Financial Performance Analysis of Banks in the Republic of North Macedonia: An Overview

Abstract

The purpose of this study is to analyze the financial performance of banks which operate in the Republic of North Macedonia. The study examines historical data of the banking system which consists of fifteen banks. Several financial indicators and ratios are examined, including the well-known ones, Rate of return on average assets (ROAA), Rate of return on average equity (ROAE), Profit (loss) of operation/Total regular income, thus showing that the financial performance of banks is more than satisfactory. Banks are analyzed by the group classification and differences are found between them. The banking system has generated quite considerable net interest income and large banks have performed much better than medium and small-sized banks.