The comparative study on factors affecting profitability for Malayan Banking Berhad and CIMB Bank Berhad / Nor Arshadah Abdul Kadr

Abdul Kadr, Nor Arshadah (2021) The comparative study on factors affecting profitability for Malayan Banking Berhad and CIMB Bank Berhad / Nor Arshadah Abdul Kadr. [Student Project]

Abstract

The study aims to identify factors affecting bank profitability in Malaysia for Malayan Banking Berhad (MBB) and CIMB Bank Berhad (CIMB). The period of study is based on twenty-two (22) years of data from 1998 until 2019. Secondary data are obtained from reliable resources for studied variables. Dependent variables for profitability indicator are Return to Asset (ROA), Return to Equity (ROE) and Net Interest Margin (NIM). Independent variables are commonly categorized into Bank Specific variables, Industry Specific variable and Macroeconomic variables. This study has selected Return of Asset (ROA) as the dependent variable and focus on Capital Adequacy Ratio (CAR), Cost to Income (CTI), Gross Domestic Product (GDP) and Inflation (INF) as independent variables. Both Capital Adequacy Ratio (CAR) and Cost to Income (CTI) are Bank specific variables while Gross Domestic Product (GDP) and Inflation (INF) are Macro-economic variables. Malayan Banking Berhad (MBB) and CIMB Bank Berhad (CIMB) are chosen for being two leading banking institution in Malaysia and well established in many ASEAN countries. The relationship between variables is tested using Statistic / Econometric method. They are Test on Assumption (Normality test, Autocorrelation, Heteroscedasticity, Multicollinearity, RAMSEY), Descriptive analysis, Stationary test, Correlation analysis and Regression analysis (t-test, f-test, r square n etc.). The result is rather interesting for a discussion where only Gross Domestic Product (GDP) has a significant impact towards Return of Asset (ROA) for Malayan Banking Berhad while other variables are insignificant. As for CIMB Bank Berhad non of selected variables significantly related.

Metadata

Item Type: Student Project
Creators:
Creators
Email / ID Num.
Abdul Kadr, Nor Arshadah
2015507297
Contributors:
Contribution
Name
Email / ID Num.
Thesis advisor
Uteh, Nor Fazlin
272618
Subjects: H Social Sciences > HG Finance > Banking
H Social Sciences > HG Finance > Banking > Interest rates. Interest tables
Divisions: Universiti Teknologi MARA, Johor > Pasir Gudang Campus > Faculty of Business and Management
Programme: Bachelor of Business Administration (Hons) Finance
Keywords: Bank, Profitability, UiTM Pasir Gudang
Date: February 2021
URI: https://ir.uitm.edu.my/id/eprint/48603
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48603

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