scholarly journals Comparative study of Profitability and Liquidity analysis of Islamic Banks in Bangladesh

2013 ◽  
Vol 2 (1) ◽  
pp. 29-46
Author(s):  
Nazneen Fatema ◽  
Abdullah Mohammed Ibrahim
Keyword(s):  
Confidence Level ◽  
Jel Classification ◽  
Islamic Banks ◽  
Islamic Philosophy ◽  
Return On Assets ◽  
Return On Equity ◽  
Classification Code ◽  
Muslim Countries ◽  
Liquidity Gap ◽  
Profitability Ratios

In this depressed world financial scenario, Islamic banking has emerged as a strong alternate financial system. Its growth is not restricted to the Muslim societies but Islamic financial products are also gaining popularity among non-Muslim countries. The objective of this paper is to scrutinize and compare the liquidity and profitability performances of five Islamic banks in Bangladesh in between the period 2005 and 2011. In order to scan the performances, this study highlights on different standards of liquidity and profitability measurements logical to Islamic philosophy; such as liquidity and profitability ratios, liquidity reserves by the banks, net liquidity gap, profit creation from different sectors of the banks, etc. Multiple correlations among liquidity and profitability ratios are shown here. The results of all these measurements are quite apparent. In particular, among all the independent variables, at 90% confidence level only investment to total assets is found to be significantly affecting Return on Assets (a measurement of profitability ratio) for Islami Bank Bangladesh Ltd., Shahjalal Islami Bank Ltd. and EXIM Bank Ltd., whereas with Return on Equity for only Shahjalal Islami Bank Ltd. However, multicollinearity has been found to be a great issue when considering liquidity impact on profitability for Islami Bank Bangladesh Ltd., EXIM Bank Ltd. and Social Islami Bank Ltd. Overall P-values suggest that at 95% confidence level liquidity model proves significant on ROA for Islami Bank Bangladesh Ltd. and Social Islami Bank Ltd., while on ROE for Islami Bank Bangladesh Ltd. and Shahjalal Islami Bank Ltd. JEL Classification Code: G21; G30; M20

scholarly journals Key Ratios Analysis between Conventional and Islamic Banking in Bangladesh

2016 ◽  
Vol 5 (2) ◽  
pp. 77-84
Author(s):  
Ayesha Siddiqua ◽  
A. N. M. Minhajul Haque Chowdhury ◽  
Md. Jahangir Alam Siddikee ◽  
Abu Sayed Md. Mahmudul Haque Chowdhury ◽  
Shahnaz Parvin
Keyword(s):  
National Economy ◽  
Banking Sector ◽  
Jel Classification ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Equity ◽  
Classification Code ◽  
G 21 ◽  
Return On Capital ◽  
Conventional Banks

The proliferation of banking sector is an indicator of economic growth in Bangladesh. Conventional Banks as well as the Islamic Banks significantly influence the national economy although there are a number of dissimilarities between the two banking systems. This study was carried out to identify the differences of Conventional and Islamic Banking sectors in terms of ratio analysis. A total of 10 banks in which 5 Conventional and 5 Islamic banks were selected for the study. Some key financial ratios were being used for the analysis. It is found from the study that the Conventional and Islamic Banks had much influence on the national economy as they hold the deposit of general public and invest the funds in profitable projects. The earnings per share (EPS), return on asset (ROA), return on equity (ROE) and return on capital employed (ROCE) were greater in Islamic Banks. It clearly indicates that the Islamic Banks were more profitable and performing a good job in the context of Bangladesh although people preferred Conventional Banking most. JEL Classification Code: G 21

scholarly journals Examining the Performance of Islamic Banks in the Context of Bangladesh

2017 ◽  
Vol 6 (2) ◽  
pp. 85-92
Author(s):  
Ayesha Siddiqua
Keyword(s):  
Banking System ◽  
Jel Classification ◽  
Total Asset ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Equity ◽  
Classification Code ◽  
Earnings Per Share ◽  
G 21

As a unique banking system Islamic Banking gained popularity all over the world. In 1983 Bangladesh also came forward with Islamic banking. This study focused on the performance of six selected Islamic banks in Bangladesh during 2011-2015. Researchers collected data from the annual reports of the Banks. Variables such as investment, total asset, deposit, earnings per share (EPS), return on asset (ROA) and return on equity (ROE) were selected for the study. In this study the main tools were growth and trend analysis. This empirical investigation revealed that the growth of total asset, deposit and investment was up to the mark but the Banks were not able to increase the growth rate of EPS, ROA and ROE. The result also showed that Islamic banks are doing good job in Bangladesh although the Banks are operating according to the conventional banking framework. JEL Classification Code: G 21      

