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Exploring the Internal Determinants of Kuwaiti Banking Sector Profitability

Musaed S. AlAli, Assistant Professor

Abstract

The aim of this study is to examine the internal factors that mostly affects the profitability of Kuwaiti banking sector. Unlike previous studies, this paper uses the aggregate financials of the whole sector rather than taking each bank individually. The research is based on data spanning over the period 2011-2018. Results obtained from this study revealed that assets size, leverage, and assets quality had a statistically significant effect on both return on assets (ROA) and return on equities (ROE). On the other hand, management efficiency, capital adequacy, and assets growth showed insignificant effect on profitability.

Keywords

Kuwait banking sectorReturn on assets (ROA)Return on equity (ROE)ProfitabilityLeverage

References

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