Income diversification and profitability: evidence from Vietnam banking sector from 2005-2017

By Phung Thien Van (VNP 21)

Supervisor: Dr. Vo Xuan Vinh

Abstract:

In the last few years it has been possible to observe decreasing trend in interest margins of Vietnam commercial banks. At the same time, a number of commercial banks increasingly moved part of their business from interest to fee-earning activities. In this paper, the relationship between profitability of commercial banks and non-interest income generating activities (income diversification) is estimated by using yearly data of 25 local commercial banks in Viet Nam over the period 2005-2017.