Title: Banking dynamics in MENA: a study on profit catalysts

Authors: Iman S. Youssef; Charbel Salloum; Adel F. Al Alam

Addresses: New Giza University, Cairo, Egypt ' Metis Lab, EM Normandie Business School, Le Havre, France ' USEK Business School, USJ, Saint Joseph University, Lebanon

Abstract: This study aims to investigate the managerial determinants of publicly listed banks' performance in the Middle East and North Africa (MENA) region, specifically focusing on the distinction between oil-exporting and oil-importing countries. The research covers the period from 2011 to 2021 and includes selected countries such as Kuwait, Saudi Arabia, United Arab Emirates (oil-exporting), Egypt, Lebanon, and Morocco (oil-importing). By utilising dynamic panel data estimation techniques, two models are developed with return on assets (ROA) and net interest margin (NIM) as dependent variables. Bank-specific independent variables, including size, liquidity, credit risk, and capital adequacy, are analysed along with macroeconomic variables such as GDP and inflation. Data from Thomson Reuters Data Stream for 97 publicly listed banks in the MENA region are employed, and the pooled least squares (OLS), fixed effects (FEM), and random effects (REM) methods are used for data analysis. The empirical findings reveal significant variations in the relationship between selected variables and banks' profitability, indicating the importance of understanding the determinants of banks' performance for stakeholders and bank executives to make informed decisions.

Keywords: performance; credit risk; capital adequacy; banks; Middle East and North Africa; MENA; return on assets; ROA; net interest margin; NIM.

DOI: 10.1504/IJMFA.2025.142939

International Journal of Managerial and Financial Accounting, 2025 Vol.17 No.1, pp.13 - 35

Received: 22 May 2023
Accepted: 14 Sep 2023
Published online: 02 Dec 2024 *

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