Comparative analysis on the determinants of profitability in the banking sector

The purpose of this research is to identify and compare bank-specific factors that determine bank profitability of commercial banks operating in the Turkish banking sector. Banks were examined by dividing them into groups in terms of capital: foreign capital, private capital and public capital. Within the scope of the research, data obtained from the financial statements of 12 banks operating between 2018 and 2022 were used. In this context, financial data of banks were analyzed by panel data method with Eviews13 and Stata17 programs. In the research, a multiple regression equation was established in which return on assets and return on equity were dependent variables and 11 bank-specific variables were independent variables. In this regard, the effect of independent variables on dependent variables and the relationship between bank groups were examined. According to the analysis results, the factors affecting profitability differ for each bank group. According to the results obtained, it was determined that return on assets and return on equity had a different and significant effect among bank groups.