An In-Depth Evaluation of the Financial Performance of Publicly Listed Banks in the Philippines Through DuPont Analysis (2018-2022)

The study dives into the financial performance of Philippine banks, specifically examining Returnon Equity (ROE), a key metric used to gauge a company's efficiency in using investor capital to generateprofits. The study also delves into various aspects, including the banks' business profiles in terms of ageand size, along with their financial performance indicators such as profit margin, total asset turnover, andequity multiplier. This study adopts an ex-post facto research design, examining data from universal andcommercial banks in the Philippine banks during the 2018-2022 period. The findings offer acomprehensive view of Philippine banks' financial landscape. On average, these banks have been inoperation for approximately 47.61 years, with a typical size of 29.69 units. In terms of profit margin, theaverage stands at 10%, ranging from -7% to an impressive 232%. Total asset turnover averages at 79%,spanning from 31% to 212%. The equity multiplier has an average of 2.99, with a low of 1.51 and a highof 6.05. DuPont analysis reveals a ROE of 155%, demonstrating a significant relationship between firmsize and financial performance, supported by a p-value of 0.041. This resource explains the intricacies ofDuPont analysis and its connection to Return on Equity, providing a solid foundation for making moreinformed investment decisions for both current and prospective investors in the Philippine banking sector.