THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY GRADUATION THESIS FACTORS AFFECTING VIETNAMESE COMMERCIAL BANKS’ PROFITABILITY FROM 2012 TO 2020 MAJ.
THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING BANKING UNIVERSITY OF HO CHI MINH CITY GRADUATION THESIS FACTORS AFFECTING VIETNAMESE COMMERCIAL BANKS’ PROFITABILITY FROM 2012 TO 2020 MAJOR: FINANCE – BANKING CODE: 52340201 Student: Tran Thanh Tam Student ID: 050606180327 Academic advisor: Dr Ho Thi Ngoc Tuyen Ho Chi Minh City, May 2022 i ABSTRACT The purpose of this thesisis to provide an analysis of factors affecting the profitability of 22 commercial banks in Vietnam from 2012 to 2020 using Pooled OLS, FEM, REM, FGLS methods The scope of the study is to aim at finding and analyzing the degree of impact of specific bank factors, industry-specific factors and macro-economic factors on the profitability of 22 commercial banks in Vietnam The study cannot avoid the limitations because of the selection may not fully reflect the content and the meaning of all factors affect profitability or may not fully represent all commercial banks in Vietnam Understanding the factors influencing the performance of the bank not only receives much attention from scholars, but also from shareholders, administrators and authorities, because it assists policy makers and administrators in formulating strategies and policies to ensure the stability and sustainability of banking system's operation, as well as to avoid the risk of banking system crisis Assessing the profitability of a commercial bank always raises questions, because of their diversity Many researchers consider that profitability can provide a picture of the bank's business results Obtained result showed that ROA of commercial banks in Vietnam was affected positively and statistically significant by liquidity ratio, equity ratio, income diversification ratio, GDP and inflation rate; while non-performing loan, operating cost and loan balance have negative impact on ROA In contrast, Bank size not affect ROA and is not statistically significant Likewise, ROE of commercial banks in Vietnam was affected positively and statistically significant by Bank size, liquidity ratio, income diversification ratio, GDP and inflation rate; while equity ratio, non-performing loan and operating cost have negative impact on ROE By contrast, loan balance not affect ROE and is not statistically significant Keywords: the factors, commercial banks, profitability, ROA, ROE ii GUARANTEE My name is: TRAN THANH TAM Born: January 3rd, 2000 MSSV: 050606180327 Grade: HQ6-GE12 As a 4th class student of the High-quality program of Banking University of Ho Chi Minh City I hereby declare that the thesis is: “FACTORS AFFECTING VIETNAMESE COMMERCIAL BANKS’ PROFITABILITY FROM 2012 TO 2020” Academic advisor: Dr Ho Thi Ngoc Tuyen The thesis is carried out at Banking University of Ho Chi Minh City This thesis is the author's own research work, the research results are honest, in which there are no previously published contents or contents made by others except for the cited quotations Sufficient source in the thesis I take full responsibility for my honorary statement Ho Chi Minh