Comparison of Islamic and Non Islamic Banks financial ratios

conventional=
Variable 1
Islamic =
Variable 2
Performance Measures Islamic Conventional
Banks Banks

1. Profitability
a. ROA 2.539253 1.589819
b. ROE 23.60827 20.09443
c. PER 80.81292 46.97565

2. Liquidity
a. Cash & Portfolio Investment to Deposits % CDR) 135.3317 132.8202
b. Credit to Deposits % (LDR) 76.36547 77.16405

3. Risk and Solvency

a. Shareholders' Equity to Credits % 12.26207 7.544273
b. Credits to Total Assets % 88.54802 88.15702
c. Equity Multiplier 36.48283 86.26769

4. Efficiency
a. Net Operating Margin 1.381913 1.031275
b. Asset Utilization 4.303147 4.522898
c. Operating Efficiency 43.03704 88.36559
 F 0.354504
P(F<=f) one 0.169641
Statistic Test F Critical o 0.156538
F-Value F 26.1753
P(F<=f) one 0.003963
F Critical o 6.388233
0.354504 F 2.743622
P(F<=f) one 0.175941
F Critical o 6.388233
F 0.468614
P(F<=f) one 0.240471
F Critical o 0.156538
F 4.40248
P(F<=f) one 0.090102
F Critical o 6.388233
F 7.190819
P(F<=f) one 0.041077
F Critical o 6.388233
F 0.109661
P(F<=f) one 0.027368
F Critical o 0.156538
F 0.747109
P(F<=f) one 0.392197
F Critical o 0.156538
F 0.417811
P(F<=f) one 0.20934
F Critical o 0.156538
F 1.563178
P(F<=f) one 0.337863
F Critical o 6.388233
F 1.036049
P(F<=f) one 0.486722
F Critical o 6.388233
 Return On Assets
Conventional Banks Islamic Banks
2003 1.34 1.74
2004 2.05 1.57
2005 1.20 1.85
2006 1.74 2.06
2007 1.61 2.01

Return On Assets

2.50

2.00

1.50 Conventional
Banks
%

1.00 Islamic Banks

0.50

0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Years 2003 2004 2005 2006 2007

Mean 1.344683 2.052822 1.198575 1.740116 1.612901
SD 0.586284 1.069566 0.734335 1.255677 1.455434
Min 0.609333 0.877529 0.197043 0.612849 0.513948
Max 2.227274 3.542791 2.193254 3.793264 4.162854

Islamic Banks

Banks Years 2003 2004 2005 2006 2007

Mean 2.099868 1.883765 2.628092 3.018121 3.06642
SD 1.481089 0.945314 1.556651 1.878803 2.055048
Min 0.289344 0.777376 0.881283 0.990983 0.568043
Max 3.880541 3.324679 4.615985 5.18605 5.299234
 Profit to Expense Ratio

Conventional Bank Islamic Banks

2003 47.02 76.62
2004 52.94 75.34
2005 48.41 74.72
2006 45.64 87.78
2007 40.87 89.59

Profit to Expense Ratio

100.00
90.00
80.00
70.00
60.00
50.00 Conventional Banks
%

40.00 Islamic Banks

30.00
20.00
10.00
0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 47.01881 52.93617 48.40881 45.64448 40.87
SD 19.43718 33.26367 18.84903 17.06105 16.7034
Min 24.49995 22.78198 24.95724 26.23406 21.18043
Max 73.98021 101.1168 68.76942 69.08146 64.71694

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

ntional Banks Mean 76.6213 75.34264 74.72373 87.78402 89.59291
Banks SD 24.79159 22.68468 47.29873 29.22856 53.36549
Min 46.65511 44.08454 26.64739 51.28818 25.41249
Max 112.8959 101.9484 149.508 127.7729 141.9307
 Cash & Portfolio Investment to Deposits %

Conventional Islamic Banks

2003 126.82 141.31
2004 127.74 148.66
2005 116.98 127.56
2006 141.11 128.77
2007 151.45 130.36

Cash & Portfolio Investment Deposits %

160.00
140.00
120.00
100.00
80.00 Conventional Banks
%

60.00 Islamic Banks

40.00
20.00
0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 126.8208 127.7354 116.9776 141.1148 151.4524
SD 36.96615 32.19875 47.78227 38.00602 37.17128
Min 78.30456 98.39436 78.21099 106.9699 119.6444
Max 181.5716 182.3367 197.2915 204.2494 207.1184

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 141.311 148.6579 127.5598 128.7692 130.3603
SD 37.29785 36.62693 2.770066 4.994818 12.70951
Min 112.4937 120.3206 123.6761 121.2923 116.0359
Max 203.2027 211.0035 131.4664 133.8741 149.8267
 6. Shareholders' Equity to Credits %= Equity capital/ Debt.

