The effect of capital structure, operating efficiency and non-interest income on bank profitability: new evidence from Asia

Purpose The Asian banking system has been appreciated with many distinct qualities including consistent in profitability. Many studies have examined the profitability of sector from diverse perspectives. However, on bank connection to capital structure, operating efficiency and non-interest income are only a few. This study investigates influence structure as estimated by leverage ratio long-term debt, industry 28 countries Asia. Design/methodology/approach paper utilizes fixed effect regression model involving panel data sample 492 banks Asia for time span 15 years 2004 2018. Findings results confirm that an increase total debt increases profit margin supported agency cost theory, suggesting financing firm. In addition, findings reveal lowering expenses managing costs effectively can boost bank. Furthermore, plays vital role when interest rates lower. Hence suggests careful investment this generate well arena. Originality/value examines impact measure along operational which contributes understanding existing literature.