Evaluating the financial performance of Iraqi banks through a matrix analysis (performance – importance)
An analytical study of a sample of listed commercial banks
In the Iraqi Stock Exchange for the period (2006-2020)
Introduction message
To the Council of the College of Administration and Economics at the University of Karbala
As part of the requirements for obtaining a master’s degree in Banking and Finance
Submitted by
Abbas Abdel-Aali Karim Al-Aboudi
Supervisor by
Assistant professor Doctor
Zainab makee mahmood Albanaa
Abstract
The study aims to assess the financial performance of Iraqi banks by analyzing the performance-importance matrix. This study is based on ten commercial banks listed in the Iraqi Stock Exchange for the period from 2006 to 2020, which are (Baghdad, Iraqi commercial, investment, Sumer, Middle East, United, National of Iraq, credit, business bay, Mosul for development and investment), where its financial data was obtained from its annual reports published on the Iraq Stock Exchange website, and the study applied the modified Altman model to predict the failure of banks, and the financial performance indicators were analyzed (profitability, liquidity, risk) To find out the financial performance of the study sample banks and then evaluate their performance by analyzing the performance-importance matrix to test a series of hypotheses that appear by reviewing the previous literature. The results of the study, by analyzing the financial failure of the study sample banks, indicate that there is a discrepancy in the level of financial failure based on the modified Altman model, while it appeared through the analysis of financial performance indicators that the study sample banks vary in achieving the required level of performance. While it was found through analyzing the impact and importance of the matrix variables (performance-importance) through the statistical program Smart PLS that failed banks were subject to a decline in financial performance for the period (2016-2020) due to their poor performance during the period (2006-2010, 2011-2015) respectively.
Which reflected negatively on profitability. On the contrary, it was certain that non-failed banks would witness an increase in financial performance in the period (2016-2020) due to their positive performance during the period (2006-2010, 2011-2015) respectively, which reflected positively on profitability . And in order to improve the levels of financial performance Abstracts of banks, the study recommends managers to evaluate financial performance through the performance-importance matrix on a regular basis because this approach allows managers to improve their management strategies because it indicates the main weaknesses that require immediate treatment.
Keywords: financial performance evaluation, performance importance matrix
