Comparative Analysis Of Return On Equity Ratios With Dupont Method To The Banking Sector Groups in Turkiye

Abstract

In this study, the return on equity of the banking groups that constitute the banking sector in Turkiye was examined with Dupont analysis. Although banks in Turkiye have high equity profitability, it is expected that the differences in the working principles of each bank group will be reflected in their comparative advantages. Dupont analysis is a method that allows the separation of the components of profitability, as it shows the return on equity by also separating operational efficiency, asset efficiency, and leverage ratios. For this reason, this study includes a detailed analysis of the return on equity of deposit banks, participation banks, and development and investment banks that constitute the sector in the last five years. The results show that the differences in working principles are also reflected in the comparative advantages in the components that constitute profitability.

Keywords: Return on Equity, Dupont Analysis, Deposit Banks, Participation Banks, Development and Investment Banks