The Determinants on The Profitability of Commercial Banks: The case of Vietnam in the period 2007-2019

Abstract

Banks make an important contribution to Vietnam's economy therefore, increasing the bank's profitability is important to increasing the bank's operating ability. This thesis investigates the factors that influence bank profitability and how these factors are correlated to profitability. This study was conducted using data from 30 banks in Vietnam from the period 2007 to 2019. The panel data method was applied to summarize the results of the article. Our results shows that all five factors: bank sizes, loan ratios, cost ratios, equity to asset ratios and non-performing loans have a significant effect on profitability (ROE).