Conventional Banks Islamic Banks

2003 7.12 9.74
2004 8.23 13.09
2005 8.29 12.60
2006 6.78 14.55
2007 7.31 11.32

Shareholder's Equity to Credit%

16.00
14.00
12.00
10.00
8.00 Conventional Banks
%

6.00 Islamic Banks

4.00
2.00
0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 7.11715 8.229727 8.288828 6.780255 7.305405
SD 1.981121 4.747329 5.539765 4.838911 4.668587
Min 5.854297 4.496839 3.517668 2.819348 2.694115
Max 10.5787 16.52153 17.48531 14.76836 14.97015
onventional Banks
amic Banks

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 9.743903 13.09458 12.60093 14.55234 11.31861
SD 7.143657 3.402246 2.564975 6.646036 5.092128
Min 1.632872 9.032935 9.804126 9.986965 6.1039
Max 20.04396 17.9075 16.46247 25.79787 18.69537
F-Test Two-Sample for Variances

Variable 1 Variable 2
11. Operating Efficiency= Total Operating Expense/ Total Operating Revenue

Conventional Islamic Banks

2003 95.86 37.11
2004 90.28 50.12
2005 90.31 48.80
2006 80.20 40.78
2007 85.17 38.37

Operating Effciency
120.00

100.00

80.00

60.00 Conventional Banks

%

Islamic Banks
40.00

20.00

0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks/Yea 2003 2004 2005 2006 2007

Mean 95.8576 90.28465 90.31107 80.20454 85.17011
SD 48.20554 29.80933 32.70919 41.23959 43.10676
Min 26.01174 44.71101 42.68248 37.54715 34.24472
Max 151.6141 127.5251 128.28 145.9348 141.7967

Conventional Banks
slamic Banks Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 37.11067 50.1216 48.80496 40.77946 38.36852
SD 14.0104 28.89935 26.19468 24.87472 26.86567
Min 19.10946 24.02344 26.38122 23.45779 18.47247
Max 53.32379 97.72315 93.5036 82.87728 83.16553
F-Test Two-Sample for Variances

Variable 1 Variable 2
Mean 4.303147 4.522898
Variance 0.232256 0.148579
Observatio 5 5
df 4 4
F 1.563178
P(F<=f) one 0.337863
F Critical o 6.388233
 10. Asset Utilization= Total Revenue/Total Asset
Conventional Islamic Banks
2003 4.66 3.99
2004 3.85 3.86
2005 4.72 4.02
2006 4.80 4.83
2007 4.58 4.83

Asset Utilization
6.00

5.00

4.00

3.00 Conventional Banks

%

Islamic Banks
2.00

1.00

0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

onventional Banks Banks/Yea 2003 2004 2005 2006 2007

amic Banks Mean 4.661614 3.847992 4.722017 4.798951 4.583913
SD 2.17616 1.479825 3.510316 2.54734 2.945247
Min 2.711747 2.467535 0.310293 2.535638 2.16137
Max 7.077125 6.289999 9.728297 9.074556 9.53161

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 3.989549 3.856076 4.016379 4.825014 4.82872
SD 1.816059 0.761687 1.389736 1.629052 1.492306
Min 1.792603 2.953698 2.506244 2.670422 3.158424
Max 6.71582 4.801884 6.270118 7.102557 7.174663
5. Credit to Deposits % = Credit / Deposits.

