Evaluating the financial performance of bank branches

Pastor, Jesús T., Lovell, C. A. Knox and Tulkens, Henry (2006) Evaluating the financial performance of bank branches. Annals of Operations Research, 145 1: 321-337. doi:10.1007/s10479-006-0038-3


Author Pastor, Jesús T.
Lovell, C. A. Knox
Tulkens, Henry
Title Evaluating the financial performance of bank branches
Journal name Annals of Operations Research   Check publisher's open access policy
ISSN 0254-5330
1572-9338
Publication date 2006-07-01
Year available 2006
Sub-type Article (original research)
DOI 10.1007/s10479-006-0038-3
Volume 145
Issue 1
Start page 321
End page 337
Total pages 17
Place of publication Secaucus, NJ, United States
Publisher Springer New York
Language eng
Subject 14 Economics
1402 Applied Economics
Abstract We evaluate the financial performance of most of the branch offices of a large European savings bank for a recent accounting period. We employ a complementary pair of nonparametric techniques to evaluate their financial performance, in terms of their ability to conserve on the expenses they incur in building their customer bases and providing customer services. We find variation in the ability of branch offices to perform this task, and agreement on the identity of the laggard branches. We then employ parametric techniques to determine that the list of indicators on which their financial performance is evaluated can be reduced without statistically significant loss of information to bank management. Both findings suggest ways in which the bank can increase the profitability of its branch network.
Keyword Performance indicators
Variable deletion tests
Banking
Q-Index Code C1
Institutional Status Non-UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
School of Economics Publications
 
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Citation counts: TR Web of Science Citation Count  Cited 11 times in Thomson Reuters Web of Science Article | Citations
Scopus Citation Count Cited 14 times in Scopus Article | Citations
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Created: Tue, 15 Dec 2009, 19:15:03 EST by Macushla Boyle on behalf of Faculty of Business, Economics & Law