City, May 30th, 2022 Author Tran Thanh Tam iii ACKNOWLEDGEMENT I would like to express my sincere thanks to the Board of Directors, Faculty of Finance, Faculty of Banking, lecturers, officials of departments and functional departments of Banking University of Ho Chi Minh City for helping me to equip my knowledge, create the most favorable conditions during the study and implementation of this thesis With respect and gratitude, I would like to express my gratitude to Dr Ho Thi Ngoc Tuyen for encouraging, guiding, and helping me throughout the entire process so that the thesis research process can be completed in the best way Best regards! iv TABLE OF CONTENT ABSTRACT .i GUARANTEE ii ACKNOWLEDGEMENT iii TABLE OF CONTENT iv ABBREVIATION LIST vii LIST OF TABLES viii LIST OF PICTURES ix CHAPTER INTRODUCTION 1.1 Background of the study 1.2 Research objectives 1.2.1 General objectives 1.2.2 Specific objectives 1.3 Research questions 1.4 Subject and scope of the study 1.4.1 Subject of the study 1.4.2 Scope of the study 1.5 Research methodology 1.6 Contribution of the topic 1.7 Structure of the thesis CHAPTER THEORETICAL BASIS AND LITERATURE REVIEW 2.1 Theoretical basis about commercial bank 2.2 Theoretical basis about commercial bank profitability 2.2.1 Definition of bank profitability 2.2.2 Factors affecting commercial bank profitability 2.3 Theoretical framework 2.3.1 Agency theory 2.3.2 Relative market power 2.3.3 Balance portfolio theory v 2.3.4 Trade-off theory 2.4 The meaning of profit assessment 2.5 The indicators reflect the profitability of commercial banks 10 2.5.1 Return on assets – ROA 10 2.5.2 Return on equity – ROE 11 2.6 Literature review 12 2.6.1 Foreign studies 12 2.6.2 National studies 14 CONCLUSION OF CHAPTER 19 CHAPTER 3.1 RESEARCH METHODS 20 Research model 20 3.1.1 Research model 20 3.1.2 Method of determining variable 21 3.2 Research hypothesis 22 3.3 Research data 28 3.4 Selection of regression model and tests 29 3.5 Research Process 31 CONCLUSION OF CHAPTER 32 CHAPTER 4.1 RESEARCH RESULTS AND DISCUSSION 34 Descriptive statistics 34 4.1.1 Check the correlation between variables 37 4.1.2 Multicollinearity diagnostics 37 4.2 Analysis of factors affecting ROA 38 4.2.1 Regression results 38 4.2.2 Model choice 39 4.2.3 Testing the hypothesis violations of the FEM 40 4.3 4.2.3.1 Heteroskedasticity diagnostics 40 4.2.3.2 Autocorrelation test 41 4.2.3.3 Fix the defects of the model 41 4.2.3.4 Discuss the influence of factors on ROA 42 Analysis of factors affecting ROE 45 4.3.1 Regression results 45 vi 4.3.1.1 4.3.2 Model choice 47 Testing the hypothesis violations of the FEM 47 4.3.2.1 Heteroskedasticity diagnostics 47 4.3.2.2 Autocorrelation diagnostics 48 4.3.2.3 Fix the defects of the model 48 4.3.2.4 Discuss the influence of factors on ROE 48 CONCLUSION OF CHAPTER 51 CHAPTER CONCLUSION AND RECOMMENDATIONS 52 5.1 Conclusion 52 5.2 Recommendations 52 5.2.1 Bank size (SIZE) 52 5.2.2 Liquidity ratio (LIQ) 53 5.2.3 Equity ratio (CAP) 54 5.2.4 Loan ratio (TLA) 55 5.2.5 Non-performing loan (NPL) 56 5.2.6 Operating Efficiency (CIR) 56 5.2.7 Income diversification (IDR) 57 5.2.8 Economic growth (GDP) 58 5.2.9 The inflation rate (INF) 58 5.3 