Measuring the performance of Islamic banks in the Kingdom of Saudi Arabia, using financial and profitability analysis indicators

Abstract

This study aims to compare the performance of Islamic banks in the Kingdom of Saudi Arabia through financial analysis indicators. Five indicators were tested: net income from financing and investments, net commission income, operating and administrative expenses, provisions for financing losses, net income. During the study period, these banks were tested by profitability indicators and according to the four indicators, these banks varied in the results of this index. The study demonstrated the importance of evaluating the performance of Islamic banks in the Kingdom of Saudi Arabia, and that this evaluation gives a good opportunity for bank management to focus on strengths and avoid weaknesses in a competitive environment in which Islamic banks compete to provide the best performance