Abstract
The main objective of this study is to find out and examine the determinants of banks’ profitability in Haiti. The sample is a data set of the eight banks operating in Haiti for the period 2017 to 2021. The results prove that, among the independent variables that impact banks profitability in Haiti significantly and positively, Equity-tototal assets (EA ratio), which is used to proxy capital adequacy in this study, is the strongest. In addition, diversification is the second most influential independent variable in terms of positive effect. Average yield on loans does not show any significant impact on ROA and ROE. In contrast, the efficiency ratio, which is used to proxy management efficiency, has a significant negative effect on banks’ profitability in Haiti. Likewise, Nonperforming loans (NPL), which is the measure of asset quality, and Liquid Assets -to-Deposit (LAD), a proxy for liquidity, show a negative influence on banks’ profitability. The macroeconomic variables do not have any effect on banks’ profitability in Haiti. The private banks are more profitable than the public one. And there are significant differences between those two groups.
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