Author(s):
Pallavi Kishore, Achintha Nirman Senanayake
Email(s):
P.Kishore@mdx.ac.ae
DOI:
10.52711/2321-5763.2024.00020 
Address:
Pallavi Kishore1, Achintha Nirman Senanayake2
1HOD, Accounting and Finance Department, Senior Lecturer, Accounting and Statistics, Middlesex University, Dubai.
2Student MSc Banking and Finance Senior Relationship Manager - Wholesale Banking RAK Bank, Middlesex University Dubai.
*Corresponding Author
Published In:
Volume - 15,
Issue - 2,
Year - 2024
ABSTRACT:
Traditionally banks have earned income from lending to customers by earning interest, nevertheless, as a result of competition in the banking industry, banks have been actively looking at alternatives, such as non-interest income. This study uses random effects panel data techniques to analyse the impact of banks’ non-interest income on profitability for the top 23 publicly listed banks, based on asset-size, in the GCC region for the period 2012 to 2017. The study reveals that, variables such as Non-Performing Loans to Total Loans (NPL), Deposit growth (DG), Real Estate Loans to Total Loans (RE), Dividend Payout Ratio (DP), GDP Growth (GDP), Government ownership (GOV) are statistically significant in explaining changes in Return on Equity (ROE). The results of this study are essential for senior management teams of banks in the region as well as for regulators who monitor the market regularly for improvements. Despite the importance of the subject, there are hardly any studies conducted to test the relationship between non-Interest income to the profitability of banks in the GCC region as a whole; thus, this study aims to fill the gap by selecting a sample of banks from the GCC region.
Cite this article:
Pallavi Kishore, Achintha Nirman Senanayake. Does Non-Interest Income Contribute Towards Profitability Yet? A Case study of the Banks in the GCC. Asian Journal of Management. 2024;15(2):117-6. doi: 10.52711/2321-5763.2024.00020
Cite(Electronic):
Pallavi Kishore, Achintha Nirman Senanayake. Does Non-Interest Income Contribute Towards Profitability Yet? A Case study of the Banks in the GCC. Asian Journal of Management. 2024;15(2):117-6. doi: 10.52711/2321-5763.2024.00020 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2024-15-2-6
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