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      

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

Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah Di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 1
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Collection Method ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This type of research is quantitative. The data collection method used is the documentation method and library study method. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence to ROA. Means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

scholarly journals ISLAMIC CORPORATE IDENTITY IN THE PRACTICE OF ANNUAL REPORT DISCLOSURE ISLAMIC BANK

2012 ◽  
Vol 1 (1) ◽  
pp. 34
Author(s):  
Ratih Paramitasari
Keyword(s):  
National Economy ◽  
Annual Report ◽  
Banking System ◽  
Corporate Identity ◽  
Annual Reports ◽  
Islamic Banking ◽  
Reporting Standards ◽  
Islamic Banks ◽  
Islamic Financial Institutions ◽  
The Ideal

<span>The development of Islamic banking is directed to provide great benefit to society and contribute optimally to the national economy. Islamic banking system and conventional banking system together synergistically supports the mobilization of public funds broadly improve the ability of finance to sectors of national economy. Together with the development of Islamic banking industry in Indonesia, there are many controversies from the community, where most problems highlighted are sticking the label of syariah in Islamic financial institutions are still considered not feasible. Based to these problems, researchers want to conduct this research on the suitability of the annual report disclosure practices of Islamic banks in Indonesia to the reporting standards that reflect the ideal of Islamic Corporate Identity.This study using a checklist for the data analysis consisting of the five themes and the eight dimensions that are should be disclosed in annual reports of Islamic banks. From the results of the assessment aspect of the checklist is then poured in the index EII (ethical identity index). From the calculation of EII, it can be seen that the annual report disclosure practices syariah banks for 2007, 2008, and 2009, has approached the ideal reporting standards that reflect the Islamic Corporate Identity.</span>

scholarly journals Pengaruh Islamic Social Reporting terhadap Profitabilitas (Return on Asset dan Return on Equity) Pada Bank Umum Syariah di Indonesia

2019 ◽  
Vol 4 (2) ◽  
pp. 119
Author(s):  
Ana Santika
Keyword(s):  
Corporate Governance ◽  
Data Collection ◽  
Commercial Banks ◽  
Sampling Technique ◽  
Social Reporting ◽  
Annual Reports ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Return On Equity ◽  
Social Environmental

The act of accuracy and prudence is very important in the company because is the factor that determines the sustainability of companies such as banking. This study aims to analyze the effect of Shariah Complaints towards the profitability of Islamic Banks in Indonesia. This research is quantitative using documentation method and library study in data collection. The sampling technique uses purposive sampling with the criteria of Islamic commercial banks that publish annual-reports from 2013 to 2017 from 13 Islamic commercial banks (BUS) in Indonesia. The results of this study show that the Funding and Investment, Products and Services, Employees, Community or Social, Environmental, Corporate Governance simultaneously does not have influence significantly the ROE variable, but it does significantly influence ROA. This means that the wider the Islamic social reporting of Islamic banking, the greater the profitability of Islamic banking. In addition, high profitability will encourage managers to provide more detailed information, because they want to convince investors of company profits and its compensation for management.

scholarly journals The Analysis of the Turkish Islamic Banking System Between 2005 and 2014

2016 ◽  
Author(s):  
Lívia Tálos ◽  
Gyöngyi Bánkuti ◽  
Jozsef Varga
Keyword(s):  
High Risk ◽  
Economic Crisis ◽  
Islamic Law ◽  
Banking System ◽  
Rating System ◽  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Conventional Banks

Islamic banking is a banking system that is based on the principles of sharia or Islamic law. The principles of Islamic finance forbid interest - this is commonly known as riba - charity (zakat), forbid high risk (gharar), forbid some transactions like gambling, and are based on PLS (Profit-Loss Share). The most important concept is that both charging and receiving interest are strictly forbidden; money may not generate profits. Islamic banks have largely survived the global economic crisis intact and they offer a safer operation than conventional banks. CAMEL analysis is a supervisory rating system to classify a bank's overall condition according to Capital (C), Assets (A), Management (M), Earnings (E) and Liquidity (L). In the analysis a variety of indicators were calculated based on data from the annual reports. The results of the four banks were averaged separately, then classified (1 = good, 2 = adequate, 3 = satisfactory, 4 = acceptable, 5 = unacceptable) according to the desired criteria, the changes over the years and the relative values of the four banks.