Limitation of the study 59 CONCLUSION OF CHAPTER 61 CONLUSION OF THE THESIS 62 REFERENCES 63 APPENDIX ………………………………………………………………………… 69 vii ABBREVIATION LIST Abbreviation Meaning FEM Fixed effect model GDP Gross domestic product INF Inflation Pooled OLS Pooled Ordinary Least Squares REM Random effect model ROA Return on asset ROE Return on equity viii LIST OF TABLES Table 2-1 Summary previous studies 16 Table 4-1 Descriptive statistics of variables in the regression model 34 Table 4-2 Correlation matrix between variables 37 Table 4-3 Test results for multicollinearity 37 Table 4-4 Summarize the results of regression analysis with ROA 38 Table 4-5 F test, Breusch -Pagan and Hausman model selection for variable ROA 39 Table 4-6 The results of Heteroskedasticity diagnostics with ROA 40 Table 4-7 Autocorrelation test results of ROA 41 Table 4-8 ROA regression model results after fixing 41 Table 4-9 Summarize the results of regression analysis with ROE 45 Table 4-10 F test, Breusch-Pagan and Hausman model selection for variable ROE 47 Table 4-11 The results of Heteroskedasticity diagnostics with ROE 47 Table 4-12 The results of Autocorrelation diagnostics with ROE 48 Table 4-13 ROE regression model results after fixing 48 ix LIST OF PICTURES Picture Descriptive statistics 70 Picture Correlation matrix between variables 70 Picture Test results for multicollinearity 70 Picture Pooled OLS output with ROA 70 Picture REM output with ROA 70 Picture FEM output with ROA 70 Picture Breusch and Pagan Lagrangian test with ROA 70 Picture Hausman test with ROA 70 Picture Heteroskedasticity diagnostics with ROA 70 Picture 10 Autocorrelation diagnostics with ROA 70 Picture 11 FGLS output with ROA 70 Picture 12 Pooled OLS output with ROE 70 Picture 13 FEM output with ROE 70 Picture 14 REM output with ROE 70 Picture 15 Breusch and Pagan Lagrangian test with ROE 70 Picture 16 Hausman test with ROE 70 Picture 17 Heteroskedasticity diagnostics with ROE 70 Picture 18 Autocorrelation diagnostics with ROE 70 Picture 19 FGLS output with ROE 70 69 APPENDIX Appendix 1: List of commercial banks selected for the research No Name of Banks Abbreviations Indications An Binh Commercial Joint Stock Bank ABBank ABB Asia Commercial Joint Stock Bank ACB ACB Joint Stock Commercial Bank for BIDV BIDV Eximbank EIB HDbank HDB Investment and Development of Vietnam Vietnam Export Import Commercial Joint Stock Ho Chi Minh city Development Joint Stock Commercial Bank Kien Long Commercial Joint Stock Bank Kienlongbank KLB LienViet Commercial Joint Stock Bank LienVietPostBank LPB The Maritime Commercial Joint Stock Maritimebank MSB Bank Military Commercial Joint Stock Bank MB MBB 10 Nam A Commercial Joint Stock Bank NamABank NAB 11 National Citizen Bank NCB NCB 12 Orient Commercial Joint Stock Bank OCB OCB 13 Petrolimex Group Commercial Joint Stock PGbank PGB Sacombank STB Bank 14 Saigon Thuong Tin Commercial Joint Stock Bank 15 Saigon Bank for Industry & Trade Saigonbank SGB 16 Saigon-Hanoi Commercial Joint Stock SHB SHB 70 Bank 17 Vietnam Technological and Commercial Techcombank TCB VIB VIB Vietabank VAB Vietcombank VCB Vietinbank CTG VPbank VPB Joint Stock Bank 18 Vietnam International Commercial