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Analysis of the determinants of bank profitability in the context of Ireland during the period of 2012-2018: national vs. foreign banks

Sanginova, Munira (2019) Analysis of the determinants of bank profitability in the context of Ireland during the period of 2012-2018: national vs. foreign banks. Masters thesis, Dublin, National College of Ireland.

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Abstract

The aim of the present study is to determine the bank-specific, industry-specific and macro-specific determinants’ impact of on the profitability indicators – Return on assets and Net Interest Margin of Irish retail banks for the post crisis period of 2012 - 2018.

The research sample includes data of Irish and Non-Irish retail banks, which were collected from banks’ annual and semi-annual reports published on their official websites. Determinants indicators were collected from the Central Statistics Office of Ireland, European Central Bank and Statistical Data Warehouse. A multiple linear regression model was used for the purposes of the study. The empirical analysis covers the post crisis period of 2012-2018. Banks were divided into three groups: first - group of all bank samples together; second - Irish main retail banks with headquarters in Ireland, third - Non-Irish banks from euro area working in Ireland. The results are presented in tables and comparison analysis is provided.

Although there are many studies conducted in order to explain the impact of determinants on bank profitability from different angels, the present study is based on empirical analysis about bank profitability determinants in the context of Ireland. The research covers after crisis recovering period. Within the present research the author investigates whether such determinants as Common Equity Tier 1, specifically attributable to the Irish post crisis environment. Also, this research investigates whether other macroeconomic factors such as economic growth, inflation, bank concentration, and EURIBOR determine bank profitability, measured as Return on Assets and Net Interest Margin. The new determinant Residential Property Price Index is tested for being also one of the determinants of bank profitability in Ireland. In addition, this study provides a literature review of the relevant theoretical and empirical studies.

Item Type: Thesis (Masters)
Subjects: H Social Sciences > HG Finance
H Social Sciences > HG Finance > Banking
H Social Sciences > Economics > Macroeconomics
Divisions: School of Business > Master of Science in Finance
Depositing User: CAOIMHE NI MHAICIN
Date Deposited: 21 Oct 2019 12:32
Last Modified: 21 Oct 2019 12:32
URI: http://trap.ncirl.ie/id/eprint/3980

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