Abstract:

Banks, one of the most important actors of a strong economic system, play an important role in the macroeconomic welfare level of the country. Therefore, measuring the financial performance of banks and revealing the factors affecting this performance reveals great importance. In this research, the effect of financial ratios on return on assets and return on equity was examined with panel regression analysis for 14 Iraqi banks between 2015 and 2021. Return on assets and equity were used as dependent variables, logarithm of total assets, total debt/total assets, loans and receivables/total assets, other operating expenses/total assets, capital adequacy ratio, total deposits/total assets, interest income/interest expenses, non-performing loans/total loans and liquid assets/total assets ratios were used as independent variables in the models. According to the analysis results, it has been determined that the asset and equity profitability of banks in Iraq are affected by the asset size of the banks, the ratio of loans and receivables to total assets, the share of deposits in total assets, capital adequacy ratio, the ratio of interest income to interest expenses and liquid assets.

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