Joint Stock Bank Ng n hàng TMCP Việt 19 20 Joint Stock Commercial Bank for Foreign Trade of Vietnam 21 Vietnam Joint Stock Commercial Bank of Industry and Trade 22 Vietnam Commercial Joint Stock Bank for Private Enterprise Appendix 02 Research data Bank ABB ABB ABB ABB ABB ABB ABB ABB ABB ACB ACB ACB ACB ACB ACB ACB ACB ACB BID BID BID Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 ROE 0.0830 0.0264 0.0204 0.0159 0.0419 0.0817 0.1101 0.1360 0.1334 0.0638 0.0658 0.0764 0.0817 0.0987 0.1408 0.2773 0.2464 0.2431 0.1003 0.1373 0.1513 ROA 0.0091 0.0027 0.0019 0.0014 0.0035 0.0062 0.0082 0.0104 0.0102 0.0034 0.0048 0.0055 0.0054 0.0061 0.0082 0.0167 0.0169 0.0186 0.0058 0.0078 0.0083 LIQ 0.0083 0.0073 0.0065 0.0089 0.0085 0.0103 0.0096 0.2155 0.2266 0.0403 0.0123 0.0139 0.0139 0.0152 0.0171 0.0186 0.0930 0.1035 0.0068 0.0070 0.0083 TLA 0.4076 0.4103 0.3849 0.4802 0.5365 0.5669 0.5798 0.5539 0.5439 0.5832 0.6434 0.6476 0.6653 0.6992 0.6982 0.7000 0.7006 0.7007 0.7012 0.7131 0.6853 CAP 0.1065 0.0997 0.0847 0.0899 0.0788 0.0724 0.0763 0.0765 0.0766 0.0716 0.0751 0.0690 0.0635 0.0602 0.0564 0.0638 0.0724 0.0797 0.0551 0.0589 0.0517 IDR 0.0178 0.0837 0.0487 0.0793 0.0972 0.0973 0.1596 0.1779 0.2084 -0.0465 0.0704 0.0942 0.0239 0.0408 0.1467 0.1528 0.1407 0.1124 0.0746 0.1225 0.1151 CIR 0.6121 0.6692 0.6558 0.6036 0.5743 0.5923 0.5735 0.5142 0.4923 0.7319 0.6654 0.6379 0.6465 0.6186 0.5435 0.4783 0.5161 0.4198 0.3983 0.3871 0.3937 SIZE 17.6444 17.8695 18.0271 17.9802 18.1219 18.2523 18.3153 18.4459 18.5723 18.9877 18.9311 19.0063 19.1211 19.2695 19.4656 19.6126 19.7649 19.9125 19.9992 20.1225 20.2930 NPL 0.0229 0.0480 0.0399 0.0275 0.0232 0.0220 0.0495 0.0659 0.0706 0.0138 0.0303 0.0218 0.0131 0.0087 0.0070 0.0073 0.0108 0.0059 0.0270 0.0187 0.0203 INF 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 71 BID BID BID BID BID BID CTG CTG CTG CTG CTG CTG CTG CTG CTG EIB EIB EIB EIB EIB EIB EIB EIB EIB HDB HDB HDB HDB HDB HDB HDB HDB HDB KLB KLB KLB KLB KLB KLB KLB KLB KLB LPB LPB LPB LPB LPB 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 0.1679 0.1433 0.1494 0.1459 0.1293 0.0918 0.1973 0.1318 0.1046 0.1027 0.1162 0.1202 0.0805 0.1310 0.1690 0.1332 0.0432 0.0039 0.0029 0.0232 0.0594 0.0453 0.0565 0.0657 0.0730 0.0311 0.0536 0.0662 0.0924 0.1582 0.2027 0.2161 0.2061 0.1017 0.0906 0.0514 0.0490 0.0359 0.0583 0.0635 0.0179 0.0328 0.1242 0.0772 0.2282 0.0467 0.1334 0.0085 0.0067 0.0063 0.0060 0.0061 0.0048 0.0128 0.0108 0.0093 0.0079 0.0078 0.0073 0.0047 0.0079 0.0107 0.0121 0.0039 0.0003 0.0003 0.0024 0.0059 0.0044 0.0054 0.0065 0.0067 0.0031 0.0051 0.0061 0.0071 0.0115 0.0158 0.0180 0.0169 0.0193 0.0157 0.0079 0.0068 0.0043 0.0060 0.0058 0.0014 0.0023 0.0142 0.0078 0.0185 0.0034 0.0085 0.0077 0.0071 0.0064 0.0075 0.1143 0.0651 0.0050 0.0049 0.0070 0.0065 0.0055 0.0055 0.0060 0.1250 0.1194 0.0736 0.0738 0.0773 0.0997 0.0967 0.0833 0.0815 0.2043 0.2391 0.0153 0.0073 0.0082 0.0140 0.0109 0.0080 0.0097 0.1323 0.1716 0.0061 0.0049 0.0061 0.0082 0.0098 0.0116 0.0123 0.2656 0.2823 0.0028 0.0026 0.0032 0.0045 0.0045 0.7035 0.7191 0.7210 0.7530 0.7497 0.8006 0.6620 0.6529 0.6652 0.6903 0.6979 0.7220 0.7429 0.7538 0.7569 0.4403 0.4908 0.5410 0.6789 0.6746 