Authors : May Wahdan and Walid El Leithy
Abstract: The banking sector in Egypt as well as worldwide is considered to be the backbone of trade and business; it is considered to be the main source of finance for most of the economic activities. However, the determinants of banks financial performance are not indicated in a specified model. Therefore, to ensure a better financial performance for the sector, determinants of banks profitability in Egypt should be studied and specified in a clear model to further enhance performance and add value to the Egyptian economy. Accordingly, this study aims to specify the key internal and external factors that have the highest effect on the financial performance of commercial banks in Egypt during the period from 2011 till 2015. A panel data set that covers a 5 year period from 2011-2015 with a sample of 5 top banks of Egypt represents the sample of this study. The data were taken from the central bank of the Egypt, as well as the published financial statements of the chosen banks. The research main findings indicate that 77% of the variation in ROA is explained by the capital adequacy, inflation rate and total non-interest income while 61% of the variation in roe is explained by the capital adequacy, loan loss provisions, net interest income, total non-interest income and inflation Rate.
May Wahdan and Walid El Leithy, 2017. Factors Affecting the Profitability of Commercial Banks in Egypt over the Last 5 year (2011-2015). International Business Management, 11: 342-349.