Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective

Kweh, Qian Long; Lu, Wen-Min; Tone, Kaoru; Liu, Hsian-Ming

doi:10.1186/s40854-023-00531-0

Financial Innovation

Table 3 Benchmarking analysis

From: Evaluating the resource management and profitability efficiencies of US commercial banks from a dynamic network perspective

Year	First stage				First/Second stage		Second stage
	Input		Carryover (Input)	Carryover (Undesirable)	Intermediate		Exogenous input	Carryover (Input)	Carryover (Undesirable)	Output
	Staff expenses	Other expenses	Bank premises	Total debts	Deposits	Investments	Interest expenses	Equity	Nonperforming assets	Interest income	Noninterest income
Panel A: Frontier projections for reduction in inputs and addition in outputs by year and percentage (%)
2010	− 36.8	− 48.2	− 6.6	− 29.9	11.4	76.1	− 30.2	44.2	− 50.6	19.5	273.3
2011	− 49.5	− 32.2	8.7	− 28.4	− 9.7	73.9	− 16.9	28.7	− 26.4	67.4	649.4
2012	− 20.1	− 22.8	− 23.9	− 24.3	22.3	92.3	− 37.8	36.9	− 35.3	27.1	351.6
2013	− 20.7	− 20.3	− 20.3	− 30.4	28.3	80.4	− 41.7	40.8	− 34.1	36.5	337.8
2014	− 19.0	− 20.4	− 23.6	− 32.2	28.7	86.5	− 40.7	40.0	− 33.9	47.9	342.4
2015	− 19.1	− 21.6	− 19.5	− 34.5	30.1	71.0	− 38.6	39.6	− 29.5	38.9	322.2
2016	− 24.0	− 23.9	− 24.3	− 37.7	15.1	84.9	− 34.5	25.7	− 37.1	18.5	249.0
2017	− 24.2	− 21.7	− 28.4	− 41.6	16.8	90.4	− 32.0	23.6	− 42.2	19.2	278.4
2018	− 26.1	− 25.0	− 28.0	− 41.1	9.8	114.3	− 35.3	18.2	− 39.7	19.9	287.7
2019	− 24.1	− 25.3	− 21.2	− 42.5	8.7	114.6	− 35.1	19.5	− 43.7	21.5	248.5
2020	− 18.7	− 27.2	− 18.7	− 35.9	16.9	141.9	− 39.9	7.5	− 45.3	13.8	306.3
Panel B: Comparison between bank efficiency in transforming resources to generate profitability (the variables are measured in millions of US dollars)
Top 4	19,946.66	49,026.07	9,234.25	252,923.84	871,277.73	248,305.95	8,261.75	128,205.95	6,904.00	28,103.14	31,370.30
Bottom 4	88.65	298.74	118.66	1,811.22	7,329.40	1,905.77	111.15	1,238.27	102.87	294.43	27.45

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