BANK-SPECIFIC DETERMINANTS OF ISLAMIC BANKING PROFITABILITY: EVIDENCE FROM SELECTED AFRICAN COUNTRIES
| dc.contributor.author | Jimoh, Abdulrazaq Taiye | |
| dc.contributor.author | Salihu, Ismail | |
| dc.contributor.author | Khaleel, Sa’adatu Ibrahim | |
| dc.contributor.author | Afolabi, Hafsat Olatanwa | |
| dc.date.accessioned | 2026-04-27T11:35:34Z | |
| dc.date.available | 2026-04-27T11:35:34Z | |
| dc.date.issued | 2026 | |
| dc.description.abstract | The determinants of Islamic bank profitability in Africa remain a subject of empirical investigation as the extent to which bank-specific variables affect performance is underexplored by past studies. This study therefore investigated the effects of bank-specific characteristics on profitability of Islamic banks in Africa. Specifically, the study examined the effects of asset quality, liquidity, operational efficiency, revenue diversification and capital adequacy on Islamic bank profitability is selected African countries. The study population consists of 25 African Islamic Financial Services Board (IFSB) member countries as at January 2026. Purposive sampling technique was used to select 5 countries while quarterly data were collected from IFSB database for period, 2013 to 2024. The data were analysed using Fixed Effect Regression estimation technique. Results showed that capital adequacy (β=0.91, p<0.05), deposit liability (β=0.33, p<0.05), revenue diversification (β=0.69, p<0.05) and total financing (β=0.16, p<0.05) had positive and significant effects on return on assets. Conversely, non-performing financing (β=-0.28, p<0.05), cost to income ratio (β=-1.98, p<0.05), and liquidity ratio (β=- 5.72, p<0.01) had negative significant impact on ROA. It was concluded based on these findings, that bank-specific factors affect profitability of Islamic banks in selected African countries. It is therefore recommended for policy implementation, that the management of Islamic banks in Africa should ensure that the banks are adequately capitalized by maintaining good capital adequacy to enhance their profitability. Islamic banks in Africa should also ensure that their financing activities are efficiently and effectively executed and monitored, to reduce nonperforming facilities that are capable of depleting their profitability | |
| dc.identifier.citation | Jimoh et al. (2026) | |
| dc.identifier.uri | https://uilspace.unilorin.edu.ng/handle/123456789/17627 | |
| dc.language.iso | en | |
| dc.publisher | Published by the Department of Banking and Finance, University of Abuja | |
| dc.relation.ispartofseries | 1; 1 | |
| dc.title | BANK-SPECIFIC DETERMINANTS OF ISLAMIC BANKING PROFITABILITY: EVIDENCE FROM SELECTED AFRICAN COUNTRIES | |
| dc.type | Article |