Some factors affecting profits of commercial banks in Vietnam

Abstract

The article studies the influence of factors on the profitability of commercial banks in Vietnam in the period 2014-2020, based on data collected from the audited financial reporting system of 15 banks. Customers are from small to large scale and account for 62% of the total assets of the whole system. The authors use multiple linear regression models and factor analysis models to process the data. The research results show that the bank’s asset size, equity size, liquidity risk, interest income and non-interest income have a positive and statistically significant impact on profitability. Meanwhile, administrative costs, credit risk and tax have opposite and statistically significant effects on profitability.