Determinates of Islamic banking profitability: an evidence from Gulf Cooperation Council (GCC) (2011-2014) Online publication date: Thu, 24-Aug-2017
by Qasim Mousa Abu Eid; Hussein Mohammad Salameh
American J. of Finance and Accounting (AJFA), Vol. 5, No. 1, 2017
Abstract: Islamic banking is attracting the attention of the economic and finance people alike. This paper analyses micro models, micro and macro models of Islamic banking profitability in Gulf Cooperation Council (GCC) during 2011-2014. The results show that overheads divided by total assets (OVRHD) negatively affect profitability whether at micro level model or micro and macro level model. In addition, annual growth rate of real gross domestic product per capita (GDPPC) positively affect profitability represented by ROA at the micro and macro model. While the ratio of non-interest earning assets divided by total asset (NIEATA) negatively affect profitability represented by ROE at the micro and macro model. Finally, there is no effect of the other variables on the profitability in the four models. As a continuation of this study, further research should be carried out using other Islamic demographic determinants as the adjusted R-square in our model is low.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the American J. of Finance and Accounting (AJFA):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook