Table 7
Panel regressions of bank profitability as measured by EARTA (2005–2015)
Variable
All banks
Conventional banks
Islamic banks
Model 1 Model 2
Model 3
Model 4
Model 5 Model 6 Model 7 Model 8 Model 9 Model 10 Model 11 Model 12
Constant
0.5418
0.064*
0.0928
0.770
0.0608
0.968
0.5872
0.730
0.7936
0.036**
1.8931
0.111
1.3617
0.417
3.5525
0.050**
−0.1353
0.848
−0.0035
0.999
9.2690
0.315
0.2768
0.988
Deposits/Assets
−0.2117
0.357
−0.1546
0.921
−0.0064
0.993
0.3547
0.642
−0.4931
0.231
−0.0412
0.946
0.0335
0.965
0.5903
0.437
−0.0376
0.917
−0.7022
0.656
−2.1824
0.526
−2.6184
0.628
Loans/Assets
−0.4325
0.058*
−0.5298
0.357
−0.3327
0.808
−0.8550
0.543
−0.2251
0.465
−2.0669
0.026**
−1.6039
0.308
−2.6729
0.066*
−0.3756
0.386
−0.0917
0.927
−2.8309
0.579
−1.0564
0.893
ROA
1.2811
0.204
0.6569
0.795
−5.3267
0.200
−6.7306
0.175
0.7775
0.627
4.5056
0.150
0.6352
0.908
−0.3533
0.946
1.6498
0.254
−6.6157
0.503
−2.9852
0.873
−4.8633
0.872
Other Earning Assets
−0.1584
0.330
−0.1812
0.603
−0.3039
0.744
−0.8366
0.426
0.1287
0.602
−0.3026
0.471
−0.7265
0.457
−0.4968
0.637
−0.4197
0.109
−0.8263
0.291
6.1090
0.080*
5.6944
0.353
Income Diversity
−0.4249
0.037**
−0.3624
0.204
−0.0694
0.882
−0.0308
0.948
−0.3154
0.576
−0.7895
0.285
0.3118
0.765
1.3342
0.269
−0.4186
0.094*
−0.1001
0.815
−0.8108
0.279
−0.7527
0.572
Non-Interest Income
0.0710
0.776
0.2789
0.465
0.1804
0.779
0.1328
0.850
−0.0098
0.989
0.5382
0.551
−0.7015
0.570
−1.7983
0.224
−0.0120
0.971
0.3739
0.549
3.8890
0.010***
3.4504
0.182
Log(Size)
−0.0065
0.633
0.0227
0.448
0.0208
0.658
0.0073
0.925
−0.0202
0.218
0.0034
0.918
0.0321
0.537
−0.0487
0.542
0.0418
0.371
0.0556
0.680
−0.5650
0.195
0.1905
0.892
Tier 1 Ratio
−0.4484
0.611
−0.7183
0.593
−0.9483
0.567
−2.0687
0.088*
−2.2198
0.262
−2.4191
0.224
−4.3885
0.259
−20.5756
0.016**
−18.5715
0.130
Tangible Equity
1.2257
0.160
1.6186
0.201
1.1558
0.453
1.1917
0.212
1.4340
0.297
0.1041
0.948
4.9886
0.172
21.7045
0.004***
18.9862
0.125
Liquid Assets
−0.7432
0.163
−1.7139
0.100*
−1.6509
0.137
−1.8201
0.020**
−2.2743
0.051*
−2.4210
0.034**
0.0720
0.940
−1.0617
0.757
1.0590
0.864
Funding Fragility
−0.0587
0.868
−0.0546
0.933
0.2235
0.789
−0.1110
0.781
−0.2504
0.742
−0.1943
0.821
0.6493
0.510
−2.8044
0.271
−3.6588
0.496
Equity Volatility
0.1195
0.492
−0.0892
0.624
0.0672
0.726
−0.1163
0.519
0.0061
0.988
0.0246
0.971
Log(Z)
−0.0172
0.790
−0.1117
0.159
0.0100
0.913
−0.2076
0.103
−0.0048
0.973
−0.0753
0.795
Ownership Concentration
0.2328
0.292
0.1952
0.349
−0.9730
0.563
Government Ownership
−0.1928
0.449
0.0139
0.952
0.3155
0.992
Foreign Ownership
−0.4026
0.399
−0.9301
0.065*
6.2195
0.881
LISTED_D
0.1023
0.235
0.1497
0.294
0.1803
0.382
0.4207
0.071*
0.0279
0.850
Omitted
0.2791
0.034**
0.2362
0.258
−1.7934
0.029**
−1.8836
0.741
(continued)
74
F. Mrad and M. Mateev