The performance of Islamic banking among the commercial banks in Malaysia

2008 ◽  
Vol 5 (1) ◽  
pp. 59
Author(s):  
Samsuwatd Zuha Mohd Abbas ◽  
Norli Ali ◽  
Aminah Mohd Abbas
Keyword(s):  
Commercial Banks ◽  
Positive Impact ◽  
Bank Performance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Accounting Performance ◽  
Significant Difference ◽  
The Mean

This paper examines the accounting performance of the Islamic banking among (??) commercial banks in Malaysia. A total of 18 commercial banks which include 4 Islamic banks are selected as samples covering the period of 2000 - 2006. Accounting performance is measured by the return on assets (ROA) and return on equity (ROE). The objective of the study is (1) to determine whether Islamic banking performance is at par with the conventional banking and (2) to investigate whether the type (Islamic or conventional bank) and age of bank influence the performance. Result of the independence t-test of the study shows that there is no significant difference in the performance of the Islamic and the conventional banking in Malaysia although the mean score for conventional banking is higher. The regression results show that the age of banks has a positive impact on the bank performance where as none of the types of banks influence performance.

scholarly journals Analysis of the determinants of bank liquidity risk: The case of Islamic banks in the UAE

2021 ◽  
Vol 119 ◽  
pp. 01008
Author(s):  
Khadija Ichrak Addou ◽  
Afaf Bensghir
Keyword(s):  
Liquidity Risk ◽  
Multiple Linear Regression Model ◽  
Capital Adequacy ◽  
Annual Data ◽  
Islamic Banks ◽  
Mena Region ◽  
Return On Assets ◽  
Return On Equity ◽  
Risk Determinants ◽  
The Impact

This article aims to examine the principal parameters that impact the liquidity risk incurred by Islamic banks in the UAE. The study examines annual data from four Islamic banks in the UAE. The Data is extracted from their annual activity reports and financial results. A multiple linear regression model is used to assess the impact of six bank-specific variables (Return on Equity, return on assets, size of the bank, liquidity gaps, non-performing loans and capital adequacy ratio) on the liquidity risk of UAE Islamic banks. The designed model shows that ROA and NPL negatively impact the liquidity risk of the studied banks, while the other determinants, namely size, ROE, liquidity gaps and CAR contribute to the improvement of liquidity of UAE banks. Thus, our empirical results complement the existing studies related to the analysis of liquidity risk determinants incurred by Islamic banks operating in the MENA region, especially Emirati banks.

scholarly journals Analisis Laporan Keuangan Sebagai Alat untuk Menilai Kinerja Keuangan Perusahaan pada PT Multi Bintang Indonesia Tbk

2020 ◽  
Vol 9 (2) ◽  
pp. 83-95
Author(s):  
Yulida Army Nurcahya ◽  
Rizky Puspita Dewi
Keyword(s):  
Financial Performance ◽  
Good Condition ◽  
Return On Assets ◽  
Return On Equity ◽  
Financial Condition ◽  
Total Debt ◽  
Equity Ratio ◽  
Analytical Tools ◽  
Solvency Ratio ◽  
Profitability Ratios

This study aims to analyze the financial performance of PT. Multi Bintang Indonesia Tbk in 2016, 2017 and 2018. The analytical tools used in this study are liquidity ratios (current ratios and fast ratios), solvency ratios (ratio of total debt to assets and total debt to equity) ratios), and profitability ratios (return on investment and return on equity). The results of the current ratio and quick ratio research in 2017 show that the company's financial condition is quite good, because the debt is less than the assets and profits obtained. Whereas in 2016 and 2018, the company's financial condition was not good because of higher debt. The quick ratio in 2016 shows that the company's financial condition is not good. Based on the measurement of the solvency ratio, an increase in the total debt to asset ratio and the total debt equity ratio in 2016 and 2018 indicate that the financial condition is not in good condition. Judging from the profitability ratio, the decrease in return on assets and return on equity in 2016 and 2018 shows that the company's financial performance is not good because the ratios are not maximized in generating profits.

