A Comparison of Financial Performance of Saudi Banks (2007-2011)
Journal Article
نوع عمل المنشور:
بحث علمي
رابط المنشور على الويب:
المجلة \ الصحيفة:
Asian Journal of Research in Banking and Finance Vol. 4, No. 2, February 2014, pp 200-213 ISSN 2249-7323
مستخلص المنشور:
Abstract
The purpose of this study is to analyze and compare the performance of Saudi banks that listed in stocks market for the period 2007-2011. It is evaluatory in nature, drawing sources of information from secondary data. The financial performance of banks is studied on the basis of financial ratios and variables. Financial performance was measured by two approaches; trend analysis and inter-firm analysis. It was found that increasing of assets, operating expenses, and cost to income cause a decrease in Saudi bank’s profitability, while increasing of operating income causes an increase in the profitability of Saudi Banks. Analysis show that all the variables of study have a positive mean value and all banks are generating income. Saudi joint venture banks proved to be more proficient in generating profits, absorbing loan losses and dominating in ROE, while, Saudi established banks have more capacity of absorbing asset losses and dominating in ROA.
Keywords: Return On Assets (ROA), Profitability Ratios, Efficiency Ratios, Credit Risk, Liquidity Ratios.