The COVID-19 Pandemic Effect on the Performance of the Islamic Banking Sector in KSA: An Empirical Study of Al Rajhi Bank

Ysa, Almonifi; Rehman, Shakeel Ul; Gulzar, Rafia

doi:10.2139/ssrn.3834859

Cited by 18 publications

(20 citation statements)

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“…The Net Interest Margin (NIM) has no meaningful relationship with the Return on Asset (ROA) (ROA). (Almonifi et al, 2021) examine ten Saudi Al Rajhi Bank ratios during the full five years before and during the COVID-19 pandemic, including EPS, P/E, DPS, DY, ROE, ROA, LA/TA, CTI CAR, and DPR. Using a five-year analysis, they discovered that Al Rajhi Bank did better in 2020 than in 2019, with substantial results in EPS, P/E, DY, and CTI.…”

Section: Scientific Journal For Financial and Commercial Studies And ...mentioning

confidence: 99%

“…From the literature review, different and essential studies have explored the impact of covid-19 on banking sector performance. Either focus on the market performance, commercial and investment banks, professional and scientifical, regional and global banking, different practice and analysis models, and case studies (Almonifi et al, 2021, Barua and Barua, 2021, Demirguc, et al, 2020, Ghosh and Saima, 2020, Marcu, 2021, Rahmi and Sumirat, 2021. Moreover, there is a shortage of studies covering the effect of the Covid-19 pandemic on the Egyptian banking sector.…”

Section: Scientific Journal For Financial and Commercial Studies And ...mentioning

confidence: 99%

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The Effect of Covid-19 Pandemic on Banks' Risk and Performance Indicators; Case of Egypt an Empirical Study

السید¹

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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This paper analyzes the risk and performance indicators for the timing of 9 listed -Banks on the Egyptian Stock Exchange-during the COVID-19 outbreak. The paper examines the amount from the financial year 2019 to 2021 and shows that although most investment banks experienced stress, Egyptian banks have been largely resilient with the great support provided by the Central Bank of Egypt. The results show that the COVID 19 pandemic affects bank risk and performance indicators quarterly and annually. The study results revealed that the COVID-19 pandemic has a significant effect on Banks' risk and performance indicatorswhether it was measured using bank stock price P, bank book value BV, bank return on assets ROA, bank return on equity ROE, bank Capital Adequacy Ratio CAR , and bank Nonperforming Loan NBL. The results also indicated the great role of the Central Bank of Egypt in limiting the impact of COVID-19 on the risk and performance indicators of Egyptian banks.

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Section: Scientific Journal For Financial and Commercial Studies And ...mentioning

confidence: 99%

Section: Scientific Journal For Financial and Commercial Studies And ...mentioning

confidence: 99%

The Effect of Covid-19 Pandemic on Banks' Risk and Performance Indicators; Case of Egypt an Empirical Study

السید¹

2023

المجلة العلمیة للدراسات والبحوث المالیة والتجاریة

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“…Capitalization has a direct impact on a bank's efficiency, as high or low capitalization is an important concern. Capital adequacy ratios, asset quality, return on capital, and other solvency ratios have gradually gained importance during COVID-19 (Almonifi et al, 2021).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The aim of the study by Almonifi et al (2021) is to examine the impact of COVID-19 on the performance of Saudi Arabia's Al Rajhi Bank as an Islamic bank. They used several key metrics such as price-to-earnings ratio, return on invested capital, return on equity, earnings per share, capital adequacy ratio, liquidity ratio, and payout ratio to assess before and during this pandemic.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Covid-19 on the Capital Management (Implementation and Compliance of the Basel-3 Framework) of the Banks in Bangladesh

2022

asfbr

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The global economic condition has faced tremendous pressure due to the arrival of Covid-19. Covid-19 has affected the business and financial system severely and put extra pressure on banks in earnings, expenses, and operating efficiencies. Capital management has been a challenge for the banks in Bangladesh due to higher NPLs ratio, poor governance, and weakness in the quality of assets. The Covid situation has deepened manifold due to regulatory changes, fall in earnings, and asset quality with extra facilities being offered to the borrowers during the crisis period. This paper investigates the impact/s of Covid-19 on capital requirements, capital adequacy ratio, and capital management of banks in Bangladesh. The paper analyzes the effects of Covid-19 on key risk factors of the banking sector i.e. capital requirements and financial stability. The study is based on time series data comprising 62 banks operating in Bangladesh and a total of bank-year observations over the period 2012 to 2021. The empirical output of the paper unveils the degree of changes in capital adequacy of banks in the post-Covid situation. The paper also illustrates the impact of Covid-19 on CAR due to changes in performance indicators represented by different financial ratios- ROA, NIM & ROE which have been affected negatively in the post-Covid situation due to the effects of regulatory changes during the Pandemic. Although Classification status was not changed due to regulatory relaxation, the expenses on provisions and others increased substantially and resulting in a fall in profits and affecting the CAR negatively. The findings also show that there exists interconnectivity between the performance indicators and capital management.

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“…It means that Islamic banks in GCC could survive in the Covid-19 pandemic. However, Islamic banks in GCC countries gain experience and become more efficient and stable over time (Almonifi et al, 2021). found that Al Rajhi Bank as the largest Islamic bank in Saudi Arabia has performed better during 2020 compared to 2019.…”

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confidence: 99%

Financial Performance of Islamic Commercial Banks Before and During the Covid-19 Pandemic in Indonesia

Wastuti

Hasan²

2022

iijse

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The covid-19 pandemic has dropped the economy of the world. Islamic banks as part of the economy are also affected by this pandemic. The study aims to provide an overview of the performance of Islamic Commercial Banks (BUS) in Indonesia before and during the Covid-19 pandemic. The measurement of financial performance will use several financial ratios, namely ROA, CAR, NPF, FDR, BOPO, and NOM. The research sample is all BUS in Indonesia. The years 2018 and 2019 will be used as the period before the Covid-19 pandemic, while 2020 and 2021 will be used as the period during the Covid-19 pandemic. It uses a quantitative method with measurement tools: independent sample t-test and multiple linear regression. The results of the independent sample t-test are the CAR, FDR, and BOPO variables have differences in the period before the pandemic and during the pandemic. While the ROA, NPF, and NOM variables have no difference in the period before and during the pandemic. From the partial multiple linear regression test (t-test), financial ratios in the form of BOPO and NOM influence ROA. While the variables CAR, FDR, and NPF do not affect ROA. On the other hand, simultaneously the variables CAR, NPF, FDR, BOPO, and NOM affect ROA. The research results from this article can be used as a source of information by stakeholders in making policies for a better BUS future.

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The COVID-19 Pandemic Effect on the Performance of the Islamic Banking Sector in KSA: An Empirical Study of Al Rajhi Bank

Cited by 18 publications

References 0 publications

The Effect of Covid-19 Pandemic on Banks' Risk and Performance Indicators; Case of Egypt an Empirical Study

The Effect of Covid-19 Pandemic on Banks' Risk and Performance Indicators; Case of Egypt an Empirical Study

Impact of Covid-19 on the Capital Management (Implementation and Compliance of the Basel-3 Framework) of the Banks in Bangladesh

Financial Performance of Islamic Commercial Banks Before and During the Covid-19 Pandemic in Indonesia

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