Business Commons^™

Bank Specific Determinants Of Profitability In Turkish Banks, Ahmet Karakuza

Master's Theses

This paper examines the profitability of Turkish commercial banks during the period 2005 – 2014. We use bank – specific determinants to predict the following years’ profitability measured by return on assets (ROA). Among the performance measures, the amount of net interest income as a proportion of total operating income is positive related to profitability. It remains important for banks to loan money out at a rate higher than their cost of capital. Non-interest income as a proportion of total assets is strongly positively related to profitability. Consumer loans as a proportion of total loans is negatively related to profitability. …