Factors influencing the profitability of Vietnamese commercial banks during the 2013-2024 period
Ngan Bich Nguyen () and
Nhi Yen Vu ()
Edelweiss Applied Science and Technology, 2025, vol. 9, issue 2, 1648-1658
Abstract:
This study examines the factors influencing the profitability of Vietnamese commercial banks from 2013 to 2024, a period marked by global financial fluctuations, economic downturns, and the COVID-19 pandemic. The research aims to identify key determinants of bank profitability and propose strategic solutions for financial performance enhancement. Using panel data from nine Vietnamese commercial banks, the study employs various econometric techniques, including Pooled OLS, Fixed Effects Model (FEM), Random Effects Model (REM), and Feasible Generalized Least Squares (FGLS), to ensure robust findings. The results indicate that the equity-to-assets ratio (EAR), GDP growth, and bank size positively impact return on assets (ROA), while non-performing loans (NPL), cost-to-income ratio (CIR), and industry concentration (CR4) negatively affect it. For net interest margin (NIM), GDP growth, EAR, loan-to-deposit ratio (LDR), and COVID-19 have a positive influence, whereas CIR exerts a negative effect. The study provides practical recommendations for Vietnamese commercial banks, including enhancing cost efficiency, strengthening credit risk management, expanding asset size, and adapting to macroeconomic fluctuations. While the research offers valuable insights, future studies should consider additional factors such as digital transformation and international governance standards to provide a more comprehensive analysis.
Keywords: Credit risk; Financial performance; Macroeconomic factors; NIM; Profitability; ROA; Vietnamese commercial banks. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:
Downloads: (external link)
https://learning-gate.com/index.php/2576-8484/article/view/4852/1828 (application/pdf)
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:ajp:edwast:v:9:y:2025:i:2:p:1648-1658:id:4852
Access Statistics for this article
More articles in Edelweiss Applied Science and Technology from Learning Gate
Bibliographic data for series maintained by Melissa Fernandes ().