Research the bank – specific factors affecting the profitability of joint-stock commercial bank in Vietnam
Abstract
The objective of this paper is to identify the bank specific variables that affect the profitability of commercial banks of joint - stock commercial banks in Viet Nam in the period of 2012 - 2018. This is the period with a great change in the world economy in general and the banking industry in particular. The banking industry has many changes and development after the global financial crisis in 2008. For this purpose, reports in the financial year over the period of 2012 - 2018 of 28 Vietnamese commercial banks were selected as a research sample for the authors group to give evaluations and draw a conclusion. The research group selected ROA (Return on assets) and ROE (return on equity) as a dependent variable for the regression model with 6 independent variables including: bank size (SIZE), gearing ratio (GR), assets quality (AQ), liquidity ratio (LR), operating expense ratio (OER) and credit risk ratio (CRR). The results show that SIZE and OER are positively correlated with ROA and ROE, GR impacts on two variables: positive direction on ROE and negative direction on ROA, while AQ has negative correlation only with ROE. Two variables, LR and CRR don’t affect profitability. The results of this research can help shareholders of Vietnam ese Commercial Bank, government, investors, etc. to make the right decision and improve the quality of operation in the future.