Hasan Tutar

Department of Public Relations, BoluAbant Izzet Baysal University, Bolu/Türkiye;

Azerbaijan State University of Economics (UNEC),

Baku/Azerbaijan

hasantutar@ibu.edu.tr

ORCID 0000-0001-8383-1464

Analysis of financial performance of deposit banks in Turkey using multi-criteria decision-making methods

Yusuf Bahadır Kavas

Department of Office Services and Secretarial,

Amasya University,

Türkiye

yusuf.kavas@amasya.edu.tr 

ORCID 0000-0002-4838-7318

Batuhan Medetoğlu

Department of Finance, Banking and Insurance,

Burdur Mehmet Akif Ersoy University,

Türkiye

bmedetoglu@mehmetakif.edu.tr 

ORCID 0000-0002-8400-1232

Judit Koltai

Faculty of Economics, Széchenyi István University,

Gyor, Hungary

koltai.judit@sze.hu

ORCID 0000-0003-3817-3030

Abstract. Financial performance analysis in the banking sector aims to determine the capacity for data-driven decision making. This study evaluates the financial performance of public and private deposit banks in Türkiye. In the study, we used the entropy method to determine performance weights. Then, we used the VIKOR technique, which integrates the entropy method with multi-criteria decision making. This integrated approach evaluates banks according to key dimensions such as profitability, liquidity, asset quality, and capital adequacy. We conducted the study on a sample of three public and eight private deposit banks operating in Türkiye. The data covers financial ratios starting from 2022. The findings show that two public banks have high financial performance, while publicly owned deposit banks have stronger financial performance than their privately owned counterparts. The findings provide valuable insights into the Turkish banking sector's financial stability and competitive positioning. The results of the study can guide bank managers and regulatory authorities.

Received: March, 2024

1st Revision: February, 2025

Accepted: March, 2025

DOI: 10.14254/2071-8330.2025/18-1/12

JEL Classification: C13, G17, G21

Keywords: financial performance, MCDM, Deposit Bank, entropy, VIKOR method