Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 4, Article 1, Year of publication: 12, December, 2021

Performance of Banking Sector in Bosnia and Herzegovina from 2019 to 2020

AUTHOR

Kristina Peštović, PhD*

*PhD Associate Professor, University in Novi Sad, Faculty of Economics Subotica, Department of Finance and Accountancy

ABSTRACT

ARTICLE INFO

The paper analyzes the performance of banks in Bosnia and Herzegovina in the period from 2019 to 2020 in terms of profitability. Profitability as a measure of the performance of banks was observed from the aspects of trend analysis of net results, analysis of average return on investment and return on equity, analysis of the trend of net profit of leading banks and analysis of profitability factors. The research is based on data from the financial statements of 24 banks registered with the Central Bank of Bosnia and Herzegovina. The results of the research indicate that the banking sector in 2020 will achieve a significantly lower level of profitability compared to the previous year. Observing which factors have a significant impact on profitability, market share and business in the conditions of the crisis in 2020 stand out. Detailed results of the analysis indicate the state of the banking sector in terms of profitability, but also provide guidelines for the development of business policy that should be aimed at combating the negative trend in bank profitability.

Keywords: banking sector, profitability

DOI: 10.7251/FIN2104003P

Corresponding author:
kristina.pestovic@ef.uns.ac.rs