Determinants of Egyptian Bank's Profitability using Seemingly Unrelated Regression Model

Abstract

Based on a group of variables and data collected during the period from the beginning of 2009 to the end of 2017, the paper analyzes the determinates of Egyptian bank’s profitability, using the Seemingly Unrelated Regression model (SUR). The dependent variables are return on assets and return on equity while the independent variables include earnings per share, net operating profit, bank size, loan size, bank deposits and bank age. The results indicate that the return on assets has been influenced, respectively, by bank size, loan size and net operating profit, but the return on equity has been affected respectively, by loan size and earnings per share.