Table 2 Study variables for bank financial sustainability

Financial sustainability

Composite index of financial sustainability

Index obtained based on Eq. (5)

Annual reports (2011 to 2020)

Return on Asset (ROA)

Profit before interest and tax by total asset

Annual reports (2011 to 2020)

Economic value added (\({{\text{EVA}}}_{it}\))

Net cash operating profit less imputed interest charges

Annual reports (2011 to 2020)

Bank capitalisation

Bank capital strength (EQ/TA)

Equity capital divided by total asset

Annual reports (2011 to 2020)

\({DummCap}_{it}\)

Dummy where 1 denote RCB is operating with at least the minimum capital and 0 otherwise

\({DummTim}_{it}\)

Dummy variable where 1 denote post-recapitalisation period (2017–2020) and 0, for pre-recapitalisation era (2011–2016)

Dividend policy

Dividend pay-out

Proportion of earnings available to shareholders paid out as dividends

Annual reports (2011 to 2020)

Industry specific variables

Market share \(({{\text{ms}}}_{it})\)

Proportion of individual bank’s total assets to total asset of all banks included in the sample

Apex Bank annual report (2011 to 2020)

Herfindahl–Hirschman index (HHI)

Sum of the squared market share of total assets for each bank included in the sample

Apex Bank annual report (2011 to 2020)

Bank specific variables

Credit risk (\({\text{LP}}/{\text{TL}}\))

Loan loss provision to total loan

Annual reports (2011 to 2020)

Income diversification (NI/TA)

Ratio of non-interest income to total assets

Annual reports (2011 to 2020)

Loan intensity (TL/TA)

Ratio of total loan to total assets

Annual reports (2011 to 2020)

Bank size (SIZE)

Logarithm of total assets

Annual reports (2011 to 2020)

Macroeconomic variables

Economic development (GDP)

Logarithm of gross domestic product (GDP)

WD1 (2020)

Financial sector development (SM/GDP)

Ratio of stock market capitalization to GDP

IFS (2020)

Macroeconomic risk (INFL)

Rate of inflation (INFL)

GSS (2020)