COMPARATIVE ANALYIS OF PROFITABILITY OF COMMERCIAL BANKS

Abstract

The application of the DuPont model for the study of bank performance assessment is discussed. Return on assets and financial leverage multiplier are analyzed to produce return on equity. According to the activity of Armenian commercial banks, financial time series are used as data for the assessment of return on assets and financial leverage multiplier. It is shown that the regression dependence of return on equity from return on assets and financial leverage multiplier is significant. The panel analysis implemented for Armenian commercial banks using the DuPont regression model allowed for the analysis of financial indicators assessing the banks' activity.