Factors Affecting Bank Profitability in Türkiye

Tomak, Serpil

The purpose of this study is to examine the factors affecting commercial bank profitability in Türkiye using panel data analysis for the period 2012-2023. In this framework, there are 240 observations of 20 deposit banks in the analysis. Return on assets (ROA) and return on equity (ROE) are used as an indicator of profitability and dependent variables. The results of the analysis show that bank-specific determinants such as bank size, equity size and non-performing loans play a significant impact on bank profitability. The only macroeconomic factors affecting bank performance is the inflation. Bank size, equity size and inflation play significant and positive role in explaining bank profits, while the effect of non-performing loans is negative. It means that the high profitability of Turki...