Title: The global credit sector in shadow of COVID-19: financial assessment

Authors: Sami Al-Kharusi; Alya Al-Foori; Sreerama Murthy

Addresses: Department of Economics and Finance, College of Economics and Political Science, Sultan Qaboos University, P.O. Box 20 Postal Code 123, Al Khodh, Sultanate of Oman ' Department of Economics and Finance, College of Economics and Political Science, Sultan Qaboos University, P.O. Box 20 Postal Code 123, Al Khodh, Sultanate of Oman ' Department of Economics and Finance, College of Economics and Political Science, Sultan Qaboos University, P.O. Box 20 Postal Code 123, Al Khodh, Sultanate of Oman

Abstract: This research paper delves into the global financial performance of the credit sector across various regions during the worldwide COVID-19 pandemic. By analysing financial ratios from 2480 banks across 12 different regions, the study employs discriminant analysis to ascertain whether there were disparities in bank performance before the pandemic (pre-COVID-19), during the first phase of COVID-19 (December 2020), and during the second phase of COVID-19 (June 2021). The research utilises aggregated financial ratios from the balance sheet and income statement. The findings reveal that bank performance in 2020 declined compared to 2019. However, the assessment becomes more intricate when contrasting 2020 with 2021. Notably, profit growth, revenue growth, return on equity, and return on assets all experienced significant decreases in 2020 when compared to the preceding year, 2019. Interestingly, the negative trends observed in revenue growth and profit growth during 2020 were reversed substantially in 2021, showcasing a remarkable shift.

Keywords: discriminant analysis; financial performance; COVID-19; global outbreak; banking sector.

DOI: 10.1504/IJAAPE.2025.144912

International Journal of Accounting, Auditing and Performance Evaluation, 2025 Vol.21 No.1/2, pp.286 - 300

Received: 04 Jan 2023
Accepted: 20 Nov 2023
Published online: 07 Mar 2025 *