منصور صوفی

Banks play an important role in the growth and development of any economy. A profitable banking system enhances economic stability and efficiency to mitigate the impacts of sudden macroeconomic shocks. To be more efficient and profitable, banks need to recognize the factors underpinning their performance. Accrued liabilities are one of the factors that hinder the profitability of banks. There are several methods to assess banks' profitability with their own pros and cons. Among them, data envelopment analysis (DEA) has been recommended as one of the most common approaches to evaluate different efficiencies including cost efficiency, revenue efficiency, technical efficiency, and finally profitability. The availability of prices/weights of inputs and outputs provides financial managers with significant information for evaluating efficiencies and assists them in decision-making and strategy development processes. This study mainly aims to analyze banks' profitability by considering accrued liabilities resulting from undesirable factors, for which relevant data were collected from 33 branches of a commercial bank in Gilan province, Iran based on managerial and weak disposability. The results illustrated that only three branches were graded one in three dimensions of efficiency, namely technical, cost and revenue, and profitability. Besides, it was suggested that the lack of these efficiencies was not correlated with the branches' profitability.