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DEVELOPMENT BANKING IN GREECE 1963-2002
Figure 3: Returns on earning assets
Source: Author’s calculations
Table 3 summarizes these movements. The rise on average returns for ETEBA is
steady and unambiguous as the similar mean and median values indicate. However,
the variability of the ratio rises also. This effect is even more noticeable for Investment
Bank with a standard deviation of 0.45 for the period 1987-97. On the other
hand, ETBA exhibits similar average and mean rates of return for the two last periods
although the variability of the last period’s returns is much greater. Indeed,
the standard deviations and their increase during the period of deregulation is the
most interesting element of these summary statistics as they indicate the much
riskier nature of these returns in the liberalized market for all the three Banks.
Table 3: Return on earning assets: summary statistics
ETEBA Investment Bank ETBA
1964-74 1975-86 1987-2001 1963-74 1976-86 1987-97 1967-74 1975-86 1987-2002
Mean 0.06 0.13 0.19 0.01 0.11 0.42 0.03 0.09 0.09
Median 0.06 0.12 0.18 0.04 0.12 0.28 0.03 0.10 0.10
Std. Dev. 0.01 0.04 0.06 0.11 0.03 0.45 0.005 0.04 0.11
Min. 0.04 0.08 0.09 -0.31 0.07 0.12 0.03 0.04 -0.17
Max. 0.09 0.20 0.33 0.08 0.13 1.46 0.04 0.15 0.41
The previously calculated return on total assets ratio pooled the return that goes
to debt holders with that pertaining to equity holders. However, to obtain a measure
of profitability from the point of view of the owners of the bank, the return on equi-
~ 237 ~