Conventional Banks Islamic Banks

2003 74.92 80.49
2004 81.24 83.64
2005 75.04 73.96
2006 77.83 71.02
2007 76.79 72.72

Credit to Deposits%
85.00

80.00

75.00
Conventional Banks
%

70.00 Islamic Banks

65.00

60.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 74.92415 81.23514 75.03556 77.83163 76.79379
SD 15.63857 5.843473 24.50148 21.04702 21.68811
Min 56.31174 73.86583 48.1971 46.64839 47.95459
Max 88.52272 86.73059 112.4886 96.20005 101.4602

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 80.49431 83.63579 73.95903 71.02227 72.71596
SD 46.85688 35.52763 19.08845 14.69695 15.88769
Min 51.84872 53.90047 50.92413 52.00869 47.77941
Conventional Banks Max 163.8508 138.7325 93.75524 89.20614 90.84184
Islamic Banks
 ROA_CON
years
2002 0.609333 2.227274 1.117279 1.396666 1.372861
2003 0.877529 2.652613 1.281987 1.90919 3.542791
2004 1.004511 0.197043 1.530002 2.193254 1.068065
2005 0.612849 2.01577 1.24642 3.793264 1.032279
2006 0.513948 1.262426 1.194526 4.162854 0.930751

ROE_Con
2003 16.35216 24.15846 34.65265 23.48551 4.112453
2004 18.31742 22.05355 36.56528 21.22077 5.85203
2005 13.94733 29.75663 20.78245 27.33175 8.326243
2006 16.11047 22.53726 22.32222 26.81862 12.7757
2007 19.54818 20.67405 15.82457 26.3844 12.45056

3. Profit to Total Expenses (PER) = Profits / Total Expenses.

2003 32.63264 73.98021 55.21558 48.76565 24.49995
2004 22.78198 101.1168 43.24324 71.86222 25.67655
2005 24.95724 59.31151 56.89716 68.76942 32.10871
2006 26.23406 49.2645 51.71871 69.08146 31.92368
2007 21.18043 37.48717 49.08257 64.71694 31.88288

Cash & Portfolio Investment to Deposits %

2003 181.5716 132.9638 120.9249 78.30456 120.3393
2004 182.3367 98.39436 123.117 111.4785 123.3505
2005 197.2915 78.21099 83.06754 112.7403 113.5776
2006 204.2494 133.3481 143.5506 117.4563 106.9699
2007 207.1184 119.9052 141.3046 119.6444 169.2894

6. Shareholders' Equity to Credits %= Equity capital/ Debt.

2003 10.5787 6.28185 6.932998 5.854297 5.937909
2004 16.52153 7.239344 6.682169 6.208755 4.496839
2005 17.48531 4.989392 6.330064 9.121703 3.517668
2006 2.819348 7.13202 6.082471 14.76836 3.099081
2007 2.694115 7.219283 6.996582 14.97015 4.646894

7. Credits to Total Assets %= Debt/ Total Asset*100

2003 94.52823 94.08944 93.56369 94.46948 94.39492
2004 52.96635 74.96678 93.67403 94.1542 95.69667
2005 100 6.971198 90.5719 91.6408 96.60187
2006 97.25796 93.34277 94.26628 87.13203 96.99408
2007 97.37656 93.26681 93.46093 86.9791 95.55945

8. Equity Multiplier= Total Asset/Share Capital.

2003 18.27564 74.79057 124.2607 116.021 65.16703
2004 17.62214 85.3348 128.0958 114.9919 49.47625
2005 9.051454 72.39271 152.1448 112.3517 61.93381
2006 82.39514 66.22752 161.5583 97.77056 82.77126
 2007 90.97364 60.5927 167.3861 89.96963 55.13711

9. Net Operating Margin= Profit/Total Assets

2003 0.39693 1.291843 0.169097 1.032634 0.383706
2004 0.564024 1.794424 0.292646 1.621367 0.467944
2005 1.317501 0.106026 1.101792 2.193254 0.555625
2006 0.504426 0.974259 0.916335 3.793264 0.558505
2007 0.484264 0.988066 0.884806 2.704719 0.684419

10. Asset Utilization= Total Revenue/Total Asset

2003 3.379927 3.155175 2.711747 7.077125 6.984098
2004 3.26174 3.144609 2.467535 6.289999 4.076077
2005 6.283544 0.310293 3.658139 9.728297 3.629812
2006 2.535638 3.384621 4.067951 9.074556 4.93199
2007 2.800325 3.544793 4.881468 9.53161 2.16137

11. Operating Efficiency= Total Operating Expense/ Total Operating Revenue

2003 82.65221 89.99885 129.0111 151.6141 26.01174
2004 93.00845 98.8955 127.5251 87.28314 44.71101
2005 84.01362 128.28 112.4753 42.68248 84.1039
2006 75.83057 145.9348 55.54584 37.54715 86.16438
2007 81.64683 141.7967 55.63805 34.24472 112.5242

