ANALYSIS OF PROFITABILITY INDICATORS FOR A SAMPLE OF IRAQI COMMERCIAL BANKS

This study seeks to analyse profitability indicators for a sample of Iraqi commercial banks, with the aim of assessing their financial performance and their capacity to generate adequate returns for investors and shareholders. The analysis is based on a set of fundamental financial indicators—namely, the net profit margin, return on assets (ROA), return on equity (ROE), and net interest margin—as quantitative tools for evaluating the efficiency of banks’ management in utilizing available resources. The selected indicators were applied to a sample of Iraqi commercial banks over the period 2009–2017, drawing upon their published financial statements. The findings indicate significant variations among the banks under review in terms of profitability performance. Such performance was found to be influenced by internal factors, including managerial efficiency, asset quality, and financing policies, in addition to external factors such as the overall economic environment, political stability, and fluctuations in oil prices, which constitute the primary source of revenue for the Iraqi economy. The study concludes that enhancing profitability indicators requires Iraqi banks to strengthen revenue diversification policies, adopt modern banking practices, and improve transparency and financial disclosure in order to attract investors and foster confidence in the banking sector. Furthermore, it recommends supporting banking reforms and advancing the legislative framework in line with international standards.