Session

Management, Business and Economics

Description

The paper analyses different indicators ROA, ROE, net interest margin, net noninterest margin /fees and commissions/, deposit growth, credit growth, as well as the ratios Loans-to-Deposits, Own Capital-to-Assets and the main components of the asset side of the balance sheet as loans, financial instruments and monetary funds for the large and medium-sized and small banks in Bulgaria. These indicators are analyzed individually for each bank but conclusions are drawn on the group level – large banks and medium-sized and smaller banks. The analysis show that the bigger banks have higher ROA and ROE for the analyzed period compared with the medium-sized and small banks. The paper investigates the factors for the weak correlation between GDP as well as other indicators for both types of banks. In Bulgaria are main financial intermediaries and they hardly have an alternative in the economy as a channel for accumulating savings and granting loans. The paper investigates the factors for the weak correlation between the GDP growth and ROA and ROE as well as the net interest margin and net non-interest margin for the bigger and medium-sized and small banks. Some comparisons and peculiarities are drawn regarding profitability and efficiency of the five biggest banks in the country and the medium-sized and small ones.

Keywords:

Banks, Profitability, Efficiency

Session Chair

Edmond Hajrizi

Session Co-Chair

Armend Muja

Proceedings Editor

Edmond Hajrizi

ISBN

978-9951-437-69-1

First Page

153

Last Page

158

Location

Pristina, Kosovo

Start Date

27-10-2018 1:30 PM

End Date

27-10-2018 3:00 PM

DOI

10.33107/ubt-ic.2018.305

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Oct 27th, 1:30 PM Oct 27th, 3:00 PM

Profitability and Efficiency of the Bulgarian Banks – Large, Medium-Sized and Small Banks

Pristina, Kosovo

The paper analyses different indicators ROA, ROE, net interest margin, net noninterest margin /fees and commissions/, deposit growth, credit growth, as well as the ratios Loans-to-Deposits, Own Capital-to-Assets and the main components of the asset side of the balance sheet as loans, financial instruments and monetary funds for the large and medium-sized and small banks in Bulgaria. These indicators are analyzed individually for each bank but conclusions are drawn on the group level – large banks and medium-sized and smaller banks. The analysis show that the bigger banks have higher ROA and ROE for the analyzed period compared with the medium-sized and small banks. The paper investigates the factors for the weak correlation between GDP as well as other indicators for both types of banks. In Bulgaria are main financial intermediaries and they hardly have an alternative in the economy as a channel for accumulating savings and granting loans. The paper investigates the factors for the weak correlation between the GDP growth and ROA and ROE as well as the net interest margin and net non-interest margin for the bigger and medium-sized and small banks. Some comparisons and peculiarities are drawn regarding profitability and efficiency of the five biggest banks in the country and the medium-sized and small ones.