Table 8
Panel regressions of bank profitability as measured by EARGL (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
0.2280
0.370
0.7812
0.294
0.9886
0.375
0.4315
0.695
0.4276
0.242
2.9531
0.003***
2.2324
0.079*
2.3838
0.048**
−0.1780
0.695
1.291
0504
0.3965
0.554
−0.0732
0.934
Deposits/Assets
0.0167
0.933
0.2627
0.533
0.3517
0.501
0.7820
0.117
−0.1444
0.717
0.2824
0.566
0.9112
0.117
1.4623
0.005***
0.2602
0.263
0.2605
0.767
−0.0812
0.748
0.1719
0.503
Loans/Assets
−0.3608
0.068*
−1.2474
0.007***
−1.9065
0.060*
−1.4519
0.113
−0.4172
0.165
−3.3520
0.000***
−3.7419
0.002***
−3.4617
0.001***
−0.2520
0.367
−0.5816
0.302
−0.4471
0.248
−0.1763
0.637
ROA
1.3433
0.126
0.3328
0.869
1.7011
0.574
−2.2308
0.485
1.9281
0.216
5.7312
0.026**
9.5473
0.023**
4.5654
0.191
1.5708
0.094*
1.6712
0.761
0.1991
0.885
0.6952
0.626
Other Earning Assets
−0.0687
0.627
−0.3222
0.247
−0.8844
0.195
−1.3890
0.044**
0.1398
0.560
−0.4287
0.210
−1.1440
0.121
−1.2943
0.069*
−0.1885
0.263
−0.5821
0.184
−0.7577
0.008***
−0.5654
0.083*
Income Diversity
−0.1424
0.419
0.0196
0.931
0.6744
0.052*
0.7524
0.016**
0.8410
0.126
0.7674
0.202
1.3324
0.092*
1.7403
0.033**
−0.2018
0.208
−0.1357
0.571
0.0882
0.123
0.0912
0.179
Non-Interest Income
−0.1071
0.621
−0.4993
0.102
−1.2034
0.012**
−1.4454
0.002***
−1.3664
0.043**
−1.6620
0.025**
−2.5644
0.007***
−2.9795
0.004***
0.1273
0.548
−0.0515
0.882
−0.0190
0.837
0.0151
0.891
Log(Size)
−0.0044
0.714
0.0069
0.771
0.0356
0.300
0.0660
0.192
−0.0128
0.420
−0.0085
0.755
0.0519
0.184
0.0510
0.339
0.0096
0.750
−0.0792
0.295
0.0261
0.405
0.0175
0.791
Tier 1 ratio
−0.7096
0.313
−0.7915
0.421
−1.1583
0.282
−2.2427
0.024**
−3.5006
0.020**
−3.3276
0.014**
−3.1473
0.149
0.2256
0.675
0.3401
0.511
Tangible Equity
0.4331
0.532
0.4548
0.622
0.9374
0.348
0.5846
0.451
1.0005
0.332
1.1722
0.269
2.1258
0.293
−0.3808
0.407
−0.2397
0.641
Liquid Assets
−0.6074
0.152
−1.5476
0.043**
−1.5746
0.030**
−2.3634
0.000***
−2.4210
0.006***
−3.0361
0.000***
1.1185
0.042**
−0.3430
0.195
0.0049
0.987
Funding Fragility
−0.0747
0.790
−0.1524
0.747
−0.2381
0.660
0.1616
0.618
−0.4196
0.462
−0.3851
0.502
−0.6500
0.240
−0.2921
0.132
−0.0703
0.776
Equity Volatility
−0.1269
0.319
−0.0093
0.937
−0.1318
0.361
0.0463
0.699
−0.0498
0.135
−0.0357
0.290
Log(Z)
0.0285
0.547
−0.0737
0.152
0.0589
0.395
−0.1073
0.203
−0.0368
0.005***
−0.0345
0.044**
Ownership Concentration
−0.0500
0.726
−0.1981
0.156
0.0124
0.873
Government Ownership
−0.2192
0.186
−0.1048
0.498
0.3355
0.813
Foreign Ownership
−0.1142
0.711
−0.5056
0.129
0.2454
0.900
LISTED_D
0.1055
0.1018
0.1019
0.2236
0.1441
Omitted
0.1511
0.1692
0.0701
−0.0137
(continued)
76
F. Mrad and M. Mateev
