Due to their ease of calculation from financial results, financial rations will be used in the regression analysis.
In the regression analysis of profitability, there will be three dependent variables; return on equity, net profit as well as return on assets. Each of the three variables will be regressed against independent variables, one at a time. It is important to note that return on assets does not only provide information regarding how incomes are generated by every single asset, it also depicts the ability of financial institutions to acquire deposits and invest them for considerable profits. On the other hand, return on equity denotes a measure of returns by shareholders to the