The impact of bank-specific and macroeconomic condition on bank profitability : evedence from Sudan /by Abdalrahman Abdu

Abstract

The Sudanese financial sector is very weak and it is dominated by commercial banks. The aim of the study is to determine the factors which influence the profitability of Sudanese banks. The study selected a sample of eleven commercial banks for the period from 2007 and 2013. The study used Pooled Panel Data Regression (Ordinary Least Square) in order to achieve the objectives of the study. The study selected specific measurements namely; bank size, liquidity, capital strength, and management efficiency as bank-specific and macroeconomic conditions (GDP, Inflation, and growth money in supply). The empirical result has shown that bank size has a significant on ROA. Management efficiency has a significant impact on the profitability (ROA and ROE). In addition, the capital strength has demonstrated a significant relationship with ROE. Moreover, Liquidity indicator of banks has revealed a positive relationship with profitability ROA with significant while, it has shown positive relationship with profitability ROE with no significant. For macroeconomic conditions GDP and inflation have a significant impact on the profitability.