5. Credit to Deposits % = Credit / Deposits.

2003 87.95451 81.98372 88.52272 59.84805 56.31174
2004 82.8883 86.73059 86.31141 76.37957 73.86583
2005 81.68158 72.92905 59.88145 48.1971 112.4886
2006 90.13132 90.55314 96.20005 46.64839 65.62525
2007 62.38538 80.55576 91.61305 47.95459 101.4602
 ROA_Islamic
2003 0.289344 1.23531 3.880541 1.779525 3.314621
2004 0.777376 1.557537 2.169173 1.590061 3.324679
2005 0.881283 1.712835 2.063893 3.866465 4.615985
2006 0.990983 2.433341 1.679686 4.800543 5.18605
2007 0.568043 2.515145 1.889275 5.299234 5.060402

2003 5.488959 20.37777 29.52185 10.65764 44.20403

2004 6.263499 20.35201 28.71065 10.46937 34.0788
2005 8.047767 20.47197 24.12998 32.58043 27.69777
2006 10.73501 14.14235 23.45465 52.86939 18.48208
2007 9.962507 20.29579 29.54249 69.46769 18.20238

3. Profit to Total Expenses (PER) = Profits / Total Expenses.

2003 68.93204 46.65511 112.8959 67.70454 86.91893
2004 88.61789 62.08595 44.08454 79.97646 101.9484
2005 53.52697 89.00004 26.64739 54.93626 149.508
2006 69.89619 100.576 51.28818 89.38684 127.7729
2007 40.0641 110.3588 25.41249 130.1984 141.9307

Cash & Portfolio Investment to Deposits %

2003 118.0169 123.9097 203.2027 148.9321 112.4937
2004 137.3477 125.2541 211.0035 149.3638 120.3206
2005 128.0146 127.2034 123.6761 131.4664 127.4385
2006 132.326 129.673 126.6808 121.2923 133.8741
2007 123.9847 134.1855 116.0359 149.8267 127.7687

6. Shareholders' Equity to Credits %= Equity capital/ Debt.

2003 5.666583 13.31864 1.632872 20.04396 8.057461
2004 14.21335 13.50857 9.032935 17.9075 10.81052
2005 12.33429 16.46247 10.93832 13.46545 9.804126
2006 10.19523 25.79787 11.4297 9.986965 15.35191
2007 6.1039 18.69537 9.283357 8.258626 14.2518

2003 93.02581 88.11688 97.40203 83.30282 92.52602

2004 87.32073 87.98355 101.2898 84.81225 90.24411
2005 88.78212 63.50309 90.14018 88.13255 91.07126
2006 90.54549 81.87438 89.74268 90.91856 86.30497
2007 93.41253 82.1114 91.50524 92.3682 87.26382

2003 30.068 167.039 6.961356 7.803544 22.77832

2004 14.922 100.8638 10.43409 9.220713 20.40891
2005 17.588 137.1226 8.115518 12.68717 28.66552
2006 22.402 61.83333 12.28568 22.18941 23.01212
2007 32.744 73.00928 17.77259 24.19362 27.95019

2003 0.236131 0.927844 3.200912 0.969149 1.029295

2004 0.730465 1.168263 1.925802 1.090588 1.505986
2005 0.733455 1.35403 0.624462 0.968774 2.473062
2006 0.901705 1.923771 1.135096 1.552525 2.448776
2007 0.381749 2.021644 0.667515 1.576038 3.000786

2003 1.792603 3.729535 6.71582 3.210964 4.498822

2004 3.431175 3.623414 4.470209 2.953698 4.801884
2005 4.008415 3.430653 2.506244 3.866465 6.270118
2006 5.499509 4.346094 2.670422 4.506486 7.102557
2007 5.158197 4.347027 3.158424 4.305286 7.174663

2003 19.10946 53.32379 42.2179 44.57974 26.32246

2004 24.02344 51.93132 97.72315 46.16709 30.76302
2005 34.1844 44.3467 93.5036 45.60886 26.38122
2006 23.45779 44.01085 82.87728 26.56805 26.98334
2007 18.47247 42.14104 83.16553 18.5951 29.46844

2003 65.34105 51.84872 163.8508 59.88958 61.54139

2004 56.78663 53.90047 138.7325 98.64542 70.11388
2005 50.92413 56.21879 93.75524 84.12834 84.76867
2006 52.00869 61.00836 89.20614 78.97007 73.91811
2007 47.77941 70.20481 79.56113 90.84184 75.1926
F-Test Two-Sample for Variances

Variable 1 Variable 2
 8. Equity Multiplier= Total Asset/Share Capital.

