The bank-specific determinants of bank profitability in Malaysia

This study examines the profitability determinants of commercial banks in Malaysia. The research analyzes a sample of eight local commercial banks over a ten-year period from 2005 to 2014. Return on assets (ROA) was chosen as the dependent variable to measure profitability, while bank size, capital adequacy, liquidity, and asset quality were selected as the independent variables. Upon analyzing the data, the findings indicate that bank size, capital adequacy, and asset quality are significant determinants of bank profitability. In contrast, liquidity was found to be an insignificant variable, suggesting it is not a useful predictor of profitability for commercial banks in Malaysia.