The Effect of Capital Adequacy on Profitability: A Comparative Study Between Samba and Saab Banks of Saudi Arabia (original) (raw)

This study is aimed at finding out the effect of capital Adequacy on profitability between two banks SAMBA and SABB. The necessary data used for analysis were collected from secondary sources. A descriptive analysis was used in testing the hypotheses. Results indicated that, Model 1 SABB bank shows a low positive correlation relationship between the ROA and ROE and a high positive relationship between ROA and CCA, ECA, TCA, CIR, DE. A low negative relationship between ROA and TRC, BS, AG, AL. The ROE has a positive relationship with CCA, ECA, TCA, TRC, BS. A negative relationship between ROE and CIR, AG, AL, DA. Furthermore, Model 2 SAMBA bank shows a high positive correlation relationship between ROA and ROE and a positive relationship between ROA and DE. A negative relationship between ROA and CCA, ECA, TCA, CIR, TRC, BS, AG, AL. A positive relationship between ROE and CIR, DE, and a negative relationship with CCA, ECA, TCA, TRC, BS, AG, AL. The authors suggest that more empirical...