Banks’ Earnings: An Empirical Evidence of the Influence of Economic and Financial Markets Factors

33 Pages Posted: 12 Jun 2012 Last revised: 19 Jun 2015

Stéphane Albert

Université Paris I Panthéon-Sorbonne - Institut d'Administration des Entreprises de Paris (IAE Paris)

Hervé Alexandre

Université Paris Dauphine - DRM-CEREG

Date Written: June 11, 2012

Abstract

Since the 1990s’, a relatively ample research has been undertaken regarding the measurement of the volatility of bank earnings over time. The comparison between traditional deposits-loans banking activities and financial activities is a further specific theme in bank performance research. Few analyses have however addressed the explanation of the volatility of earnings. The present paper provides with a comprehensive analysis of the influence of economic and financial factors through the sub-components of net earnings, using a panel of European banks.

Keywords: net interest income, bank commissions, trading, loan impairments, bank earnings, earnings volatility, risk factors, diversification

JEL Classification: G21, G28, L25

Suggested Citation

Albert, Stéphane and Alexandre, Hervé, Banks’ Earnings: An Empirical Evidence of the Influence of Economic and Financial Markets Factors (June 11, 2012). Available at SSRN: https://ssrn.com/abstract=2081959 or http://dx.doi.org/10.2139/ssrn.2081959

Stéphane Albert (Contact Author)

Université Paris I Panthéon-Sorbonne - Institut d'Administration des Entreprises de Paris (IAE Paris) ( email )

21, Rue Broca
Paris, 75005
France

Hervé Alexandre

Université Paris Dauphine - DRM-CEREG ( email )

place du Maréchal de Lattre de Tassigny
cedex 16
Paris, 75775
France

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