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The Financial Performance Of Commercial Banks Listed And Traded On Bucharest Stock Exchange

Author

Listed:
  • 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.

Suggested Citation

  • RODEAN Maria-Daciana, 2015. "The Financial Performance Of Commercial Banks Listed And Traded On Bucharest Stock Exchange," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 67(Supplemen), pages 135-144, September.
  • Handle: RePEc:blg:reveco:v:67:y:2015:i:supplement:p:135-144
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/suplimente/67S13rodean.pdf
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    References listed on IDEAS

    as
    1. Christian Harm, 2002. "Bank management between shareholders and regulators," SUERF Studies, SUERF - The European Money and Finance Forum, number 21 edited by Morten Balling, May.
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    More about this item

    Keywords

    return on equity; leverage ratio; profitability rate; Du Pont analysis; asset utilisation ratio;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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