Determinants of commercial banks' profitability in Malaysia

Citation

Yee, Joan Lee Jing and Ramasamy, Suganthi (2026) Determinants of commercial banks' profitability in Malaysia. International Journal of Business Excellence, 38 (4). pp. 457-480. ISSN 1756-0047

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Abstract

Commercial bank is an important financial institution as it is the major sources of money in Malaysia banking industry. Thus, the profitability of commercial banks is an issue to be further studied. The aim of this research is to identify the determinants of commercial banks' profitability in Malaysia. The source of data gathered is secondary data for the period between 2010 to 2019. From the finding, bank size, liquidity risk and cost efficiency are significant towards bank profitability whereas capital adequacy and non-performing loans are insignificant are insignificant towards bank profitability. Next, the factor that has positive relationship with bank profitability is capital adequacy. On the other hand, bank size, liquidity risk, non-performing loans and cost efficiency show negative relationship with bank profitability. The result also concludes that the cost efficiency is the most influencing factor towards the bank profitability in Malaysia among all the factors studied in this research.

Item Type: Article
Uncontrolled Keywords: profitability, commercial banks, bank size, Malaysia
Subjects: H Social Sciences > HG Finance > HG1501-3550 Banking
Divisions: Faculty of Business (FOB)
Depositing User: Ms Suzilawati Abu Samah
Date Deposited: 05 Jun 2026 03:14
Last Modified: 05 Jun 2026 03:14
URII: http://shdl.mmu.edu.my/id/eprint/15995

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