Naslov
Influence of Banks Balance Sheet Structure on Profitability

Autori
Jakaša, Petra

Vrsta, podvrsta i kategorija rada
Sažeci sa skupova, sažetak, znanstveni

Izvornik
ISER International Conference on Contemporary Issues in Management, Business, Economics, Social Sciences & Humanities (CIMBH) / - , 2019, 13-13

Skup
ISER International Conference on Contemporary Issues in Management, Business, Economics, Social Sciences & Humanities (CIMBH)

Mjesto i datum
Rim, Italija, 24.04.2019. - 25.04.2019

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
banks profitability, balance sheet structure, loans, deposits

Sažetak
The aim of this paper is to investigate the influence of bank’s balance sheet structure on profitability. Bank’s balance sheet reflects its specific function as an economy intermediary, but varies significantly between banks due to their strategy, market position, available sources of financing or other internal and external factors. For the purpose of this paper balance sheet structure is measured with received loans to assets ratio (LTA), total equity ratio (ER), given loans to total assets (GLTA) and financial assets to total assets (FATA). These are independent variables in this research reflecting assets structure and structure of sources of financing. Loans to deposit ratio (LDR) and deposits to assets ratio (DAR) were excluded from the research due to correlation. Profitability is measured with return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The sample covered by the analysis comprises of all Croatian banks that were active in year 2018, excluding housing saving banks. Statistical analysis (regression) reveal that regarding assets structure “given loans to total assets ratio” have statistically significant and positive influence on ROA and NIM, while other ratios don’t have statistically significant influence. On the other hand, within structure of financing sources only “loans to total assets ratio” have significant and negative influence on ROA, while equity ratio has no influence on profitability. Analysis showed that balance sheet structure has no effect on ROE. Overall balance sheet structure partially explains profitability movements and author’s other research and literature overview show that there are some other variables, such is size, ownership, value adjustments or market interest rates influencing profitability movements in Croatian banks.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA