Analysis of Financial Performance of Participation Banks in Türkiye Before and After Covid-19 with CAMELS Method

The Covid-19 pandemic, which affected the whole world in a short time, first emerged in 2019 and started to show its effect in 2020 in Türkiye. During the pandemic, changes were observed in the banking sector, especially in terms of financial performance. Participation banks, whose share in the banking sector has recently increased in Türkiye, offer various financing services to investors through profit and loss sharing. In this study, the financial performances of participation banks operating in Türkiye were analyzed comparatively with the CAMELS method in the pre and post Covid-19 period. The ratios used in the CAMELS analysis were determined in line with the literature research and the unconsolidated financial statements and independent audit reports of the banks were utilized. As a result of the analysis, it was determined that Vakıf Participation Bank achieved the highest performance and Albaraka Türk Participation Bank achieved the lowest performance in the pre-Covid-19 period. It was concluded that Ziraat Participation Bank had the highest performance in 2020, which was evaluated within the scope of the Covid-19 period. Albaraka Türk Participation Bank had the lowest performance in the relevant year. Finally, when the results for the years after Covid-19 are analyzed, the highest performance was achieved by Kuveyt Türk Participation Bank. Albaraka Türk Participation Bank, Türkiye Finans Participation Bank and Ziraat Participation Bank showed the lowest performance in 2021, 2022 and 2023, respectively.