COMPARATIVE PERFORMANCE STUDY OF CONVENTIONAL AND ISLAMIC BANKING IN SAUDI ARABIA AL JAZIRA BANK

Abstract

This research aims to compare the financial performance of profitability of bank Al Jazira pre and post converting from mixed bank (conventional and Islamic bank) to totally full Islamic bank gives two stages of conversion. Financial ratios were estimated from annual reports and financial statement, which include income statement and balance sheet for the period of time from 2000 to 2013. Financial ratios were estimated to measure performances of the bank itself between the years and stages of converting in term of profitability. Using regression model to analyze and estimate the data in order to compare two stages. The study concluded that bank Al Jazira while they converted to fully Islamic bank has negative direction of profitability according to ROE and ROA, which is in mixed stage al jazirah bank, generated more profits as compared to Islamic stage.