| Variables | Explanations |
| SDR | SDR, individual drawing right, is an international reserve asset that serves as the IMF’s unit of account. It is used to measure the value of the currency in terms of the exchange rate. |
| Capital deposits ratio | Capital deposit ratio is the portion of the bank’s capital to the deposit. It is used to measure the profitability of the bank in many reserches. It can be collected from the profitability ratio sheet in the Bloomberg laboratory. |
| ROA | ROA is calculated by dividing the net income over total assets and used to measure the profitability of the bank. It can be collected from the profitability ratio sheet in the Bloomberg laboratory. For the weighted level of the industry, ROA index is used, which is the weighted level, to fix the limited observations. |
| ROE | ROE is also an indicator to measure the profitability of banks and computed by net income over the shareholder’s equity. It can be collected from the profitability ratio sheet in the Bloomberg laboratory. For the weighted level of the industry, ROE index, which is the weighted level, to fix the limited observations. |
| GDP | GDP is the real Gross Domestic Product representing the economic growth of a country. The change in GDP has a closed relationship with banksbank. It can be collected from the United Kingdom Office for National Statistics in Bloomberg Laboratory. |
| Inflation Rate | Inflation rate indicates the purchasing power of a nation’s currency, which is used to measure the rate of changes in the price level. Inflation has an impact on profitability because higher inflation means lower profitability of banks. It is calculated by the CPI collected from the United Kingdom Office for National Statistics in Bloomberg Laboratory. |
| Government Expenditure | Government Expenditure is the devotion or purchases of public consumption, Public investment, and transfer payments. It can influence the performance of the bank. The United Kingdom Office can collect it for Nation. The statistic in Bloomberg Laboratory. |
| Dummy-Brexit | Dummy-Brexit is a dummy variable that only uses the value 0 or 1 to indicate the absence or presence of some categorical effect that may influence the outcome. Here we use 0 to represent 2016 pre-Brexit while 1 represents post-Brexit. The use of the Dummy variable is to measure the impact of Brexit on bank profitability. |