Determinants of Profitablity at Nib International Bank S.C: an Analysis of Bank Specific Factors (2012-2022)
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Date
2025-06-10
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A.A.U
Abstract
This study examines determinants of bank profitability in Nib International Bank using
secondary data. Data was extracted from audited financial statements selected in the area of
study during 2012–2022. Analyses of these variables were novel as some of these factors of the
bank profitability are overlooked by other researcher; some common factors that influenced
bank profitability of the banking system such as asset size; customer deposit size; nonperforming
loan; operating income; capital adequacy. The study used bank profitability as
dependent variable. Moreover, the study used both bank specific and external variables as
explanatory variables. Both descriptive statistics and econometrics model specifically OLS
regression on audited financial statements(2012-2022) was used to analyze the relationships of
dependent variable with explanatory variables. The major findings of the study show that bank
specific determinants were very important in explaining profitability than external variables. The
Asset size, customer deposit size, operating income and capital adequacy were positively and
significantly related to bank’s profitability, while non-performing loan have a negative impact
on profitability of bank specific drivers.