Determinants of Return on Assets


The aim of this research is to identify the factors impacting the return on assets of privately owned deposit banks in Turkiye and to examine these banks by comparing their net profits, total assets, loans, deposits and non-interest incomes. Equity, deposit, loan, liquidity and non-interest income ratios were used as factors affecting the return on assets. Panel data analysis was made by applying R-Studio Program. According to analysis results, it was determined that the liquidity and non-interest income ratio had a positive impact on the return on assets. It was concluded that the negative impact of equity on return on assets.
  1. Almumani, M.A. (2013). Impact of Managerial Factors on Commercial Bank Profitability: Empirical Evidence from Jordan. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(3), 298-310.  |   Google Scholar
  2. Almazari, A.A. (2014). Impact of Internal Factors on Bank Profitability: Comparative Study between Saudi Arabia and Jordan. Journal of Applied Finance & Banking, 4(1), 125-140.  |   Google Scholar
  3. Ani, W.U., Ugwunta, D.O., Ezeudu, I.J. & Ugwuanyi, G.O. (2012). An empirical assessment of the deerminants of bank profitability in Nigeria: Bank characteristics panel evidence. Journal of Accounting and Taxation, 4(3), 38-43.  |   Google Scholar
  4. Ana, K., Blanka, S. & Roberto, E. (2011). Determinants of Bank Profitability in Croatia. Croatian Operational Research Review, 2, 168-182.  |   Google Scholar
  5. Anarfi, D., Abakah, E.J.A. & Boateng, E. (2016). Determinants of Bank Profitability in Ghana: New Evidence. Asian Journal of Finance&Accounting, 8(2), 194-204.  |   Google Scholar
  6. Bhatia, A., Mahajan, P. & Chander, S. (2012). Determinants of Profitability of Private Sector Banks in India. Indian Journal of Accounting, XLII(2), 39-51.  |   Google Scholar
  7. Brigham, E.F. & Houston, J.F. (2012). Fundamentals of Financial Management, Ratio of Profitability (7th ed, pp.108-124). USA: South Western Cengage Learning.  |   Google Scholar
  8. Boateng, K. (2018). Determinants of Bank Profitability: A Comparative Study of Indian and Ghanaian Banks. Journal of Emerging Technologies and InnovativenResearch, 5(5), 643-654.  |   Google Scholar
  9. Cornett, M.M., Adair, T.A. & Nofsinger, J. (2014). Finance, Analysis of Financial Statements (2 nd ed, pp.50-66). NY: McGraw-Hill/Irwin.  |   Google Scholar
  10. Doan, T.T. & Bui, T.N. (2021). How does liquidity influence bank profitability? A panel data approach. Accounting, 7, 59-64.  |   Google Scholar
  11. Gul, S., Irshad, F. & Zaman, K. (2011). Factors affecting bank profitability in Pakistan. The Romanian Economic Journal, XIV(39), 61-87.  |   Google Scholar
  12. Holden, K. & El-Bannany, M. (2004). Investment in information technology systems and other determinants of bank profitability in the UK. Applied Financial Economics, 14, 361-365.  |   Google Scholar
  13. Kawshala, H. & Panditharathna, K. (2017). The Factors Effecting on Bank Profitability. International Journal of Scientific and Research Publications, 7(2), 212-216.  |   Google Scholar
  14. Lipunga, A.M. (2014). Determinants of Profitability of listed commercial banks in developing countries:Evidence from Malawi. Researches Journal of Finance and Accounting, 5(6), 41-49.  |   Google Scholar
  15. Nimer, M.A., Warrad, L. & Omari, R.A. (2015). The impact of Liquidity on Jondanian Banks Profitability through Return on Assets. European Journal of Business and Management, 7(7), 229-232.  |   Google Scholar
  16. Rahman, M.M., Hamid, K. & Khan, A.M. (2015). Determinants of Bank Profitability: Empirical Evidence from Bangladesh. International Journal of Business and Management, 10(8), 135-150.  |   Google Scholar
  17. Ramlan, H. & Adnan, S. (2016). The Profitability of Islamic and Conventional Bank: Case study in Malaysia. Procedia Economics and Finance, 35, 359-367.  |   Google Scholar
  18. Sufian, F. & Chong, R.R. (2008). Determinants of Bank Profitability in A Developing Economy: Empirical Evidence From The Philippines. Asian Academy of Management Journal of Accounting and Finance, 4(2), 91-112.  |   Google Scholar
  19. San, O.T. & Heng, T.B. (2013). Factors affecting the profitability of commercial banks. African Journal of Business Management, 7(8), 649-660. DOI: 10.5897/AJBM11.548.  |   Google Scholar
  20. Saeed, M.S. (2014). Bank-related, industry-related and macroeconomic factors affecting bank profitability: A case of the United Kingdom. Researches Journal of Finance and Accounting, 5(2), 42-50.  |   Google Scholar
  21. The Banks Association of Turkiye, Statistical Reports. Retrieved March 10, 2023, from  |   Google Scholar
  22. Zhang,C.& Dong, L. (2011). Determinants of Bank Profitability: Evidence from the U.S.Banking Sector. Retrieved November 15, 2022, from  |   Google Scholar
  23. Weersainghe, V.E.I.W. & Perera, T.R. (2013). Determinantsof Profitability of Commercial Banks in Sri Lanka. International Journal of Arts and Commerce, 2(10), 141-170.  |   Google Scholar


Download data is not yet available.

How to Cite

Karadayi, N. (2023). Determinants of Return on Assets. European Journal of Business and Management Research, 8(3), 37–44.

Search Panel

 Nilgun Karadayi
 Google Scholar |   EJBMR Journal