les cahiers du mecas
Volume 22, Numéro 1, Pages 133-141
2026-06-02

The Impact Of Loans On The Profitability Of Algerian Banks Case Study Of The Algerian External Bank

Authors : Boustila Ibrahim . Benchiha Kada Hichem .

Abstract

Through this research paper, we aim to find out the extent of the impact of loans on the profitability of the Algerian external bank as well as the relationship that combines both of them, as lending operations are considered the most important financial operations for the return achieved through financing operations directed to various exploitation activities in addition to financing investment projects, where exploitative loans are generally related to the movements of the institution's own fund, which is once a debtor and a creditor, depending on the frequency of activity in institutions, and the study found that there is a relationship between loans and profitability, that is, if the bank does not mean This may even indicate an improvement in the efficiency of loan management, perhaps through better interest rates, cost control, or the provision of higher quality loans.

Keywords

loans ; profitability ; commercial banks ; algerian external bank