Product mix in turkish banking sector and its effects on volatility of profitability: An emprical analsis for period 2002?2007

The aim of this study is to explore the effects of product mix in Turkish banking sector to the volatility of profitability of banks.After consulting the relevant literature, necessary analysis have been made by using the past financial tables that are prepared according to International Financial Reporting Standards (IFRS) and reviewed by independent auditors.In this study, data from trimester financial tables of four big banks in Turkey were used.While cash values of these banks don?t have normal distribution, however, normal distribution is valid for guarantee and commitment, and operating profit. High correlation (0,86-0,99) is found between all profitability variables and net profit. Also, it is revealed that, net profit can be used as a representative of all profitability items, in order to explain the relationship between profitability and product mix.