THE FACTORS AFFECTING THE PROFITABILITY OF VIETNAMESE COMMERCIAL BANKS AMID THE COVID-19 PANDEMIC

Abstract

Using data from financial statements of 25 Vietnamese commercial banks in the period from the 1^st quarter of 2018 to the 3^rd quarter of 2021, this study focused on assessing the profitability of Vietnamese commercial banks amid the Covid-19 pandemic by analyzing related factors. Using REM estimation model for panel data and the descriptive statistical analysis method, and T-test test, the results show that bank profitability before and amid the Covid-19 pandemic were affected by various factors, including operating scale, funding structure, equity ratio, operating expense ratio, credit risk, and non-interest income ratio. But, no evidence of the pandemic impact on bank profitability was found. Although profit rates fluctuated, commercial banks still secured earning profits during the pandemic.