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 Embedding Value-Based Principles in the Culture of Islamic Banks to Enhance Their Sustainability, Resilience, and Social Impact

2022 ◽  
Vol 14 (2) ◽  
pp. 916
Author(s):  
Evren Tok ◽  
Abdurahman Jemal Yesuf
Keyword(s):  
Social Impact ◽  
Empirical Studies ◽  
Banking System ◽  
Annual Reports ◽  
Islamic Finance ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Real Economy ◽  
Conventional Banks ◽  
Asset Quality

Value-based banks strive to build a self-sustaining banking model with inclusive and transparent governance that is sustainable and resilient to external disturbances. Initiatives for value-based intermediation in Islamic finance started in Malaysia. The growth in VBIBs is accompanied by claims about its relative resilience to crisis and efficiency compared to VBBs and conventional banks. However, little empirical evidence is available to support such claims. This study aims to analyze the resilience and efficiency of VBIBs compared to the VBBs and GSIBs. It highlights the role of value-based strategy in developing a sound and resilient Islamic banking system to overcome future crises and further strengthen the impacts of Islamic banks. The study used quantitative and content analysis research methods, with data collected from the annual reports of 10 VBIBs from 2017 to 2020. The empirical results show that VBIBs have better risk-adjusted capital levels and asset quality, enabling them to be more resilient during crises. They provide more satisfactory returns compared to the VBBs and GSIBs. However, VBBs have a better asset structure and growth rate, which contributes to the real economy. The overall findings suggest that adopting value-based strategies in Islamic banking improve banks’ sustainability, resilience, and social impacts by concentrating resources on value-based activities that provide economic resiliency and enhance inclusive and sustainable economic growth. The study fills gaps in the current Islamic finance literature concerning empirical studies on value-based Islamic banking. It also helps practitioners to understand the relative efficiency, resilience, and social impact of VBIBs.

scholarly journals COMPARING THE RETURN ON MUDHARABAH DEPOSIT AND THE RETURN ON EQUITY: ASSESSING THE FAIRNESS IN INDONESIAN ISLAMIC BANKING INDUSTRY

2021 ◽  
Vol 1 (1) ◽  
pp. 1-20
Author(s):  
Nurul Fadhilah ◽  
Achmad Tohirin
Keyword(s):  
Total Asset ◽  
Islamic Banking ◽  
Panel Regression ◽  
Islamic Banks ◽  
Return On Equity ◽  
Financial Report ◽  
Economic Framework ◽  
Need To Evaluate ◽  
Banking Business ◽  
Islamic Economic

Abstract This paper compared the return on mudharabah deposit (ROMD) and the return on equity (ROE) in Indonesian Islamic banks to unveil the differences and factors that affect them. The purpose of this paper is to evaluate the profit and loss sharing mechanism in Islamic banking through the return on mudharabah deposit and on equity. The quarterly financial report from 10 Islamic banks within the period of 2011 to 2016 are processed using independent t-test to compare means and panel regression method to disclose the variables affecting the behavior of ROMD and ROE. The results show that the ROMD and ROE are statistically different, with ROMD tend to be lesser than ROE. It also found that ROA, total equity/total asset, total total deposit/total asset, total financing/total asset, bank size and total of mudharabah deposit accounts are affect the variability of ROMD, and the same variables,exclude the mudharabah deposit account, affect the ROE. Following this result, Islamic banks in Indonesia need to evaluate the governance to treat the mudharabah contract as a mode of equity participation in nature, as like as the contract with the shareholders, in order to comply with Islamic economic framework through the presence of the fairness in banking business.

Gauging Profitability and Liquidity of Islamic Banks: Evidence from Malaysia and Pakistan

2015 ◽  
Vol 1 (1) ◽  
pp. 75
Author(s):  
Muhammad Asif Khan ◽  
Majid Ali ◽  
Muhammad Atif Khan
Keyword(s):  
Annual Reports ◽  
Portfolio Investment ◽  
Islamic Banks ◽  
Analysis Model ◽  
Investment Portfolio ◽  
Current Ratio ◽  
Asset Return ◽  
Return On Equity ◽  
Earnings Per Share ◽  
Significant Difference

This study aims at evaluating and comparatively analysing the financial performance of all full-fledged Islamic banks operating in Pakistan and five Islamic banks from Malaysia conveniently chosen, subject to profitability and liquidity. Data has been compiled from annual reports for 2006-11. Famous ratios analysis model has been applied with descriptive and inferential statistics to analyse the results. Empirical results revealed that Malaysian Islamic banks are more profitable, liquid and well ahead to Pakistani Islamic banks in profit margin, profit to expense, earnings per share, cash ratio and loan to deposit ratio. However no significant difference is observed in return on asset, return on equity, current ratio, cash & portfolio investment to deposit and loan to asset ratio, although Malaysian Islamic banks are superior in maintaining healthy investment portfolio and high cash ratio while Pakistani Islamic banks have maintained high loan to deposits.

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.

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