4.4.3 Hypothesis 03
H3: Activity mix impacts negatively on profit.
The activity mix significant value is 0.846 with BOC’s profitability, it is not statistically significant. Therefore there is no evidence to accept the H3 and researcher accept null hypothesis.
Fee income generating banks are more likely to have a negative impact on banks’ profitability, reflecting more intense of competition on national and international basis. Therefore when BOC shifts from interest bearing to non -interest bearing services profitability may decrease, but it is not statistically significant.
4.4.4 Hypothesis 04
H4: There is positive impact of size of the blank on profit.
The results of the analysis suggest that size shows positive effect on profitability …show more content…
So altogether the researcher found out that the management controllable variables of the bank determine the profit of the bank of Ceylon. Among them a special consideration should be forwarded to the efficiency of capital ratio management.
5.2. Recommendations
A well established, healthy banking industry is must for sustainable development of any country. The banking industry in Sri Lanka has great impact in the GDP of Sri Lanka.
A state bank, BOC has to play vital role in implementing policies through various banking operation. But as a commercial organization entity should be profit oriented too.
In the light of the great development and increasing competition in the banking industry of Sri Lanka, and the major challenges faced by Bank of Ceylon due to tremendous performance of other private banks, studying and analyzing the determinants of profitability of Bank of Ceylon. Become a great importance.
Based on the above study and the results the researcher recommends following decisions to Bank of …show more content…
It is measured by total assets of the bank. It has positive relationship with profitability therefore if bank management increased the assets for the purpose to enhance the efficiency of the bank there will be possibility to increase profitability.
However researcher found there is all the internal variables impact to profitability of bank of Ceylon. Because regression analysis indicating bank researcher considered independent variables are explaining 75.8% of profitability. Therefore heavy model fit with variables. Bank management should give a weight to these variables than other external variables when they assess the impact of bank profitability.
And also this research study assists to further researcher to continue under same topic. This study helpful to future researcher to take them independent variables accurately because these variables are strongly model fit with dependant variable. And researcher advice to future researcher if they want to model fit with dependant variable than this research. They should consider macro economic variables also to continue the research
H3: Activity mix impacts negatively on profit.
The activity mix significant value is 0.846 with BOC’s profitability, it is not statistically significant. Therefore there is no evidence to accept the H3 and researcher accept null hypothesis.
Fee income generating banks are more likely to have a negative impact on banks’ profitability, reflecting more intense of competition on national and international basis. Therefore when BOC shifts from interest bearing to non -interest bearing services profitability may decrease, but it is not statistically significant.
4.4.4 Hypothesis 04
H4: There is positive impact of size of the blank on profit.
The results of the analysis suggest that size shows positive effect on profitability …show more content…
So altogether the researcher found out that the management controllable variables of the bank determine the profit of the bank of Ceylon. Among them a special consideration should be forwarded to the efficiency of capital ratio management.
5.2. Recommendations
A well established, healthy banking industry is must for sustainable development of any country. The banking industry in Sri Lanka has great impact in the GDP of Sri Lanka.
A state bank, BOC has to play vital role in implementing policies through various banking operation. But as a commercial organization entity should be profit oriented too.
In the light of the great development and increasing competition in the banking industry of Sri Lanka, and the major challenges faced by Bank of Ceylon due to tremendous performance of other private banks, studying and analyzing the determinants of profitability of Bank of Ceylon. Become a great importance.
Based on the above study and the results the researcher recommends following decisions to Bank of …show more content…
It is measured by total assets of the bank. It has positive relationship with profitability therefore if bank management increased the assets for the purpose to enhance the efficiency of the bank there will be possibility to increase profitability.
However researcher found there is all the internal variables impact to profitability of bank of Ceylon. Because regression analysis indicating bank researcher considered independent variables are explaining 75.8% of profitability. Therefore heavy model fit with variables. Bank management should give a weight to these variables than other external variables when they assess the impact of bank profitability.
And also this research study assists to further researcher to continue under same topic. This study helpful to future researcher to take them independent variables accurately because these variables are strongly model fit with dependant variable. And researcher advice to future researcher if they want to model fit with dependant variable than this research. They should consider macro economic variables also to continue the research