Przyczynowa analiza rentowności wybranych polskich banków za pomocą modelu du Ponta
Causal Analysis of the Profitability of Selected Polish Banks Using the Model Du Pont

Summary/Abstract: Purpose – Net return on equity (ROE) is a central parameter in assessment of the bank and its individual areas of activities. ROE as a measure of profitability and the primary objective of the bank is used to steer towards a more efficient use of capital raised and to determine the factors that inform the dynamics of the bank’s viability. Design/research methodology – It is possible to decompose the return on equity in the assessment of banks by Du Pont decomposition using methods of logarithm and subsequent substitutions. Findings – Based on data from the database Emis the authors calculated measures of profitability (ROE mainly) for commercial banks operating in Poland and applied Du Pont model to determine the effect of factors included in the model on return on equity. Originality/value – ROE decomposition can be useful in analyzing financial situation of a bank and can serve as a tool for assessment of the causal changes in return on equity in the years 2008–2015.

• Details
• Contents