EMPIRICAL EXAMINATION OF THE FINANCIAL PERFORMANCE OF ISLAMIC BANKING IN NIGERIA: A CASE STUDY APPROACH

Abstract

This study examines the financial performance of Jaiz Bank Plc, the only Islamic bank licensed to operate in Nigeria, over a period of two years (2013 – 2014). It examines the financial performance of the bank in terms of profitability, liquidity, leverage and growth. Time series data were collected and analysed by way of Gray Comparative Index. The study finds positive relationship between profitability, leverage, growth ratios and financial performance. There is sufficient evidence also that shows that the relationship between liquidity and financial performance is negative. The study therefore recommends that bank managers should take measures to improve profitability by taking advantage of leverage and growing their banks. They should be careful in keeping liquidity beyond desirable level since liquidity and financial performance have negative relationship. Bank regulators should take measures to ensure stable economic conditions.