The analysis of profitability of Croatian banking system

Profitabilnost predstavlja temeljni cilj poslovanja poslovnih banaka. Na profitabilnost banke utječu različiti unutarnji i vanjski čimbenici. Profitabilnost banaka najčešće se mjeri računovodstvenim modelom, a dva najčešće korištena računovodstvena pokazatelja profitabilnosti su profitabilnost prosječne ukupne imovine i profitabilnost prosječnog vlasničkog kapitala. Cilj rada je odrediti profitabilnost bankovnog sustava Republike Hrvatske i istražiti čimbenike koji utječu na njegovu profitabilnost. Rezultati istraživanja pokazali su da je profitabilnost banaka u Hrvatskoj u 2014. bila na najnižoj razini od 1998. Dodatno, u 2014. godini banke u Hrvatskoj imale su veću profitabilnost ukupne imovine, ali manju profitabilnost kapitala u odnosu na banke u Europskoj uniji.Profitability is a fundamental objective of the business of commercial banks. Bank's profitability is influenced by various internal and external factors. Profitability is usually measured by the accounting model and the two most widely used accounting profitability indicators are the return on average assets and the return on average equity. The aim of this paper is to determine the profitability of Croatian banking system and explore the factors that influence its profitability. The results indicated that the profitability of banks in Croatia in 2014. was at its lowest level since 1998. In addition, in 2014. banks in Croatia had higher return on assets and a lower return on equity compared to banks in the European Union