THE FINANCIAL PERFORMANCE OF COMMERCIAL BANKS LISTED AND TRADED ON BUCHAREST STOCK EXCHANGE

RODEAN Maria-Daciana, Lucian Blaga University of Sibiu

Abstract:
Even though banks are playing the role of financial intermediaries, their main objective is to obtain profit. The most commonly used indicator of the profitability assessment, according to the shareholder vision is represented by the return on equity. This study has focused on achieving a factor analysis on financial profitability obtained by the top three commercial banks by using the Du Pont. The purpose of this analysis was to identify the causes rate developments. The analysis was done over a period of eight years, respectively from 2007 since 2014. Data were taken from the financial statements published by the three credit institutions. The results have demonstrated that banks in order to improve the indicator need to maintain the leverage ratio fixed either to reduce capital costs. The decrease in profitability rate determined the downward trend registered by the return on equity.

Keywords: return on equity, leverage ratio, profitability rate, Du Pont analysis, asset utilisation ratio

JEL Classification: G32

Volume: 67, Issue: Supplement

Pages: 135 - 144

Publication date: September, 2015

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/67S13rodean.pdf

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