0.6783 0.6816 0.6760 0.6281 0.4007 0.5106 0.4206 0.5311 0.5471 0.5519 0.5699 0.6376 0.5588 0.5211 0.5675 0.5855 0.6405 0.6491 0.6613 0.6966 0.6552 0.6061 0.3462 0.3712 0.4096 0.5220 0.5616 0.0498 0.0438 0.0406 0.0415 0.0521 0.0525 0.0672 0.0942 0.0836 0.0720 0.0636 0.0582 0.0578 0.0623 0.0637 0.0929 0.0864 0.0873 0.1053 0.1044 0.0954 0.0975 0.0940 0.1048 0.1022 0.0997 0.0924 0.0924 0.0662 0.0780 0.0779 0.0888 0.0774 0.1854 0.1626 0.1456 0.1332 0.1105 0.0951 0.0886 0.0742 0.0684 0.1113 0.0914 0.0733 0.0706 0.0587 0.1101 0.1119 0.1025 0.1058 0.1205 0.1414 0.0699 0.0792 0.0840 0.0919 0.0767 0.0850 0.0844 0.0885 0.1164 0.0287 0.0470 0.0272 0.0467 0.0786 0.1296 0.1253 0.1120 0.1046 0.1294 0.2542 0.2016 0.1121 0.0654 0.0774 0.1068 0.0837 0.0813 0.0111 0.0122 0.0037 0.0126 0.0608 0.0294 0.0887 0.0500 0.0734 -0.0225 -0.0408 -0.0289 -0.0190 -0.0171 0.4487 0.4452 0.3974 0.3623 0.3586 0.3536 0.4296 0.4549 0.4672 0.4713 0.4874 0.4620 0.4951 0.3883 0.3549 0.4264 0.6528 0.6962 0.6066 0.6038 0.5763 0.6517 0.6020 0.5486 0.5232 0.7212 0.6279 0.5831 0.6048 0.5425 0.4705 0.4461 0.4480 0.5122 0.5525 0.6554 0.6735 0.7367 0.7153 0.7391 0.8660 0.8745 0.4485 0.5372 0.0679 0.6285 0.5247 20.5615 20.7296 20.9075 20.9956 21.1220 21.1398 20.0372 20.1723 20.3096 20.4741 20.6705 20.8141 20.8754 20.9390 21.0170 18.9522 18.9503 18.8975 18.6426 18.6738 18.8219 18.8437 18.9367 18.8934 17.7817 18.2725 18.4159 18.4835 18.8281 19.0590 19.1911 19.2513 19.5811 16.7377 16.8776 16.9555 17.0472 17.2316 17.4352 17.5605 17.7493 17.8635 18.0114 18.1925 18.4287 18.4938 18.7704 0.0168 0.0199 0.0162 0.0190 0.0175 0.0176 0.0147 0.0100 0.0112 0.0092 0.0102 0.0114 0.0158 0.0116 0.0094 0.0132 0.0198 0.0246 0.0186 0.0295 0.0227 0.0185 0.0171 0.0252 0.0235 0.0367 0.0227 0.0159 0.0146 0.0152 0.0153 0.0136 0.0132 0.0293 0.0247 0.0195 0.0113 0.0106 0.0083 0.0086 0.0102 0.0542 0.0271 0.0248 0.0110 0.0088 0.0111 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 72 LPB LPB LPB LPB MBB MBB MBB MBB MBB MBB MBB MBB MBB MSB MSB MSB MSB MSB MSB MSB MSB MSB NAB NAB NAB NAB NAB NAB NAB NAB NAB OCB OCB OCB OCB OCB OCB OCB OCB OCB 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 PGB 2012 PGB PGB PGB PGB PGB 2013 2014 2015 2016 2017 0.1545 0.0980 0.1405 0.1389 0.1947 0.1564 0.1524 0.1246 0.1159 0.1242 0.1941 0.2179 0.1913 0.0244 0.0357 0.0151 0.0101 0.0103 0.0089 0.0631 0.0728 0.1267 0.0562 0.0413 0.0568 0.0491 0.0096 0.0674 0.0985 0.1540 0.1384 0.0607 0.0620 0.0553 0.0508 0.0865 0.1505 0.2358 0.2544 0.2443 0.1628 0.0119 0.0400 0.0122 0.0357 0.0183 0.0090 0.0057 0.0085 0.0084 0.0148 0.0128 0.0131 0.0119 0.0121 0.0122 0.0183 0.0209 0.0190 0.0020 0.0030 0.0014 0.0011 0.0014 0.0012 0.0069 0.0071 0.0121 0.0104 0.0060 0.0057 0.0045 0.0008 0.0049 0.0060 0.0083 0.0070 0.0087 0.0080 0.0061 0.0047 0.0068 0.0110 0.0191 0.0237 0.0261 0.0256 0.0017 0.0052 0.0016 0.0050 0.0024 0.0055 0.0095 0.0846 0.0982 0.0049 0.0057 0.0062 0.0056 0.0059 0.0059 0.0053 0.1118 0.1259 0.0090 0.0096 0.0113 0.0147 0.0202 0.0178 0.0170 0.1586 0.1063 0.0178 0.0038 0.0048 0.0077 0.0074 0.0084 0.0062 0.1646 0.1271 0.0080 0.0048 0.0059 0.0054 0.0073 0.0077 0.0068 0.1450 0.1325 0.6157 0.6807 0.6955 0.7288 0.4241 0.4864 0.5016 0.5490 0.5882 