Impact of income diversification on the business performance of Vietnamese commercial banks

Figures & data

Table 1. Description of variables

Variables	Symbols	Formula
Performance	ROA	Profit after tax/Average total assets
	ROE	Profit after tax/Average equity
Diversified income	DIV	1—(INT^2 + NON^2) INT = Net interest income/Operating income NON = Non-interest income/Operating income
Bank size	SIZE	Logarit (Total assets)
Capital structure	ETA	Equity/Assets
Asset growth rate	GR	(GR1—GR0)/GR0
Scale of credit	LTA	Customer Loans/Total assets
Loan provisions	LLP	Loan provisions/Total assets
Deposit size	DTA	Customers and Credit institutions provisions/Total assets
Management efficiency	OTR	Operating costs/Total operating income
Economic growth rate	GDP	Fund from IMF
Inflation rate	INF	Fund from IMF

(Source: Compiled by the authors)

Table 2. Descriptive statistics of variables

Variables	Number of Observations	Average	Standard deviation	Minimum value	Maximum value
ROA	319	0.0089	0.0083	−0.0599	0.0557
ROE	319	0.0969	0.0823	−0.5633	0.2957
DIV	319	1.0710	0.0944	0.0098	0.6533
SIZE	319	32.073	1.3337	28.067	34.96
ETA	319	0.1045	0.0623	0.0406	0.4611
GR	319	0.2026	0.2476	−0.3924	1.4701
LTA	319	0.5447	0.1364	0.1473	0.8006
LLP	319	0.0071	0.0029	0.0011	0.0255
DTA	319	0.7215	0.1594	0.0472	0.9053
OTR	319	0.7940	0.1882	0.1435	1.5563
GDP	319	5.9368	1.2608	2.9	7.08
INF	319	5.7326	4.8934	0.63	18.58

Source: : Results calculated by the authors

Table 3. Matrix of correlation coefficients between variables in the model

	DIV	SIZE	ETA	GR	LTA	LLP	DTA	OTR	GDP	INF
DIV	1.0000
SIZE	−0.0497	1.0000
ETA	−0.0347	−0.7507	1.0000
GR	−0.0027	−0.0622	−0.0894	1.0000
LTA	−0.1643	0.3985	−0.2541	−0.1974	1.0000
LLP	−0.0884	0.2142	0.0356	−0.2607	0.4418	1.0000
DTA	0.0144	0.4717	−0.6706	0.0223	0.4301	−0.0831	1.0000
OTR	0.9994	−0.0583	−0.0363	−0.0049	−0.1648	−0.0945	0.0224	1.0000
GDP	0.0136	−0.0519	0.0097	0.0878	0.0151	−0.1118	0.0185	0.0150	1.0000
INF	0.1469	−0.2060	0.1671	0.1476	−0.3535	−0.0716	−0.1467	0.1425	0.0660	1.000

Source: : Results calculated by the authors

Table 4. Regression results

Variables	ROE	ROA
DIV	0.0810***	0.00975***
SIZE	0.0230***	0.000916***
ETA	−0.0153	0.0374***
GR	0.0293***	0.00384***
LTA	0.0766***	0.00702***
LLP	−2.820***	−0.299***
DTA	−0.0384**	0.00391*
OTR	−0.242***	−0.0290***
GDP	0.00237*	−0.0000366
INF	0.00229***	0.000253***
AR1	0.058	0.010
AR2	0.105	0.339
Sargan	0.000	0.000

* p < 0,1 ** p < 0,05 *** p < 0,01

Source: Authors’ calculation results