# **Table 4: Correlation Matrix of Variables used in Regression Analysis**

* significant at 10%; ** significant at 5%, *** significant at 1% NEEDS

||**ROA **|**ROE **|**Net**<br>**Interest**<br>**Margin**<br>**(Assets)**|**Interest**<br>**Income**<br>**to Assets**|**Interest**<br>**Expenses**<br>**to Assets**|**Total**<br>**Securities to**<br>**Assets (All**<br>**Countries)**|**Overheads**<br>**to Assets**|**Personal**<br>**Expenses**<br>**to Assets**|**Employment**<br>**to Assets**|**Wage**<br>**(Personal**<br>**Expense)**|
|---|---|---|---|---|---|---|---|---|---|---|
|**ROE**|0.73***|1|||||||||
|**Net Interest Margin (Assets)**|0.41***|0.29***|1||||||||
|**Interest Income to Assets**|0.15***|0.13***|0.26***|1|||||||
|**Interest Expenses to Assets**|-0.16***|-0.05|-|0.80***|1||||||
|**Total Securities to Assets (All Countries)**|0.003|0.04|-0.02|0.52***|0.52***|1|||||
|**Overheads to Assets**|-0.10**|-0.16***|0.37***|0.10***|-0.10***|-0.09**|1||||
|**Personal Expenses to Assets**|-0.10**|-0.28***|0.3***|0.10**|-0.10**|-0.17***|0.83***|1|||
|**Employment to Assets**|-0.01|-0.11**|0.12**|0.05|-0.02|-0.13**|0.29***|0.5***|1||
|**Wage (Personal Expense)**|0.04|0.08|-0.18**|0.31***|0.29***|0.35***|-0.04|0.03|-0.68***|1|
|**Wage (Overheads)**|0.02|0.05|-0.01|0.11*|0.06|0.24*|0.12*|-0.10*|-0.69*|0.93*|
|**Loan Loss Provisions to Gross Loans**|-0.27***|-0.19***|0.03|0.03|0.05|0.03|-0.005|0.04|0.34***|-0.30***|
|**Dummy Public Ownership**|-0.12***|-0.11***|-0.01|-0.11***|-0.13***|0.03|-0.20***|-0.02|0.19***|-0.23***|
|**Dummy Foreign Ownership**|0.06|0.06|0.03|-0.14***|-0.21***|-0.31***|0.22***|0.16***|0.15***|-0.17***|
|**Dummy Listed**|0.15***|0.09**|-0.06|-0.07*|-0.16***|-0.29***|0.20***|0.23***|0.080*|0.01|
|**Lag Total Assets (Log)**|-0.001|0.05|-0.05|0.04|0.03|0.17***|-0.30***|-0.23***|-0.34***|0.38***|
|**Non-Interest Income to Assets**|0.21***|0.12***|0.03|-0.14***|-0.15***|-0.31***|0.38***|0.37***|0.40***|-0.16***|
|**Deposits to Assets**|0.03|0.13***|-|0.29***|0.49***|0.36***|-0.26***|-0.14***|-0.09*|0.12**|
|**Loans to Assets**|0.07*|-0.04|0.19***|0.02|-0.10***|-0.46***|0.23***|0.40***|0.24***|-0.23***|
|**PublicOwnership*Listed**|-0.01|-0.02|0.05|-0.08**|-0.11***|-0.09**|0.1***|0.15***|0.01|-0.03|

||**Wage**<br>**(Overheads)**|**Loan Loss**<br>**Provisions**<br>**to Gross**<br>**Loans**|**Dummy**<br>**Public**<br>**Ownership**|**Dummy**<br>**Foreign**<br>**Ownership**|**Dummy**<br>**Listed**|**Lag Total**<br>**Assets(Log)**|**Non-Interest**<br>**Income to**<br>**Assets**|**Deposits to**<br>**Assets**|**Loans to**<br>**Assets**|
|---|---|---|---|---|---|---|---|---|---|
|**Wage (Overheads)**|1|||||||||
|**Loan Loss Provisions to Gross Loans**|-0.41***|1||||||||
|**Dummy Public Ownership**|-0.22***|0.21***|1|||||||
|**Dummy Foreign Ownership**|-0.14***|0.007|-0.34***|1||||||
|**Dummy Listed**|0.04|-0.20***|-0.27***|0.41***|1|||||
|**Lag Total Assets (Log)**|0.33***|-0.15***|0.48***|-0.24***|0.09**|1||||
|**Non-Interest Income to Assets**|-0.23***|0.24***|-0.08**|0.25***|0.31***|-0.21***|1|||
|**Deposits to Assets**|0.01|-0.05|-0.08**|-0.16***|-0.12***|0.13***|-0.29***|1||
|**Loans to Assets**|-0.18***|-0.08*|0.07**|0.15***|0.41***|0.07*|0.35***|-0.17***|1|

37