Examining the Financial Performance of State-Owned Banks Using the DuPont Financial Analysis Method

Avcı P., Yaşar E., Sümerli Sarıgül S.

7. International CEO (Communication, Economics, Organization) Social Sciences Congress, Toskent, Uzbekistan, 23 - 24 September 2023, pp.701-709

  • Publication Type: Conference Paper / Full Text
  • City: Toskent
  • Country: Uzbekistan
  • Page Numbers: pp.701-709
  • Kayseri University Affiliated: Yes

Abstract

The aim of this study is to examine the financial performances of state-owned banks in the Turkish Banking Sector with DuPont financial analysis technique. In the study, the return on assets and equity of state-owned banks Ziraat Bankası A.Ş., Türkiye Halk Bankası A.Ş. and Türkiye Vakıflar Bankası T.A.O. banks for the years 2013-2022 are calculated and interpreted by using the consolidated balance sheet and income statement data of banks. The findings obtained are that the bank with the highest return on assets in the 2014-2021 period was the Republic of Turkey Ziraat Bankası A.Ş. and the bank with the highest return on assets in 2013 was Türkiye Halk Bankası A.Ş. In addition, it is determined that the bank with a high return on equity capital in 2013-2019 is the Republic of Turkey Ziraat Bankası A.Ş. and in 2020-2022 it is determined that Türkiye Vakıflar Bankası T.A.O. is the bank with a high return on equity capital. Finally, the 10-year average DuPont values of state-owned banks are found to be the Republic of Turkey Ziraat Bankası A.Ş. (14.2%), Türkiye Vakıflar Bankası T.A.O. (13.6%) and Türkiye Halk Bankası A.Ş. (13.1%), respectively. In conclusion, these findings provide important advice to bank managers. Keywords: DuPont method, Bank, Financial Performance, Return on Equity