The Impact of the Covid-19 Pandemic on the Profitability of Large Commercial Banks in the Republic of North Macedonia

Abstract

The purpose of this study is to investigate the impact of the current Covid-19 pandemic on profitability ratios of large commercial banks in the Republic of North Macedonia. By using data over the period 2004 – 2020, ten profitability indicators are examined. These indicators are investigated by comparing their values before and during the Covid-19 pandemic. Overall, the study reveals preliminary evidence that large commercial banks are affected by the Covid-19 pandemic. So far, the profitability of large banks has not changed significantly due to Covid-19 and they keep satisfactory profitability levels. However, this impact should be investigated furthermore in the next studies because the current pandemic has long-term effects.