Bank Profitability Determinants: The Case of Bangladesh

Mohammad Nayeem Abdullah, Tarana Karim, Rahat Bari Tooheen and Taklima Nasreen Chowdhury

The study seeks to explore bank profitability as an indicator of economic stability in a developing country setting. This study examines the profitability determinants of listed private commercial banks on the Chittagong Stock Exchange (CSE). Data was compiled and analyzed from secondary sources of information. This paper applies Trend Analysis, Standard Deviation, Correlation and Regression as the statistical tools for the analysis.Information was gathered on Deposits, Advances, Total Assets, Equity, Net Income, Number of Branches, Number of Employees and Non-Performing Loans. The results demonstrate that Deposits, Advances, Total Assets, Equity and Net Income have significant impacts on bank profitability. Significance of the profitability determinants is also found to vary among generation wise private commercial banks.