DETERMINANTE PROFITABILNOSTI BANAKA U HRVATSKOJ/PROFITABILITY DETERMINANTS OF BANKS IN CROATIA

Banks can be differed considering numerous criteria. Only few of them are the size of their assets, scale and scope of their operations, cost and revenue structure etc. These mentioned categories, as well as numerous macroeconomic variables influence their profitability. The aim of this paper is to detect the specific characteristics of the bank and macroeconomic conditions which together influence the overall bank's profitability. The results of the analysis indicated that in the short term and stable macroeconomic conditions, higher profitability is accomplished by the well-capitalized banks with larger market share, which are also efficient in managing their operating costs and able to pass "non-earnings assets" costs to their clients. [PUBLICATION ABSTRACT]