Results of discriminant analysis indicate higher classification precision when bank profitability is set
out through its existence and absence. Usual conclusions on determinants of bank profitability found
in empirical literature have been reached. A reduction in the number of significant predictor variables
is noted for a more developed banking sector – year 2008 in comparison to 2003. General
recommendations for more profitable business of banking are: rationalization of non-interest costs,
expansion of bank assets and increase of non-interest revenues by exploiting financial products
economies of scale and scope. Banks with higher market share can have additional comparative
advantages, but this could be proved only indirectly through other aspects of doing business.