Profitability of banking sector in Western Balkans countries
| Autor: | Branimir M. Kalaš, Aleksandra Rakita |
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| Rok vydání: | 2017 |
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| Zdroj: | Poslovna ekonomija. 11:90-101 |
| ISSN: | 1821-1798 1820-6859 |
| DOI: | 10.5937/poseko12-13463 |
| Popis: | Banking performances reflect the size, value, success and efficiency of their operations. Indicators of banks are a mirror of their business activities and consequently, the banks have to improve them so that can operate and survive in the financial markets in terms of market competition. Precisely in this way, banks will be able to achieve positive results in business, ie. profit and thus create conditions for their long-term growth and development. The aim of the paper is to show the performance of banking sector in Serbia, Bosnia and Herzegovina, Croatia and Montenegro through fundamental indicators of profitability. The subject of the paper is theoretical framework focused on the bank performance and determining their characteristics from the point of profitability. After that, a review of the banking sector in selected countries is reflected through a detailed analysis of return on assets (ROA) and return on equity (ROE) as two main indicators of profitability of the banking sector in Serbia, Bosnia and Herzegovina, Croatia and Montenegro. Results showed that there is a decrease in the value of indicators ROA and ROE in the observed countries, especially in Montenegro where the average negative rate was 0.6% and 6.54%. Looking 2015, the highest decline was recorded in Croatia where ROA and ROE were at -1.1% and -7.8%, while other countries recorded positive values of ROE in interval of 0.1% - 0.5% and ROE in interval 1.1% - 3.4%. |
| Databáze: | OpenAIRE |
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