Comparative analysis of the effect of non-performing loans on profitability according to public and private banks

In this thesis study, which deals with the effect of NPLs on profitability, the results of the non-parametric analysis methods Data Envelopment Analysis and Malmquist Total Factor Efficiency Index were tried to be reached by using the data of the State-owned Deposit Banks and Private-Equity Deposit Banks operating in Turkey between the years 2012-2020. Non-performing Receivables formed by the third, fourth and fifth groups included in the bank reports were used as inputs in the analyses, and the balance sheet profit of the banks as output data. Data Envelopment Analysis and Malmquist Total Factor Efficiency index calculations were made with Win4Deap2 software and spreadsheets were used to analyze and interpret the results. By evaluating the findings obtained as a result of the analysis, it was concluded that State-Owned Deposit Banks were more successful than Private-Equity Deposit Banks in terms of the direct impact of non-performing loans on profit, however, Public-Equity Deposit Banks were more unsuccessful than Private-Equity Deposit Banks in reducing the effect of non-performing loans on profit by using banking facilities.