%0 Journal Article
	%A Libena Cernohorska
	%D 2015
	%J International Journal of Economics and Management Engineering
	%B World Academy of Science, Engineering and Technology
	%I Open Science Index 108, 2015
	%T Factors Influencing Bank Profitability of Czech Banks and Their International Parent Companies
	%U https://publications.waset.org/pdf/10003086
	%V 108
	%X The goal of this paper is to specify factors influencing
the profitability of selected banks. Next, a model will be created to
help establish variables that have a demonstrable influence on the
development of the selected banks' profitability ratios. Czech banks
and their international parent companies were selected for analyzing
profitability. Banks categorized as large banks (according to the
Czech National Bank's system, which ranks banks according to
balance sheet total) were selected to represent the Czech banks. Two
ratios, the return on assets ratio (ROA) and the return on equity ratio
(ROE) are used to assess bank profitability. Six endogenous and four
external indicators were selected from among other factors that
influence bank profitability. The data analyzed were for 2001–2013.
First, correlation analysis, which was supposed to eliminate
correlated values, was conducted. A large number of correlated
values were established on the basis of this analysis. The strongly
correlated values were omitted. Despite this, the subsequent
regression analysis of profitability for the individual banks that were
selected did not confirm that the selected variables influenced their
profitability. The studied factors' influence on bank profitability was
demonstrated only for Ceskoslovenska Obchodni Banka and Société
Générale using regression analysis. For Československa Obchodni
Banka, it was demonstrated that inflation level and the amount of the
central bank's interest rate influenced the return on assets ratio and
that capital adequacy and market concentration influenced the return
on equity ratio for Société Générale.
	%P 4215 - 4220