Panel regressions of bank profitability as measured by EARTA (2005–2015)
Variable
All banks
Conventional banks
Islamic banks
Model 1 Model 2
Model 3
Model 4
Model 5 Model 6 Model 7 Model 8 Model 9 Model 10 Model 11 Model 12
Constant
0.5418
0.064*
0.0928
0.770
0.0608
0.968
0.5872
0.730
0.7936
0.036**
1.8931
0.111
1.3617
0.417
3.5525
0.050**
−0.1353
0.848
−0.0035
0.999
9.2690
0.315
0.2768
0.988
Deposits/Assets
−0.2117
0.357
−0.1546
0.921
−0.0064
0.993
0.3547
0.642
−0.4931
0.231
−0.0412
0.946
0.0335
0.965
0.5903
0.437
−0.0376
0.917
−0.7022
0.656
−2.1824
0.526
−2.6184
0.628
Loans/Assets
−0.4325
0.058*
−0.5298
0.357
−0.3327
0.808
−0.8550
0.543
−0.2251
0.465
−2.0669
0.026**
−1.6039
0.308
−2.6729
0.066*
−0.3756
0.386
−0.0917
0.927
−2.8309
0.579
−1.0564
0.893
ROA
1.2811
0.204
0.6569
0.795
−5.3267
0.200
−6.7306
0.175
0.7775
0.627
4.5056
0.150
0.6352
0.908
−0.3533
0.946
1.6498
0.254
−6.6157
0.503
−2.9852
0.873
−4.8633
0.872
Other Earning Assets
−0.1584
0.330
−0.1812
0.603
−0.3039
0.744
−0.8366
0.426
0.1287
0.602
−0.3026
0.471
−0.7265
0.457
−0.4968
0.637
−0.4197
0.109
−0.8263
0.291
6.1090
0.080*
5.6944
0.353
Income Diversity
−0.4249
0.037**
−0.3624
0.204
−0.0694
0.882
−0.0308
0.948
−0.3154
0.576
−0.7895
0.285
0.3118
0.765
1.3342
0.269
−0.4186
0.094*
−0.1001
0.815
−0.8108
0.279
−0.7527
0.572
Non-Interest Income
0.0710
0.776
0.2789
0.465
0.1804
0.779
0.1328
0.850
−0.0098
0.989
0.5382
0.551
−0.7015
0.570
−1.7983
0.224
−0.0120
0.971
0.3739
0.549
3.8890
0.010***
3.4504
0.182
Log(Size)
−0.0065
0.633
0.0227
0.448
0.0208
0.658
0.0073
0.925
−0.0202
0.218
0.0034
0.918
0.0321
0.537
−0.0487
0.542
0.0418
0.371
0.0556
0.680
−0.5650
0.195
0.1905
0.892
Tier 1 Ratio
−0.4484
0.611
−0.7183
0.593
−0.9483
0.567
−2.0687
0.088*
−2.2198
0.262
−2.4191
0.224
−4.3885
0.259
−20.5756
0.016**
−18.5715
0.130
Tangible Equity
1.2257
0.160
1.6186
0.201
1.1558
0.453
1.1917
0.212
1.4340
0.297
0.1041
0.948
4.9886
0.172
21.7045
0.004***
18.9862
0.125
Liquid Assets
−0.7432
0.163
−1.7139
0.100*
−1.6509
0.137
−1.8201
0.020**
−2.2743
0.051*
−2.4210
0.034**
0.0720
0.940
−1.0617
0.757
1.0590
0.864
Funding Fragility
−0.0587
0.868
−0.0546
0.933
0.2235
0.789
−0.1110
0.781
−0.2504
0.742
−0.1943
0.821
0.6493
0.510
−2.8044
0.271
−3.6588
0.496
Equity Volatility
0.1195
0.492
−0.0892
0.624
0.0672
0.726
−0.1163
0.519
0.0061
0.988
0.0246
0.971
Log(Z)
−0.0172
0.790
−0.1117
0.159
0.0100
0.913
−0.2076
0.103
−0.0048
0.973
−0.0753
0.795
Ownership Concentration
0.2328
0.292
0.1952
0.349
−0.9730
0.563
Government Ownership
−0.1928
0.449
0.0139
0.952
0.3155
0.992
Foreign Ownership
−0.4026
0.399
−0.9301
0.065*
6.2195
0.881
LISTED_D
0.1023
0.235
0.1497
0.294
0.1803
0.382
0.4207
0.071*
0.0279
0.850
Omitted
0.2791
0.034**
0.2362
0.258
−1.7934
0.029**
−1.8836
0.741
(continued)
74
F. Mrad and M. Mateev