THE RELATIONSHIP BETWEEN FINANCIAL STRUCTURE AND PROFITABILITY OF VIETNAMESE JOINT-STOCK COMMERCIAL BANKS

This study examines the relationship between financial structure and profitability of Vietnamese joint-stock commercial banks during the period 2015-2024. Using panel data from 20 listed banks, the study applies the Fixed Effects Model (FEM), Random Effects Model (REM), and Dynamic Fixed Effects Model (DFEM) to evaluate the effects of financial structure on profitability, measured by Return on Assets (ROA), Return on Equity (ROE), and Net Interest Margin (NIM). The empirical results indicate that financial structure significantly influences bank profitability. In particular, the equity-to-total assets ratio (EOA) has a positive effect on ROA, highlighting the importance of equity capital in improving financial performance. Among the control variables, the cost-to-income ratio (COI) and inflation (INF) also significantly affect profitability. Based on these findings, the study provides managerial and policy implications to enhance the financial stability and sustainable development of Vietnamese joint-stock commercial banks by strengthening equity capital, expanding customer deposits, and optimizing lending activities.