scholarly journals PERBANDINGAN TINGKAT PROFITABILITAS DAN LIKUIDITAS DARI ASSET-LIABILITIES MANAGEMENT PADA BANK SYARIAH DAN BANK KONVENSIONAL

2016 ◽  
Vol 5 (1) ◽  
pp. 1
Author(s):  
Rindang Nuri Isnaini Nugrohowati
Keyword(s):  
Banking Sector ◽  
Banking System ◽  
Capital Adequacy ◽  
Islamic Banks ◽  
Return On Assets ◽  
Return On Equity ◽  
Liability Management ◽  
Capital Adequacy Ratio ◽  
Conventional Banks ◽  
Important Position

Abstract The banking sector has a very important position for the economic systemof a country. The banking system, which is part of the financial system willaffect the course of the economic system as a whole. If the banking system isweak then the system will also be weak economy. Banking is an intermediaryinstitution is the institution that channel funds from surplus funds (surplusunits) to the sectors that lack of funds (defi cit units). With the banking economic actors in need of funds can be met so that the economy can continue to run. In this study will specifi cally analyze the comparison of the level of profi tability of the asset-liability management in Islamic banks and conventional banks are seen from the return on assets and return on equity rises. It also will be studied comparative level of liquidity in Islamic banks and conventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio. By Hyphothesis is as follows : Ha1: there are differences in the level of profitability of the asset-liabilitymanagement in Islamic banks and conventional banks are seen from the return on assets and return on equity Ha2: there are differences in the level of liquidity in Islamic banks andconventional banks are seen from the loan to deposit ratio and Capital Adequacy Ratio Data analysis has been done obtained the following conclusions, based onmeans testing compare with test Independent-Samples t-test showed that the level of tability seen from ROA and ROE between Islamic Bank and Bank Konvensiona show any signifi cant difference. This is demonstrated by tests of signifi cance 0.02 0.05 for FDR, while for the signifi cance test CAR of 0.38> 0.05. Keyword: Profi tabilitas, Likuiditas, Asset Liabilities Management, Bank Syariah

scholarly journals ANALISIS PENGARUH RASIO PROFITABILITAS TERHADAP HARGA SAHAM PERUSAHAAN YANG TERCANTUM DALAM INDEKS LQ45

2020 ◽  
Vol 5 (2) ◽  
pp. 218
Author(s):  
Haidar Abdullah ◽  
Salamatun Asakdiyah
Keyword(s):  
Stock Price ◽  
Stock Exchange ◽  
Secondary Data ◽  
Total Sample ◽  
Profit Margin ◽  
Coefficient Of Determination ◽  
Return On Assets ◽  
Return On Equity ◽  
Net Profit ◽  
Profitability Ratios

This study aimed to examine the effect of profitability ratio on stock price of companies  listed  in  LQ45  index  in  Indonesia  Stock  Exchange  (BEI).  Profitability ratios here in include Net Profit Margin (NPM), Return on Assets (ROA), Return on Equity (ROE),  and Eearning Per Share  (EPS). This study  was conducted to assess the financial performance of the company to generate earnings from an investment.This study uses secondary data. The population in this study is the companies included in the LQ45 index from  2010-2013 amounting to 78. The total sample is 16 companies  belonging  to  and  representing  several  sectors  including  the  financial sector companies, automotive, property, plantation, infrastructure, mining, industrial cement, as well as the consumer goods  industry are consistently incorporated in the four observation period 2010-2013 in LQ45 index that has been determined through purposive  sampling  method.  Method  of  hypothesis  testing  using  Classical Assumption  Test,  Regression,  t  test,  F  test,  and  the  coefficient  of  determination  by alpha (α) of 5%.Regression analysis showed that in partial Net Profit Margin (NPM), Return on Assets (ROA) and Return On Equity (ROE) significantly influence the stock price while the variable Eearning Per Share (EPS) has no significant effect on stock price. Simultaneously  all  variables  Net  Profit  Margin  (NPM),  Return  on  Assets  (ROA), Return on Equity (ROE), and Eearning Per Share (EPS) have a significant effect on stock price. The value of coefficient of determination (R2) of  0.899, which means that the independent variable Net Profit Margin (NPM), Return on Assets (ROA), Return on Equity (ROE), and Eearning Per Share (EPS) is able to explain the variation of the dependent variable stock price by 89,9%, while the remaining 10.1 % is explained by other variables outside of the variables used in the study.

