Both regressions are statistically significant at 1 percent
level before and after controlling for external variables. In both ROA-based and
NIM-based models, we observe slight differences in the value of coefficient and
significance but not in the sign (direction) of the relationship. The explanatory power of
the model (R 2) increases from 38 to 49 percent and from 17 to 23 percent in each model
when the external factors are considered. Overall, the ROA-based model (Model 1) has
more explanatory power