Assessment of islamic banks profitability ratios-evidence from jordan

Author: 
Anan Fathi Srouji, Mohd Suberi Ab Halim, Zulkarnain Lubis and Madher Ebrahim Hamdallah

This study aimed to identify and compare the financial performance of all full-fledged Islamic banks operating in Jordan, in relation to profitability. Data has been retrieved from the financial annual reports for 2011 and 2014. As 2011 was the first full year of two Islamic banks, namely, Jordan Dubai Islamic banks, and Al-Rajhi Islamic Bank. Illustrious profitability ratios analysis had been applied with descriptive and inferential statistics for analyzing the results. Empirical results revealed that Jordanian Islamic banks in the year 2014 were more profitable than the year 2011, except for Islamic International Arab Bank, but with no significant relationship between the means for the relative years in relation to return on assets, return on equity, and profit margin. On behalf of the deviation and coefficient of variance as consistency values also proved that the year 2014 was more consistent than the year 2011, as its values were higher for the year 2011, except for the ROA ratio.

Paper No: 
415