Financial analysis of banking sustainability indicators, an analytical study of a sample of commercial banks for the period (2005-2019)

Abstract

The banking sector is currently facing great challenges resulting from intense competition in the financial environment, and this is what makes bank management continuously seek innovation and excellence by adopting the three main dimensions of sustainability in order to remain in the banking arena, and this study came to shed light on the financial analysis of those The dimensions represented by the economic and financial dimension with its indicators (market value added, earnings per share, deposit growth rate, and credit growth rate), while the second dimension (social dimension) indicators included the number of employees, the number of bank branches, spending on development research, and the credit granted to services. Society and finally the environmental dimension included the index of credit granted to the agricultural sector, and the study also included a theoretical aspect to determine the concept of banking sustainability, and the study concluded with many conclusions, the most prominent of which is that four banks of the sample achieved an added value to the shareholders ’wealth, respectively (Iraqi Credit, Baghdad, Business Bay, Sumer), the credit bank achieved the highest added value, which amounted to an average of 2,182 dinars for the period. The wealth of shareholders for reasons related to the activity of the stock market and the country's economic, political and security conditions, as well as the activity of the banks themselves. The study also found that the credit granted at the level of banks, the sample of the environmental dimension represented (by the credit granted to the agricultural sector) is not commensurate with the importance of this dimension. (3355) million dinars, and the study also found that the number of banks does not meet the need of the Iraqi economy compared to the number of residents, the size of bank liquidity and the need for money markets and investment.