Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336216 
Year of Publication: 
2025
Citation: 
[Journal:] Financial Internet Quarterly [ISSN:] 2719-3454 [Volume:] 21 [Issue:] 3 [Year:] 2025 [Pages:] 28-44
Publisher: 
Paradigm Publishing Services, Warsaw
Abstract: 
This study examines the relationship between sustainability and the financial performance of European banks, focusing on their Return on Average Assets (ROAA) and Return on Average Equity (ROAE). Using panel regression analysis on data from 2018 to 2022, the findings reveal a negative correlation between sustainability factors and short-term profitability, suggesting that sustainability-related investments may initially lead to higher costs and lower returns. However, the results also indicate a potential association between sustainability engagement and long-term financial resilience, though the exact causal mechanisms remain subject to further research. The study contributes to the ongoing debate on the financial implications of sustainability in the banking sector and highlights the need for further econometric analysis to assess the long-term effects of sustainable investments.
Subjects: 
ESG Factors
Profitability Analysis
Sustainable Banking
Sustainable Development Goals (SDGs)
JEL: 
G21
Q56
M14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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