Conventio Islamic Banks

2003 79.70 46.93
2004 79.10 31.17
2005 81.57 40.84
2006 98.14 28.34
2007 92.81 35.13

Equity Multiplier
120.00

100.00

80.00

60.00 Conventional Banks

%

Islamic Banks
40.00

20.00

0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 79.70299 79.10418 81.57488 98.14456 92.81183
SD 42.75843 45.78424 53.98391 37.16358 44.80579
Min 18.27564 17.62214 9.051454 66.22752 55.13711
Max 124.2607 128.0958 152.1448 161.5583 167.3861

Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 46.93005 31.16989 40.83575 28.34451 35.13394
SD 67.86416 39.20704 54.36607 19.24201 21.86874
Min 6.961356 9.220713 8.115518 12.28568 17.77259
Max 167.039 100.8638 137.1226 61.83333 73.00928
 7. Credits to Total Assets %= Debt/ Total Asset*100

Conventio Islamic Banks

2003 94.21 90.87
2004 82.29 90.33
2005 77.16 84.33
2006 93.80 87.88
2007 93.33 89.33

Credits to Total Assets %

100.00
90.00
80.00
70.00
60.00
50.00 Conventional Banks
%

40.00 Islamic Banks

30.00
20.00
10.00
0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks/Years 2003 2004 2005 2006 2007

Mean 94.20915 82.29161 77.15715 93.79862 93.32857
SD 0.398446 18.46348 39.41983 4.094138 3.927475
Min 93.56369 52.96635 6.971198 87.13203 86.9791
Max 94.52823 95.69667 100 97.25796 97.37656

onal Banks
Banks
Islamic Banks

Banks/Years 2003 2004 2005 2006 2007

Mean 90.87471 90.33009 84.32584 87.87721 89.33224
SD 5.359551 6.42519 11.69662 3.819536 4.663868
Min 83.30282 84.81225 63.50309 81.87438 82.1114
Max 97.40203 101.2898 91.07126 90.91856 93.41253
F-Test Two-Sample for Variances

Variable 1 Variable 2
 9. Net Operating Margin= Profit/Total Assets

Conventional Islamic Banks

2003 0.65 1.27
2004 0.95 1.28
2005 1.05 1.23
2006 1.35 1.59
2007 1.15 1.53

Net Operating Margin

1.80
1.60
1.40
1.20
1.00
Conventional Banks
%

0.80
Islamic Banks
0.60
0.40
0.20
0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 0.654842 0.948081 1.05484 1.349358 1.149255
SD 0.480749 0.703071 0.793197 1.38205 0.890739
Min 0.169097 0.292646 0.106026 0.504426 0.484264
Max 1.291843 1.794424 2.193254 3.793264 2.704719
Conventional Banks
slamic Banks
Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 1.272666 1.284221 1.230757 1.592375 1.529547
SD 1.125032 0.452325 0.748675 0.618661 1.057048
Min 0.236131 0.730465 0.624462 0.901705 0.381749
Max 3.200912 1.925802 2.473062 2.448776 3.000786
 ROE
Conventional Ba Islamic Banks
2003 20.55 22.05
2004 20.80 19.97
2005 20.03 22.59
2006 20.11 23.94
2007 18.98 29.49

Return On Equity
35.00

30.00

25.00

20.00
Conventional Banks
%

15.00 Islamic Banks

10.00

5.00

0.00
2003 2004 2005 2006 2007
Years
 Conventional Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 20.55225 20.80181 20.02888 20.11285 18.97635
SD 11.27317 10.95328 8.97867 5.603108 5.258519
Min 4.112453 5.85203 8.326243 12.7757 12.45056
Max 34.65265 36.56528 29.75663 26.81862 26.3844
onal Banks
anks
Islamic Banks

Banks Yea 2003 2004 2005 2006 2007

Mean 22.05005 19.97486 22.58558 23.9367 29.49417
SD 15.43924 11.76577 9.276746 16.86194 23.40665
Min 5.488959 6.263499 8.047767 10.73501 9.962507
Max 44.20403 34.0788 32.58043 52.86939 69.46769