Browsing by Author "Osunkule, U. A."

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    Islamic Financial Services and Profitability of Islamic Banks
    (University of Turin, Italy, 2026) Jimoh, Abdulrazaq Taiye; Ajijolakewu, S. A.,; Attah, J. A.; Afolabi, H. O.; Sanni, I.; Osunkule, U. A.; Abdulmajeed, T. A.; Khaleel, S. A.
    The adoption of shariah-compliant financial services has been reflected in Islamic banking’s contribution to the growth of the Islamic financial market in recent years. However, Islamic banks occupy a small share of domestic banking markets worldwide. The low market share has raised some questions regarding the profitability of various Islamic financial services. This study, therefore, examined the effect of Islamic financial services on the profitability of Islamic banks in selected countries. Specifically, the study assessed the effects of exchange-based, equity-based, fee-based, and supporting financial services on the profitability of Islamic banks. Quarterly data were collected from the Islamic Financial Services Board (IFSB) database between 2014Q1 and 2022Q4. Fixed Effects Regression analysis was used to analyse the data. The study found that Murabaha (coef = 0.12, p = 0.004), Istisna' (coef = 0.03, p = 0.001), Musharaka (coef = 0.09, p = 0.000), and Ijarah (coef = 0.05, p = 0.000) had positive, significant effects while Mudharaba (coef = −0.25, p = 0.021) and Qard Hasan (coef = −0.68, p = 0.007) had negative effects on Islamic banking profitability in selected countries. The study concluded that exchange-based, equitybased, fee-based, and supporting financial services had a significant impact on the profitability of Islamic banks. It was therefore recommended that Islamic banks focus on providing excellent customer service to enhance customer satisfaction and loyalty, thereby increasing their profitability.