Panel regressions of bank profitability as measured by EARGL (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
0.2280
0.370
0.7812
0.294
0.9886
0.375
0.4315
0.695
0.4276
0.242
2.9531
0.003***
2.2324
0.079*
2.3838
0.048**
−0.1780
0.695
1.291
0504
0.3965
0.554
−0.0732
0.934
Deposits/Assets
0.0167
0.933
0.2627
0.533
0.3517
0.501
0.7820
0.117
−0.1444
0.717
0.2824
0.566
0.9112
0.117
1.4623
0.005***
0.2602
0.263
0.2605
0.767
−0.0812
0.748
0.1719
0.503
Loans/Assets
−0.3608
0.068*
−1.2474
0.007***
−1.9065
0.060*
−1.4519
0.113
−0.4172
0.165
−3.3520
0.000***
−3.7419
0.002***
−3.4617
0.001***
−0.2520
0.367
−0.5816
0.302
−0.4471
0.248
−0.1763
0.637
ROA
1.3433
0.126
0.3328
0.869
1.7011
0.574
−2.2308
0.485
1.9281
0.216
5.7312
0.026**
9.5473
0.023**
4.5654
0.191
1.5708
0.094*
1.6712
0.761
0.1991
0.885
0.6952
0.626
Other Earning Assets
−0.0687
0.627
−0.3222
0.247
−0.8844
0.195
−1.3890
0.044**
0.1398
0.560
−0.4287
0.210
−1.1440
0.121
−1.2943
0.069*
−0.1885
0.263
−0.5821
0.184
−0.7577
0.008***
−0.5654
0.083*
Income Diversity
−0.1424
0.419
0.0196
0.931
0.6744
0.052*
0.7524
0.016**
0.8410
0.126
0.7674
0.202
1.3324
0.092*
1.7403
0.033**
−0.2018
0.208
−0.1357
0.571
0.0882
0.123
0.0912
0.179
Non-Interest Income
−0.1071
0.621
−0.4993
0.102
−1.2034
0.012**
−1.4454
0.002***
−1.3664
0.043**
−1.6620
0.025**
−2.5644
0.007***
−2.9795
0.004***
0.1273
0.548
−0.0515
0.882
−0.0190
0.837
0.0151
0.891
Log(Size)
−0.0044
0.714
0.0069
0.771
0.0356
0.300
0.0660
0.192
−0.0128
0.420
−0.0085
0.755
0.0519
0.184
0.0510
0.339
0.0096
0.750
−0.0792
0.295
0.0261
0.405
0.0175
0.791
Tier 1 ratio
−0.7096
0.313
−0.7915
0.421
−1.1583
0.282
−2.2427
0.024**
−3.5006
0.020**
−3.3276
0.014**
−3.1473
0.149
0.2256
0.675
0.3401
0.511
Tangible Equity
0.4331
0.532
0.4548
0.622
0.9374
0.348
0.5846
0.451
1.0005
0.332
1.1722
0.269
2.1258
0.293
−0.3808
0.407
−0.2397
0.641
Liquid Assets
−0.6074
0.152
−1.5476
0.043**
−1.5746
0.030**
−2.3634
0.000***
−2.4210
0.006***
−3.0361
0.000***
1.1185
0.042**
−0.3430
0.195
0.0049
0.987
Funding Fragility
−0.0747
0.790
−0.1524
0.747
−0.2381
0.660
0.1616
0.618
−0.4196
0.462
−0.3851
0.502
−0.6500
0.240
−0.2921
0.132
−0.0703
0.776
Equity Volatility
−0.1269
0.319
−0.0093
0.937
−0.1318
0.361
0.0463
0.699
−0.0498
0.135
−0.0357
0.290
Log(Z)
0.0285
0.547
−0.0737
0.152
0.0589
0.395
−0.1073
0.203
−0.0368
0.005***
−0.0345
0.044**
Ownership Concentration
−0.0500
0.726
−0.1981
0.156
0.0124
0.873
Government Ownership
−0.2192
0.186
−0.1048
0.498
0.3355
0.813
Foreign Ownership
−0.1142
0.711
−0.5056
0.129
0.2454
0.900
LISTED_D
0.1055
0.1018
0.1019
0.2236
0.1441
Omitted
0.1511
0.1692
0.0701
−0.0137
(continued)
76
F. Mrad and M. Mateev