0.5868 0.5925 0.6084 0.6026 0.2633 0.2559 0.2253 0.2693 0.3792 0.3226 0.3539 0.4051 0.4490 0.4278 0.4020 0.4459 0.5883 0.5610 0.6676 0.6770 0.7134 0.6639 0.6286 0.6153 0.5438 0.5601 0.6034 0.5716 0.5634 0.6016 0.5851 0.0574 0.0583 0.0623 0.0587 0.0770 0.0871 0.0855 0.1049 0.1038 0.0943 0.0943 0.0969 0.1012 0.0827 0.0879 0.0905 0.1305 0.1469 0.1223 0.1003 0.0947 0.0955 0.2047 0.1132 0.0893 0.0963 0.0801 0.0674 0.0564 0.0524 0.0491 0.1393 0.1209 0.1028 0.0855 0.0739 0.0728 0.0880 0.0974 0.1143 -0.0108 -0.0098 0.0274 0.0588 0.0784 0.1142 0.1344 0.1074 0.1207 0.1332 0.1995 0.2132 0.2162 0.0511 0.0913 0.1273 0.0987 0.2445 0.2687 0.2415 0.1923 0.2355 0.0931 0.1720 0.0427 0.0293 0.0499 0.1262 0.0171 0.0393 0.0651 -0.0390 -0.0103 0.0637 0.0313 0.0493 0.0575 0.2064 0.2606 0.2808 0.5513 0.6247 0.6197 0.5977 0.3451 0.3585 0.3749 0.3932 0.4236 0.4326 0.4470 0.3945 0.3858 0.7083 0.6991 0.6215 0.7254 0.4986 0.6361 0.6199 0.5307 0.4993 0.4946 0.6157 0.5916 0.5574 0.5971 0.5117 0.6427 0.6300 0.5105 0.4787 0.4962 0.5280 0.5578 0.5627 0.5309 0.3728 0.3704 0.2908 18.9119 18.9808 19.1241 19.3059 18.9838 19.0106 19.1163 19.2139 19.3617 19.5645 19.7081 19.8353 20.0200 18.5153 18.4894 18.4634 18.4629 18.3439 18.5361 18.7411 18.8716 18.9900 16.5886 17.1753 17.4343 17.3842 17.5733 17.8126 18.1338 18.3661 18.7157 17.1269 17.3058 17.4815 17.7164 17.9715 18.2499 18.4203 18.5875 18.8429 0.0107 0.0141 0.0144 0.0143 0.0186 0.0246 0.0273 0.0163 0.0132 0.0120 0.0133 0.0116 0.0109 0.0265 0.0271 0.0516 0.0341 0.0341 0.0216 0.0301 0.0204 0.0196 0.0271 0.0148 0.0140 0.0091 0.0294 0.0195 0.0154 0.0197 0.0083 0.0280 0.0290 0.0300 0.0190 0.0180 0.0176 0.0229 0.0184 0.0169 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0104 0.7162 0.1659 0.0789 0.4807 16.7731 0.0844 0.0681 0.0071 0.0075 0.0103 0.0083 0.0071 0.5574 0.5627 0.6435 0.7063 0.7311 0.1290 0.1295 0.1366 0.1408 0.1215 0.1030 0.0597 0.0653 0.0541 0.1258 0.6994 0.6384 0.6488 0.5403 0.4685 17.0294 17.0651 17.0216 17.0273 17.1930 0.0298 0.0248 0.0275 0.0247 0.0323 0.0604 0.0184 0.0063 0.0474 0.0353 73 PGB PGB PGB SGB SGB SGB SGB SGB SGB SGB SGB SGB SHB 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 SHB 2013 SHB SHB SHB SHB SHB SHB SHB STB STB STB STB STB STB STB STB STB TCB TCB TCB TCB TCB TCB TCB TCB TCB TPB TPB TPB TPB TPB TPB TPB 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 0.0350 0.0200 0.0441 0.0869 0.0491 0.0518 0.0125 0.0404 0.0158 0.0122 0.0413 0.0270 0.2200 0.0137 0.0759 0.0731 0.0746 0.1102 0.1078 0.1388 0.1226 0.0710 0.1449 0.1256 0.0323 0.0040 0.0520 0.0748 0.0956 0.0963 0.0593 0.0484 0.0749 0.0973 0.1747 0.2771 0.2153 0.1796 0.1841 0.0466 0.1087 0.1350 0.1244 0.1079 0.1559 0.2087 0.0043 0.0024 0.0050 0.0193 0.0116 0.0123 0.0027 0.0079 0.0029 0.0020 0.0071 0.0043 0.0180 0.0010 0.0051 0.0043 0.0042 0.0059 0.0055 0.0070 0.0067 0.0068 0.0142 0.0126 0.0027 0.0003 0.0034 0.0046 0.0057 0.0057 0.0042 0.0039 0.0065 0.0083 0.0147 0.0255 0.0287 0.0290 0.0306 0.0058 0.0162 0.0128 0.0088 0.0062 0.0084 0.0139 0.0097 0.1038 0.1853 0.0130 0.0116 0.0119 0.0108 0.0105 0.0100 0.0077 0.2380 0.2535 0.0042 0.7375 0.7505 0.7102 0.7313 0.7266 0.7099 0.6542 0.6580 0.6616 0.6710 0.6381 0.6452 0.4886 0.1233 0.1191 0.1087 