Evaluating Financial Performance of Jordanian Bank Listed on Amman Stock Exchange for the Period (2016-2020)

Abstract

This study aims to identify the level of financial performance of Jordanian banks listed on Amman stock exchange during the period (2016-2020), using the financial ratios approved in assessing the financial performance of banks, to determine their performance during the study phase. Concerning the purposes of achieving the objective of the study, five financial ratios are extracted from the financial reports of the banks of the research sample for each year of the study: return on assets, return on equity, total assets to equity right ratio (equity multiplier), net profit margin and utility assets. The study noted that the financial performance of the Jordanian bank group during the period of the study was fragile, due to the high debt ratio and the low rates of return for these banks, this reflects the negative impact of the Corona crisis on the Jordanian economy represented by the increase of the volume of either internal or external debt, and the decrease in the proportion of foreign investment flows.

Received: 22 February 2022 / Accepted: 7 June 2022 / Published: 5 July 2022