Bank Profitability Case Study

Words: 2652
Pages: 11
Open Document
Banks play very important roles in the economic development of nations as they will over supply of money in circulation and are the main stimuli of economic progress. Therefore, a strong banking sector is vital for growth, generating wealth and increasing Gross Domestic Product (GDP) growth. Dr. Dhanuskodi, 2012, said that bank performance is the reflection of the way in which the resources of a bank are used in a form which enables it to achieve its objectives. As a result, not all factors are related in contributing the bank profitability. Research is revealing that the performance of a bank was depended on certain factors and not same for all banks. This means that for Bank Rakyat, it have its own factors that will contribute to the bank …show more content…
However we have changed the independent variables as we make a combination from the past study did by Kok Yoke Teng et al., 2012, and Ezreena Jasmine et al., 2011 which indicating their independent variables relate with bank profitability. Thus the independent variables which are included in determining the outcome of the study are internal and external factors. Internal factor involves bank size, total deposits, total loans, operating expenses and non-performing loan which contribute to the bank profitability. External factors involve inflation rate and gross domestic product which contribute to the bank profitability. Meanwhile the dependent variable is the bank profitability which is measure by return of asset (ROA).

2.7 SIGNIFICANT OF THE …show more content…
The effect of a bank’s on its profit level is not uniform. These variables controls according to the size of each credit institution. Some of earlier studies have different results. The first factor could lead to a positive relationship between the bank size and profit level of the bank. A study that have been done significant to this are Davydenko.A,(2010) and Asma R.I. et al. (2011). Meanwhile, there were studies that insignificant relationship between bank size and bank profitability. A study that has been done which obtained the same result as this are Ezreena.J et al, (2011) and Imad Z.R et al.,
Show More

Related Documents: Bank Profitability Case Study

Essay Infinity Bank - Will the Supermarket Strategy Work?

Introduction Infinity bank was one of the 10 largest banks in the UK with over 1800 retail branches. However, due to the change in the nature of the banking industry since the 1980’s Infinity bank had seen a consistent drop in its profitability. Deregulation of the industry had been one of the major changes that had taken place during this time which had increased the competition in the industry. Even though Infinity had followed other major banks in responding to this challenge by cutting costs…

Words 2203 - Pages 9

Harvard Case Study Essay

Quentin SUBIRANA Paul [CUSTOMER PROFITABILITY AND CUSTOMER RELATIONSHIP MANAGEMENT AT RBC FINANCIAL GROUP (ABRIDGED). ] [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] 1) Evaluate RBC’s customer strategy. Unlike most banks, RBC Royal Bank has well understood the need to leverage…

Words 2962 - Pages 12

Strategic Management Accounting Literature Review

Table of Contents I. Introduction 1 II. Literature review of Strategic Management Accounting 1 III. The implication of strategic management accounting 5 3.1 The implication of customer profitability analysis techniques 5 3.2 The adoption of activity base costing 8 IV. Conclusion 10 References 10 List of Figures Figure 1 - Strategic Management Accounting - What Is the Current State of the Concept? (Juras, 2014) 5 I. Introduction Many organizations encounter various challenges because the rapid changing…

Words 4093 - Pages 17

Bioventure 20Inc Essays

# 1 Area GSRM 5 PM 6 A 9 A The student applies technical knowledge to case facts in discussing the operating risks associated with Bioventures Inc. The student applies technical knowledge to case facts in discussing the financial accounting issues. The student applies technical knowledge to case facts in discussing the problems with the prior year review engagement. The student applies technical knowledge to case facts in discussing the assurance issues. Review of Accounting Policies - Summative…

Words 2438 - Pages 10

J & K Bank Case Study

Government of India in view of the Narasimhan Committee report I and II, prudential standards were presented by Reserve Bank of India to address the credit observing procedure being received and sought after by the banks and monetary foundations. To fortify further the recuperation of duty by banks and budgetary organizations, Government of India declared The Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and The Securitisation and Reconstruction of Financial Assets and Enforcement…

Words 3775 - Pages 16

health and social care Essay examples

(Question 2 July 2012) INTRO ‘Wholesale banking is a collective term that, as its name would imply, refers to the bank-to-bank markets and instruments, often termed the inter-bank market. More often this definition is extended nowadays to include any inter-financial institution dealings including those of hedge funds and other investment companies. (S James 2008) Most of Britain's big banks split 50:50 between wholesale and retail funding. The Nationwide receives 75 per cent of its funding from retail…

Words 881 - Pages 4

Generally Accepted Accounting Principles and Financial Statements Essay

the sources available is discussed further to find out whether that particular finance is correct or not. Income statement and a statement of financial position were extracted from the data provided. Financial calculation of company regarding profitability, efficiency and liquidity has been defined and this important has been described and calculated in the report. Furthermore, performance indicator ratios are sub-categorized to get the extract of financial position of the business. SOURCE OF…

Words 1314 - Pages 6

Exam I Review Information Essay examples

Suggested Study Topic ACCT 3309, Exam I Class I: Understand what a general ledger is and how it is used in the accounting process. The database of accounting information. A company's main accounting records. A general ledger is a complete record of financial transactions over the life of a company. The ledger holds account information that is needed to prepare financial statements, and includes accounts for assets, liabilities, owners' equity, revenues and expenses. What are the three primary…

Words 1176 - Pages 5

assignment 2 Essay

corporate, where in some corporations, corporate social responsibility is considered as a priority that is managed closely, comparable to HR issues or public relations, while in other corporations its kept to a bare minimum. Ethics (lack of) In the case study, Becton Dickinson, the world’s largest manufacturer of medical supplies did not have clear corporate social responsibility strategy with a long term view, and instead chose not to change the design of its needles and syringes, despite the growing…

Words 1052 - Pages 5

Essay about Easter School Questions

Year 12/13 BSO3 Task 1 Read and annotate the case study and answer the following questions – use and QUOTE the case study for evidence in your answers. 1. Identify the resources that Sheena will need to set up her business and run her business. Include a. Financial: An airfield to use as her base, father buy shares, her inheritance, loan from the bank, money to maintain the helicopter, still has a job, an accountant for the business b. Physical: The helicopter c. Human: Skilled people for mechanical…

Words 894 - Pages 4