0.2383 0.2384 0.2203 0.1911 0.1845 0.1603 0.1686 0.1561 0.1512 0.0816 0.1744 0.1514 0.1020 0.0393 0.0482 0.0848 0.0591 0.0748 0.0654 0.1213 0.0808 0.1005 0.1069 0.4340 0.4691 0.5705 0.3643 0.4976 0.4021 0.5388 0.5780 0.5328 0.5313 0.5624 0.6259 0.5712 17.2134 17.2678 17.4033 16.5137 16.5023 16.5770 16.6918 16.7625 16.8751 16.8297 16.9428 16.9912 18.5737 0.0306 0.0316 0.0244 0.0293 0.0224 0.0219 0.0188 0.0178 0.0193 0.0220 0.0194 0.0144 0.0883 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0038 0.5327 0.0721 0.0288 0.7858 18.7827 0.0567 0.0604 0.0047 0.0094 0.0055 0.0051 0.0058 0.1391 0.1153 0.0638 0.0262 0.0254 0.0226 0.0177 0.0169 0.0157 0.0730 0.0718 0.0252 0.0144 0.0155 0.0143 0.0126 0.0087 0.0081 0.1212 0.0810 0.0043 0.0092 0.0075 0.0082 0.0077 0.0095 0.0098 0.6158 0.6420 0.6941 0.6933 0.6712 0.7260 0.7406 0.6333 0.6851 0.6745 0.6366 0.5989 0.0000 0.6320 0.6527 0.6909 0.3794 0.4423 0.4565 0.5843 0.6059 0.5971 0.4983 0.6015 0.6313 0.4023 0.3717 0.3854 0.3705 0.4387 0.5110 0.5668 0.0620 0.0550 0.0566 0.0514 0.0505 0.0507 0.0582 0.0901 0.1057 0.0952 0.0756 0.0668 0.0631 0.0607 0.0590 0.0588 0.0739 0.0876 0.0852 0.0857 0.0832 0.1000 0.1613 0.1618 0.1697 0.2195 0.1153 0.0823 0.0630 0.0534 0.0538 0.0780 0.0515 0.0202 0.0543 0.0909 0.0524 0.0563 0.0727 0.0211 0.0598 0.1109 0.1078 0.1404 0.1564 0.1538 0.1790 0.1710 0.0366 0.0988 0.1031 0.1592 0.2400 0.4278 0.3415 0.2722 0.2859 0.1738 0.1751 0.0739 0.0459 0.0363 0.0597 0.1332 0.4987 0.5279 0.5050 0.4490 0.4780 0.4209 0.3522 0.6062 0.5533 0.5407 0.6219 0.8696 0.7330 0.6712 0.6331 0.6308 0.5717 0.5942 0.4828 0.3937 0.3575 0.2924 0.3184 0.3471 0.3192 0.6328 0.4758 0.5777 0.5110 0.5763 0.5379 0.5059 18.9456 19.1371 19.2706 19.4715 19.5940 19.7161 19.8382 18.8402 18.8993 19.0615 19.4924 19.6207 19.7249 19.8220 19.9327 20.0150 19.0081 18.8838 18.9854 19.0730 19.2766 19.4117 19.5869 19.7654 19.9014 16.5316 17.2840 17.7567 18.1491 18.4819 18.6367 18.7295 0.0203 0.0172 0.0187 0.0233 0.0240 0.0191 0.0183 0.0205 0.0146 0.0119 0.0580 0.0691 0.0467 0.0213 0.0194 0.0170 0.0270 0.0365 0.0238 0.0167 0.0158 0.0161 0.0175 0.0133 0.0047 0.0366 0.0233 0.0122 0.0081 0.0075 0.0110 0.0112 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 74 TPB TPB VAB VAB VAB VAB VAB VAB VAB VAB VAB VCB VCB VCB VCB VCB VCB VCB VCB VCB VIB VIB VIB VIB VIB VIB VIB VIB VIB VPB VPB VPB VPB VPB VPB VPB VPB VPB 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 2012 2013 2014 2015 2016 2017 2018 2019 2020 0.2611 0.2354 0.0462 0.0169 0.0131 0.0217 0.0251 0.0243 0.0284 0.0478 0.0653 0.1255 0.1039 0.1066 0.1203 0.1469 0.1810 0.2549 0.2589 0.2111 0.0627 0.0061 0.0634 0.0609 0.0647 0.1283 0.2255 0.2711 0.2957 0.1013 0.1410 0.1501 0.2142 0.2575 0.2748 0.2283 0.2147 0.2192 0.0206 0.0189 0.0070 0.0023 0.0015 0.0021 0.0019 0.0016 0.0017 0.0028 0.0041 0.0113 0.0099 0.0088 0.0085 0.0094 0.0100 0.0139 0.0161 0.0145 0.0064 0.0007 0.0066 0.0063 0.0059 0.0099 0.0167 0.0202 0.0216 0.0069 0.0091 0.0088 0.0134 0.0186 0.0254 0.0245 0.0236 0.0262 0.1776 0.0970 0.0421 0.0107 0.0100 0.0080 0.0064 0.0049 0.0038 0.1921 0.2042 0.0136 0.0129 0.0144 0.0126 0.0123 0.0098 0.0119 0.2227 0.2206 0.0111 0.0074 0.0079 0.1010 0.0082 0.0083 0.0079 0.1250 0.1179 0.0078 