Identifying the Effective Factors on Financial Performance of Bank Branches

The main aim of this paper is to identify and distinguish the effective factors on financial performance of bank branches in Tehran. Identification of such factors is important because it can be a proper guideline to codify strategies and adaptive decision making in order to development and proper management of bank branches. To do this, there are many parameters to locate the bank branches and to control all these parameters, much time and costs are needed. while such of these parameters may be ineffective on location of bank branches. Hence, the study of key parameters can lead to saving time and money. On the other side, the integration of bank branches into state and private banks shows the existing problem related to determining in location of bank branches.In present study, after examining subject's discourse and conducting pre-planned and organized interviews with directors of state banks, we explain and describe the effective factors on financial performance of banks. According to these findings and collecting data and by using correlation analysis, 14 main factors which all are effective in bank’s performance are introduced. These factors are: the age of bank branches, number of business units, population growth rate, number of illiterates, number of hotels and restaurants, number of residential units, the age between 50-45, 55-59, 60-64, 70-74, 75-79, more than 80-year-old and the number of wholesales. Therefore, each parameter is explained and discussed. At the end, based on these findings, many practical suggestions are presented for state and private banks.

Identifying the Effective Factors on Financial Performance of Bank Branches Keywords:

Financial performance , Branches of bank , Correlation analysis , Financial , Iranian bank , Statistical method