Jimoh, Abdulrazaq TaiyeSalihu, Ismail2026-05-022026-05-022026Jimoh & Salihu (2026)https://uilspace.unilorin.edu.ng/handle/123456789/17887Profit-sharing and trade-based financings are the major means for revenue generation in Islamic banks. Making these financing contracts available in accordance with Shariah principles will not only increase the growth of banking market but also propel the profitability of existing Islamic banks. Profitability of the banks thus depends largely on effectiveness of the revenue models, asset (financing) quality as well as diversification methods employed. Despite the established theoretical link between asset quality, revenue diversification and profitability, empirical relationship between the variables remains underexplored. Therefore, this study examined the effect of asset quality and revenue diversification on Islamic bank profitability in Africa. A sample of five countries were purposively selected for the study from Islamic Financial Services Board (IFSB) member African countries. Country-level Quarterly data were extracted from IFSB database for 11 years from 2013 to 2023. The data were analysed via fixed effects regression technique. Findings revealed that revenue diversification had positive, significant effect (0.69, p<0.05) on return on assets (ROA). Conversely, non-performing financing had negative, significant effect (-0.28, p<0.05) on ROA. The study concluded that Islamic banks’ profitability is significantly affected by revenue diversification and asset quality, in selected African countries. The study recommended diversification to more shariah-compliant products and effective monitoring of financing activities to reduce non-performing facilities that can deplete Islamic banks’ profitability.enArticle