BANK PROFITABILITY BEFORE AND DURING THE COVID-19 CRISIS: THE ROLE OF INTELLECTUAL CAPITAL

Abstract

The banking sector, recognized as a knowledge-intensive sector, largely relies on the use of intellectual capital as a key factor for sustainable and profitable growth. The aim of the paper is to determine the contribution of intellectual capital and its components to the profitability of banks in stable and crisis situations, influenced by the COVID-19 pandemic crisis. The sample includes 21 banks that operated in Serbia in the period before the pandemic crisis (2017-2019) and during the crisis (2020-2022). The MVAIC method was applied in the paper to measure the value of intellectual capital and its components. The results of the regression analysis indicate that intellectual capital contributes to profitability both in the period before the crisis and in the period of the crisis. Structural capital had a dominant influence on profitability before the pandemic crisis, while during the crisis period, capital employed efficiency had a decisive influence