 to 2019). These 10 banks were selected because they are the beacon of health to the national banking sector and the economy. The EAGLES framework was applied to the analysis. A multiple regression equation was formulated using SPSS software to analyze the strength of correlation of nine independent financial indicators to the dependent variable, return of assets (ROA). These financial indicators are listed as Non-Performing Loan (NPL), Non-Performing Loan Growth (NPLG), Loan Growth (LG), Deposit Growth (DG), Staff Cost Growth (SCG), Loan Deposit Ratio (LDR), Capital Adequacy Ratio (CAR), Net Interest Margin (NIM), and Net Interest Margin / Net Operating Cost (NIM-NOC). The analysis found four independent financial indicators that are statistically significant as having a strong association with the ROA. The contribution of the finding is that the Indonesian banks can be guided to focus on these four indicators on their management dashboard to steer their profitable growth. Another contribution is that the central bank authorities can also be informed of these same indicators as a tool to manage the safety of the Indonesian banking sector.

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Determinants of Bank Profitability: Case of Latvia

Krumina

Lejniece

Skvarciany

2020

Economics and Culture

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Research purpose. The goal of the current paper is to investigate the impact of internal factors on bank performance. All the performance indicators and explanatory factors have been distinguished from the scientific literature.Design/methodology/approach. To investigate if there was an effect of the distinguishing factors on Latvian banks’ performance, correlation-regression analysis was applied. To test the developed models’ accuracy, determination coefficient, Durbin–Watson coefficient, variance inflation factor (VIF), Cook’s distance and p-value were computed.Findings. The findings revealed that there was a relationship between all the dependent and independent factors, except return on assets (ROA) and return on equity (ROE). ROA has a significant positive relationship only with net commission income, and ROE, with net interest margin and net commission income. Moreover, two regression models were developed and showed that total assets and number of automated teller machines (ATMs) affect the profitability, represented by earnings before interest, taxes, depreciation, and amortization (EBIDTA) and bank value.Originality/value/practical implications. The current findings contribute to the scientific literature dealing with commercial banks’ performance issue and could be used by the banks to develop strategies for maximising profitability.

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Revisiting bank profitability, performance and stability in Asia Pacific (2012-2018) using the EAGLES framework

Cited by 5 publications

References 0 publications

Evaluating Nepalese Commercial Banks’ Performance from the Eyes of EAGLES Rating

Evaluating Nepalese Commercial Banks’ Performance from the Eyes of EAGLES Rating

Determinants Of Profitability Of 10 Big Banks In Indonesia With Eagles Analysis

Determinants of Bank Profitability: Case of Latvia

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