Title: Determinants of bank profitability: empirical research on Lithuanian market

Authors: Viktorija Skvarciany; Daiva Jurevičienė; Mangirdas Morkunas

Addresses: Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Sauletekio ave. 11, LT-10223, VIlnius, Lithuania ' Department of Economics Engineering, Faculty of Business Management, Vilnius Gediminas Technical University, Sauletekio ave. 11, LT-10223, VIlnius, Lithuania ' Faculty of Economics and Business, Mykolas Romeris University, Ateities str. 20, LT-08303 Vilnius, Lithuania

Abstract: The goal of the current paper is to identify which general services provided by commercial banks are vital for banks' profitability. In the present research, profitability is expressed by return on assets and return on equity. The following general determinants that are analysed in the context of general information of banking sector, influencing profitability were examined: number of branches, number of automated teller machines (ATMs), number of internet banking users, number of mobile banking users, and number of debit cards, number of credit cards, the total number of payment cards, and number of point-of-sale (POS) terminals. The results of the research showed that the number of POS does not influence the profitability of commercial banks, while other independent variables affect at least one profitability measure.

Keywords: profitability; return on assets; return on equity; general commercial banks services.

DOI: 10.1504/IJEPEE.2019.104637

International Journal of Economic Policy in Emerging Economies, 2019 Vol.12 No.5, pp.443 - 452

Received: 31 Jul 2018
Accepted: 21 Apr 2019
Published online: 24 Jan 2020 *

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