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The purpose of this paper is to provide a framework for evaluating the overall performance of bank branches in terms of profitability efficiency and effectiveness.

Applying a two‐stage DEA model to a sample of bank branches of a large commercial bank in Greece this study disaggregates overall performance into profitability efficiency and effectiveness.

The results indicate that superior insights can be obtained by employing the proposed two‐stage DEA model compared to the outcomes from the analysis based on selected key performance indicators (KPIs). Some relations between profitability efficiency and effectiveness are also investigated.

The study highlights the importance of encouraging increased profitability and efficiency throughout the branch network of the commercial bank under study.

Purpose: The present study investigates how the performance of Greek bank branching varies when the external environment causes dramatic changes that are reflected in recession and capital control effects.

Design/Methodology: A unique dataset of accounting Profit and Loss statements of retail branches of a systemic Greek commercial bank, closely supervised by the European Central Bank (ECB), is utilized. A profit bootstrap Data Envelopment Analysis (DEA) model is selected to measure the bank branch efficiency. The derived efficiency estimates are analyzed through a second-stage panel data regression analysis against a set of efficiency drivers related to branch profitability, diversification of income, branch size, and branch activity.

Findings: The results indicate that recession negatively affects branch efficiency in the short and long run. The occurrence of recession significantly intensifies the efficiency premium of branch profitability, reduces the efficiency premium of diversification of income (i.e., a negative efficiency effect is recorded during the early recession period), while mitigating the generally negative efficiency effect of branch size. The analysis of efficiency effects from the deep recession period that encompasses capital controls reveals the importance of diversification of income for the improvement of profit efficiency at bank branch level.

Originality/Value: This is the first branch banking study that explores branch efficiency alteration and the dynamic of branch efficiency drivers when the economy suddenly enters recession and afterwards when conditions are becoming extremely difficult and consequently capital controls are imposed on the economy.

The purpose of this research is to examine whether a relation between employees’ profile and bank branch profitability holds in the Greek banking sector. Employees’ profile may include education, training, work experience, age and place of origin/living. In addition, it is examined whether high employee performance is related to profitable bank branches.

The case of a Greek cooperative bank is selected with a network of 49 branches and a sample of 258 bank branch employees. Secondary data are collected from the bank’s human resources department database and electronic archives in reference to the year 2011. The methodology used in the research includes descriptive analysis, discriminant analysis and binominal logistic regression analysis.

There are specific employees’ profile features relating to efficient performance that affect bank branch profitability. The findings highlight the importance of recruiting in accordance to a bank’s skills requirements and the significant role of alternative training programs, motivation and performance evaluation systems in augmenting a bank’s overall profitability.

This research is the first attempt to combine and connect particular employee characteristics with efficient performance. It is also the first time that this particular bank, sample and data are examined and analyzed to serve the purpose of this research.

The paper aims to explore the relationship between customer satisfaction and branch profitability within the UK retail‐banking sector.

A survey is conducted within one UK bank, providing access to national customer survey data, and access to branch managers and branch performance data.

The findings provide further evidence to debunk the myth perpetuated in the literature of the 1990s, that customer satisfaction has a positive impact on corporate profitability. The findings, though remarkably consistent, are based on a relatively small sample of bank branches over a relatively narrow time frame, and consequently may not necessarily be applicable to other banking groups, or other countries.

The findings have important practical implications for bank expenditures on customer satisfaction and loyalty programmes, since they suggest that current levels of investment may not be justified by the benefits accruing.

The paper provides further evidence of the absence of an important supposed relationship, in an area of the literature subject to contentious and conflicting research findings.

The purpose of this study is to examine the operating efficiency of a set of 171 retail orientation bank branches of a large commercial bank in Greece, offering relatively homogenous products in a multimarket business environment.

For the measurement of the indices of efficiency the internationally known method of data envelopment analysis (DEA) was used. Two semi‐parametrical statistical tests and one additional Kolmogorov–Smirnov test (non‐parametric) were conducted to choose the appropriate DEA model for the analysis. Using regression analysis, the paper also seeks to examine the effects of selected branch characteristics (profitability, size, market power) and location to variations on operating efficiency.

The results indicate the scope for substantial efficiency improvements. It is also observed that, within the branch characteristics variable, more profitable and larger branches have higher operating efficiency. Finally, holding profitability and branch size constant the analysis showed that rural branches tend on average to be more efficient than urban branches.

The paper examines the operating efficiency of bank branches of a large commercial bank in Greece.

Preface The functions of business divide into several areas and the general focus of this book is on one of the most important although least understood of these—DISTRIBUTION. The particular focus is on reviewing current practice in distribution costing and on attempting to push the frontiers back a little by suggesting some new approaches to overcome previously defined shortcomings.

This work analyzes the effect that service company employee behavior has on customer perceptions of the quality of services received, and the consequent company performance. Organizational citizenship behavior has been recognized as relevant behavior of some employees, but its role regarding customer perceptions and company profitability remains unexplored. Beginning with a brief review of the conceptual background of organizational citizenship behavior, service quality, and its consequences, this paper proposes a model to test these relationships empirically. Some helpful recommendations for managing service companies are presented.

Although it was predicted that bank branches would quickly become obsolete in a computerized society, the reality is that many full‐service branches are not closing but rather evolving to meet changing needs. The role of the branch manager is crucial, and is also changing. In particular, managers are expected to take a lead in marketing activities. A questionnaire study was carried out to examine managers’ changing roles, using two samples of branch managers, one from Canada and one from Spain. Managers were asked to rate 21 function variables on their importance in bank management and in facing new market trends. Differences were found between the two samples, as were similarities: both identified managerial ability, strategic autonomy of the branch and business development through increased marketing ability, as important building blocks for the future role of branches and their managers.

The purpose of the research presented in this paper is to provide a new approach related to the definition of variables in disaggregating branch expenses and income for evaluating the overall technical efficiency of bank branches by means of data envelopment analysis (DEA).

By applying an input minimization DEA model to a sample of bank branches of a large commercial bank in Greece, this study identifies pure technical and scale inefficiencies, efficiency and size relationship and returns to scale patterns. Moreover, it explores target setting strategies for inefficient branches.

Results indicate that branch size has an important influence on efficiency and that superior insights can be obtained by pure technical efficiency (PTE) and scale efficiency (SE), as constituent components of global technical efficiency (TE) than the information obtained from the analysis based on selected key performance indicators (KPIs) used by the bank under study.

A direction of future research would be to extend the analysis to incorporate environmental factors, such as branch location, local competitive environment, investment portfolio risk, among others, into the DEA assessment.

The study shows that DEA which provides an overall summary measure with respect to global TE and its constituent components PTE and SE can be used to complement the in‐house performance management system of the bank under study for the evaluation of its branch network.

From a policy perspective, this study highlights the use of DEA combined with statistical analysis to support the reduction of burden by means of either expense reduction or revenue enhancement.

In today′s world businesses function in a marketing environment. The banking industry is no exception. However, the changing world situation always requires bankers to reassess their strategies in order to stay competitive. As part of the banking establishment, bank branch managers play a very important role. This article examines the new roles and functions of bank branch managers through their own experiences in this ever‐changing marketing environment. The research results shed some new light on how to successfully manage these full‐service branch offices in today′s marketing era.