Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa
This study investigates the determinants of banking sector profitability in South Africa, Nigeria and the United States. The findings reveal that cost efficiency, the size of non-performing loans and overhead cost to total asset ratio are significant determinants of the banking sector profitability....
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| Format: | Article |
| Language: | English |
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UUM Press
2021
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| Online Access: | https://repo.uum.edu.my/id/eprint/29222/1/IJBF%2016%2001%202021%2055-78.pdf |
| _version_ | 1803629607076757504 |
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| author | Ozili, Peterson K |
| author_facet | Ozili, Peterson K |
| author_sort | Ozili, Peterson K |
| collection | UUM |
| description | This study investigates the determinants of banking sector profitability in South Africa, Nigeria and the United States. The findings reveal that cost efficiency, the size of non-performing loans and overhead cost to total asset ratio are significant determinants of the banking sector profitability. In the comparative analysis, the findings from South Africa show that the cost efficiency ratio, overhead cost to total asset ratio and non-performing loans are significant determinants of the banking sector profitability. In the United States, capital adequacy ratio and the size of non-performing loans are significant determinants of its banking sector profitability. In Nigeria, the overhead cost to total asset ratio and cost efficiency ratio are significant determinants of the banking sector profitability. The descriptive analysis reveal that bank net interest margin and return on asset are higher in Nigeria and lowest in the United States which suggests that the Nigerian banking sector is more profitable than the US banking sector. Return on equity is higher in South Africa and lowest in the United States. |
| first_indexed | 2024-07-04T06:40:32Z |
| format | Article |
| id | uum-29222 |
| institution | Universiti Utara Malaysia |
| language | English |
| last_indexed | 2024-07-04T06:40:32Z |
| publishDate | 2021 |
| publisher | UUM Press |
| record_format | dspace |
| spelling | uum-292222023-03-05T08:44:44Z https://repo.uum.edu.my/id/eprint/29222/ Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa Ozili, Peterson K HG Finance This study investigates the determinants of banking sector profitability in South Africa, Nigeria and the United States. The findings reveal that cost efficiency, the size of non-performing loans and overhead cost to total asset ratio are significant determinants of the banking sector profitability. In the comparative analysis, the findings from South Africa show that the cost efficiency ratio, overhead cost to total asset ratio and non-performing loans are significant determinants of the banking sector profitability. In the United States, capital adequacy ratio and the size of non-performing loans are significant determinants of its banking sector profitability. In Nigeria, the overhead cost to total asset ratio and cost efficiency ratio are significant determinants of the banking sector profitability. The descriptive analysis reveal that bank net interest margin and return on asset are higher in Nigeria and lowest in the United States which suggests that the Nigerian banking sector is more profitable than the US banking sector. Return on equity is higher in South Africa and lowest in the United States. UUM Press 2021 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/29222/1/IJBF%2016%2001%202021%2055-78.pdf Ozili, Peterson K (2021) Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa. International Journal of Banking and Finance (IJBF), 16 (1). pp. 55-78. ISSN 2590-423X https://doi.org/10.32890/ijbf2021.16.1.4 |
| spellingShingle | HG Finance Ozili, Peterson K Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title | Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title_full | Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title_fullStr | Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title_full_unstemmed | Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title_short | Bank Profitability Determinants: Comparing the United States, Nigeria and South Africa |
| title_sort | bank profitability determinants comparing the united states nigeria and south africa |
| topic | HG Finance |
| url | https://repo.uum.edu.my/id/eprint/29222/1/IJBF%2016%2001%202021%2055-78.pdf |
| work_keys_str_mv | AT ozilipetersonk bankprofitabilitydeterminantscomparingtheunitedstatesnigeriaandsouthafrica |