scholarly journals ANALISIS PROFITABILITAS BANK UMUM SYARIAH YANG MENGGUNAKAN RASIO RETURN ON ASSET (ROA) DAN RETURN ON EQUITY (ROE)

2019 ◽  
Vol 3 (2) ◽  
pp. 117
Author(s):  
Muhammad Ash-Shiddiqy
Keyword(s):  
Financial Services ◽  
Secondary Data ◽  
Sampling Technique ◽  
Return On Assets ◽  
Return On Equity ◽  
Bank Deposits ◽  
Before And After ◽  
The Difference ◽  
Profitability Ratios ◽  
Conventional Bank

The purpose of this study is to understand the difference between Islamic banks' profits beforeand after interest restrictions on conventional bank deposits based on Supervision Acts No. SP-28 DKNS /OJK / 9/2014. The policies of Financial Services Authority can be measured into two profitability ratios:(1) return on assets (ROA), and (2) return on equity (ROE). There were 11 SHARIA banks in Indonesiaselected through purposive sampling technique. Secondary data were the quarterly report of the SHARIABank (six quarters), which focuses on the three quarters before and after implementing the policy. Datawere tested using hypothesis testing through paired sample t-tests with a significant level at 5% (α =0.05). The results of this study indicate that the profitability of SHARIA Banks projected by ROA and ROEhas differences before and after the conventional bank deposit interest rate.

scholarly journals The Effect of the Global Financial Crisis on the Profitability of Islamic Banks in UAE

2019 ◽  
Vol 11 (1) ◽  
pp. 181
Author(s):  
Mukdad Ibrahim
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Islamic Banks ◽  
Financial Indicators ◽  
Anova Analysis ◽  
Return On Assets ◽  
Return On Equity ◽  
Adverse Conditions ◽  
Equality Of Means ◽  
The Global Financial Crisis

This paper empirically analyzes the profitability of the four Islamic banks operating in the UAE during the financial period between 2004 and 2009 using three profitability indicators, return on total income, return on assets and return on equity. The researcher uses a variety of techniques, equality of means, coefficient of variation and Anova analysis to assess the effect of the financial crisis on the performance of the four specified banks. The findings show that although the financial crisis began in the 3rd quarter of 2007, its impact on the profitability of Islamic banks was most profound in 2008 and 2009 where there was a notable decline in all analyzed financial indicators. Moreover, the three indicators held a higher variability rate during the crisis years spanning 2008 to 2009 in stark contrast with the pre-crisis rates of the period spanning 2004 to 2007. Anova analysis across the four banks show significant differences between the mean of most indicators, suggesting varying performance under the adverse conditions present during the recession.

ANALISIS HARGA SAHAM PADA PERUSAHAAN REAL ESTATE DAN PROPERTY YANG TERDAFTAR DI BURSA EFEK INDONESIA TAHUN 2017

2020 ◽  
Vol 12 (1) ◽  
pp. 1-10
Author(s):  
Galuh Retno Palupi ◽  
Andreas Suhendi
Keyword(s):  
Real Estate ◽  
Stock Price ◽  
Stock Exchange ◽  
T Test ◽  
Test Results ◽  
Return On Assets ◽  
Return On Equity ◽  
A Value ◽  
Property Companies ◽  
Profitability Ratios

Profitability ratios are ratios to assess a company's ability to find profits. This ratio also provides a measure of the effectiveness of a company's management. This is shown by the profits generated from sales and investment income. Components of profitability ratios used by the author are Return On Assets (ROA), Return On Equity (ROE), and Earning Per Share (EPS). In the case of this study, Real Estate and Property companies listed on the Indonesia Stock Exchange will be the object to be examined by the author. The results showed that Return On Asset (ROA), Return On Equity (ROE), and Earning Per Share (EPS) simultaneously had an effect on the stock price. It is known from the F test results where the value of Fresult is 10.074 and test T where the value of T-Test significance is less than the success rate value with the value t = 0.000 < α 0.05. In addition, it is also known that variables that affect the stock price are Earning Per Share. This is demonstrated by the results of the T-Test partial ROA having a Sig value of 0.659 and ROE has a value of Sig 0.803. The second value of the variable is greater than the probability value (α) 0.05, whereas the EPS variable has a value of Sig 0.000 smaller than the probability value (α) 0.05.

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