Szilard Farkasdi
IDC Financial Insight

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DETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY Szilard Farkasdi; Budi Septiawan; Erik Syawal Alghifari
JRAK Vol 13 No 2 (2021): October Edition
Publisher : Faculty of Economics and Business, Universitas Pasundan, Bandung, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.23969/jrak.v13i2.4500

Abstract

This study aims to determine the determinants of profitability in commercial banks in Germany. The population is 7 banking sector companies listed in the DAX (Deutscher Aktienindex) Bank during the 2017-2020 period, with a sample of 5 banks and producing 20 observational data. The method used is descriptive and verification with multiple regression analysis. The results show that asset size, capital adequacy, deposits and non-interest income have a significant positive effect on profitability. Partially, asset size, capital adequacy and non-interest income have a significant positive effect, while the deposit has a significant negative effect on profitability. The most dominant factor affecting profitability is non-interest income.