Determinants of Financial Performance in the Banking Sector: A Case Study of Listed Kuwaiti Banks

Majed Alharthi ()

Asian Economic and Financial Review, 2022, vol. 12, issue 7, 537-548

Abstract: This study explores the determinants of the profitability of banks listed on the Kuwaiti stock exchange, Boursa Kuwait. This study also investigates the financial performance of the listed Kuwaiti banks during the COVID-19 pandemic. The aim of this study is to examine the correlation between profitability and the factors that determine profitability for 11 listed Kuwaiti banks from 2013 to 2020. Relevant data was statistically analyzed using the generalized method of moments (GMM) model. The empirical findings of this research indicate that deposit volume and oil prices positively impact the profitability of the Kuwaiti banking sector. Conversely, bank size, leverage, and capitalization had a significant negative impact on the earnings of the listed Kuwaiti banks. Based on the findings of this study, several policy recommendations are made that would grow the profits of the Kuwaiti banking sector and mitigate the effects of negative factors.

Keywords: Kuwait; Banks; GMM; Return on assets; Return on equity; COVID-19 pandemic. (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://archive.aessweb.com/index.php/5002/article/view/4553/7141 (application/pdf)
https://archive.aessweb.com/index.php/5002/article/view/4553/7652 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:asi:aeafrj:v:12:y:2022:i:7:p:537-548:id:4553

Access Statistics for this article

More articles in Asian Economic and Financial Review from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().