International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Measuring Profitability Efficiency of the Saudi National Banks
Dr. Ahmed Arif Almazari, Dr. Mohammad Abdelkarim Almumani

This study attempted basically to measure the profitability efficiency of the Saudi national banks for the period 2006-2010. It is evaluatory in nature, drawing sources of information from secondary data. The profitability efficiency of banks is studied on the basis of financial variables and ratios. Multiple Regression was used to test the effect of independent variables on ROA and operating income (OI), it was found independent variables affect ROA and it does not affect operating income (OI). It was also found that banks with higher total assets does not always mean that it has better profitability efficiency. It is recommended that this study can be a source of help to bank managers to improve their profitability performance and formulate policies that will promote effective financial system. The Saudi national banks can perform better as they exist in a very save, sound and stable economic environment.

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