FACTORS AFFECTING NON-INTEREST INCOME OF COMMERCIAL BANKS LISTED ON THE HO CHI MINH CITY STOCK EXCHANGE

Abstract

This study examines the  factors influencing non-interest income of commercial banks listed on the Ho Chi Minh Stock Exchange from 2010 to 2024. Secondary data from financial statements of 18 banks were analyzed using Stata software, employing panel data regression models including Pooled Ordinary Least Squares (Pooled OLS), Fixed Effects Model (FEM), Random Effects Model (REM), and Feasible Generalized Least Squares (FGLS)  after conducting Hausman, multicollinearity (VIF), heteroskedasticity, and autocorrelation tests. Key findings reveal that bank size, equity, and net interest margin positively and significantly affect non-interest income, while operating costs exert a negative impact; deposit ratio, loan ratio, number of employees, and return on equity show no statistical significance. The research concludes that strong capital base, large scale, and cost efficiency are critical drivers for diversifying non-interest income streams, enhancing operational performance and risk resilience of Vietnamese commercial banks amid digital transformation and international integration.