Title: Unlocking financial insights: decoding sentiment in annual reports to transform bank risk and performance metrics

Authors: Anna Pilková; Slavka Elley; Michal Munk; Lívia Kelebercová; Petra Blažeková

Addresses: Comenius University in Bratislava, Odbojárov 10, SK 82005 Bratislava, Slovakia ' Comenius University in Bratislava, Odbojárov 10, SK 82005 Bratislava, Slovakia ' Constantine the Philosopher University in Nitra, Tr. A. Hlinku 1, SK 94901 Nitra, Slovakia; Faculty of Economics and Administration, Science and Research Centre, University of Pardubice, Studentska 84, 53210, Pardubice, Czech Republic ' Constantine the Philosopher University in Nitra, Tr. A. Hlinku 1, SK 94901 Nitra, Slovakia ' VÚB, a.s., Enterprise Risk Management, Mlynské nivy 1, 829 90, Bratislava, Slovakia

Abstract: One of outstanding issues of Pillar 3 information disclosure is to increase the relatively low interest of stakeholders of commercial banks operating in the CEE region in Pillar 3 information. The aim of this paper is to investigate the relations between the sentiment expressed in different sections of annual reports and the performance and risk indicators, disclosed as part of the Pillar 3 disclosures, of a commercial bank operating in CEE country. We examined risk and performance indicators in the context of textual disclosures of six sections of the annual reports. We found out that sections the supervisory board and board of directors presented the weakest dependence followed by external environment and results. The strongest dependence has been found in sections assessment and information on expected economic and financial situation in upcoming year.

Keywords: sentiment analysis; annual reports of the bank; banking performance indicators; banking risk indicators.

DOI: 10.1504/IJSTM.2025.149170

International Journal of Services Technology and Management, 2025 Vol.30 No.2/3, pp.182 - 197

Received: 25 Dec 2023
Accepted: 15 Jun 2024
Published online: 16 Oct 2025 *

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