Financial Performance of the Lebanese Bank

Abstract

Lebanese Banks financial performance is an important topic especially that the performance of banks has a significant influence on the economy. A study on the Lebanese Banks’ financial performance determinants is essential in order to provide banks with indicators that can help them to enhance and improve their performance. The purpose of this study is to determine and analyze the determinants or the factors affecting the profitability of the Lebanese Banking Sector. The sample studied consists of the Lebanese Banking Sector including all banks, but limited to a period of 19 years being from 1999 till 2017. Results of the study were analyzed using the statistical program “SPSS”. Findings revealed the significance relation each of Capital adequacy, efficiency, and growth in loans toward banks profitability as well as the significance relation between Inflation GDP deflator rate, Real Interest Rate and profitability. At the same time, no significant relation was obtained between liquidity, GDP growth and profitability. The study recommends banks to enhance their internal factors being the most important determinants of banks profitability, especially their capital adequacy and loan growth.