0.0128 0.0083 0.0084 0.0076 0.0093 0.0057 0.0567 0.0546 0.5816 0.5816 0.5238 0.5323 0.4446 0.4840 0.4948 0.5312 0.5318 0.6099 0.5591 0.5818 0.5849 0.5604 0.5741 0.5849 0.5249 0.5883 0.6008 0.6332 0.5212 0.4584 0.4733 0.5667 0.5758 0.6485 0.6908 0.7002 0.6928 0.3594 0.4327 0.4801 0.6025 0.6324 0.6577 0.6866 0.6818 0.6940 0.0795 0.0812 0.1436 0.1327 0.1022 0.0936 0.0654 0.0639 0.0594 0.0581 0.0662 0.1006 0.0907 0.0754 0.0670 0.0610 0.0508 0.0579 0.0662 0.0709 0.1297 0.1038 0.1054 0.1021 0.0836 0.0714 0.0767 0.0728 0.0735 0.0653 0.0637 0.0550 0.0691 0.0751 0.1069 0.1075 0.1119 0.1260 0.2393 0.1855 0.1080 -0.0096 0.0116 -0.0791 0.0385 -0.0376 0.0163 0.0455 0.0814 0.1304 0.1670 0.1978 0.1833 0.1684 0.1618 0.1946 0.1647 0.1846 0.0313 0.1207 0.2414 0.1221 0.1464 0.0873 0.1250 0.1399 0.1560 0.0161 0.0834 0.0790 0.0913 0.0662 0.1252 0.1585 0.1140 0.1277 0.3900 0.4048 0.5930 0.7636 0.8274 0.5014 0.5084 0.5651 0.4784 0.4837 0.3461 0.3987 0.4027 0.3963 0.3918 0.3999 0.4035 0.3465 0.3459 0.3269 0.5570 0.6212 0.4708 0.6026 0.6153 0.5708 0.4420 0.4216 0.3981 0.6002 0.5318 0.5873 0.4718 0.3926 0.3519 0.3421 0.3395 0.2919 18.9180 19.1449 17.0186 17.1126 17.3876 17.5503 17.9340 17.9812 18.0823 18.1521 18.2760 19.8426 19.9661 20.1733 20.3293 20.4849 20.7580 20.7947 20.9244 21.0056 17.9903 18.1577 18.2058 18.2500 18.4649 18.6290 18.7512 19.0333 19.3154 18.4471 18.6135 18.9107 19.0827 19.2482 19.4422 19.5941 19.7483 19.8534 0.0129 0.0118 0.0465 0.0288 0.0233 0.0226 0.0216 0.0149 0.0000 0.0000 0.0000 0.0303 0.1256 0.0231 0.0184 0.0151 0.0114 0.0098 0.0079 0.0062 0.0275 0.0282 0.0251 0.0207 0.0258 0.0249 0.0252 0.0196 0.0174 0.0272 0.0281 0.0254 0.0269 0.0291 0.0339 0.0350 0.0342 0.0341 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 0.0681 0.0604 0.0184 0.0063 0.0474 0.0353 0.0354 0.0279 0.0515 75 Appendix 03 Research results Picture Descriptive statistics Picture Correlation matrix between variables 76 Picture Test results for multicollinearity Picture Pooled OLS output with ROA Picture FEM output with ROA Picture REM output with ROA 77 Picture Breusch and Pagan Lagrangian test with ROA Picture Heteroskedasticity diagnostics with ROA Picture Hausman test with ROA 78 Picture 10 Autocorrelation diagnostics with ROA 79 Picture 11 FGLS output with ROA Picture 12 Pooled OLS output with ROE 80 Picture 13 FEM output with ROE Picture 14 REM output with ROE Picture 15 Breusch and Pagan Lagrangian test with ROE 81 Picture 16 Hausman test with ROE Picture 17 Heteroskedasticity diagnostics with ROE 82 Picture 18 Autocorrelation diagnostics with ROE 83 Picture 19 FGLS output with ROE ... policies to maximize benefits from available resources, minimize costs that may arise The author chooses the topic "Factors affecting Vietnamese commercial bank’s profitability from 2012 to 2020" ... External factors Beside internal factors, bank profitability is also under the influence of external factors or macro-economic factors According to Blerta, B (2014), external factors refer to those... thesisis to provide an analysis of factors affecting the profitability of 22 commercial banks in Vietnam from 2012 to 2020 using Pooled OLS, FEM, REM, FGLS methods The scope of the study is to aim