Evaluating the Operational Efficiency of Jordan Islamic Bank and Housing Bank -for Trade and Finance Using the ROE model

الملخص

This study aims to evaluate the operational efficiency of both Jordan Islamic Bank and Housing Bank for Trade and Finance using the Return on Equity (ROE) model during the period from 2021 to 2023. The study applied a set of financial analytical tools to assess financial performance, including Return on Assets (ROA), Asset Utilization (AU), Equity Multiplier (EM), and Profit Margin (PM). The findings revealed that Jordan Islamic Bank showed significant improvement in ROE in 2022 before experiencing a slight decline in 2023, while Housing Bank maintained positive stability throughout the period. In terms of Asset Utilization, Jordan Islamic Bank demonstrated gradual improvement, while Housing Bank experienced fluctuations. Regarding Financial Leverage, Jordan Islamic Bank showed a noticeable increase in debt reliance, raising its risk exposure, while Housing Bank maintained financial stability. The study recommends that Jordan Islamic Bank reassess its asset management strategies, while Housing Bank is advised to enhance its growth strategies to maintain financial stability.