Analyze of Profitability in Azerbaijan Banking Sector: A Study on Kapital Bank and Pasha Bank

In modern times, the banking sector plays a major role in people's daily lives, in the activities of enterprises and in the economy. Especially in recent years, with the rapid development of technology and the expansion of the fields of activity of banks, the importance of banks has increased even more. As is known, the main goal of banks is to generate income from the services they provide and their activities. However, like all companies, banks also face or may face many types of risks in their activities and there are many other factors that affect their activities. Banks must take measures to prevent these risks and make decisions regarding factors that may affect their activities. One of these is decisions regarding capital structure. Capital structure has a significant impact on the profitability of the bank. This study first provides information about the capital structure in general, factors affecting the capital structure and decisions regarding capital structure. Then, a study was conducted on Kapital Bank and Pasha Bank regarding return on assets (ROA) and return on equity (ROE).