Abstract:
The aim of this research was to examine the effect of internal Factors on the profitability of Nib
International Bank Share Company. The bank has a total capital of around 3 billion in the year
of June, 30/2018 report. The scope limitation was to assess only the effect of internal factors that
affect the profitability of Nib international bank Share Company. This study was used the
secondary time series data to analyze the Effect of internal factors on the independent variables
of (asset quality, capital adequacy, operational cost efficiency and liquidity) and the dependent
variable of profitability measured by (ROA),of Nib International bank share company. The Bank
from2003 to 2018 with 16 years observations. Data was gathered from secondary source such as
financial statements and balance sheets of the Nib international bank Share Company.
Furthermore a descriptive and explanatory research design and linear regration model was used
to examine the dependent and independent variables. This research is a quantitative research
approach was used. However, the result indicates that there is a significant positive correlation
between ROA of Nib international bank with capital adequacy ratio and liquidity variables, as
well as a negative correlation with ROA of Nib international bank share company and asset
quality and operational cost efficiency variables. Moreover, it is recommended that empirical
studies should be undertaken in the same field to find out what more internal factors could affect
profitability of banks.
