This
Study examines the determinants of financial performance of Jordan Islamic Bank
(JIB) during the period 2000-2012. The financial performance (Dependent
variable) is measured by Return on Assets (ROA), Return on Equity (ROE), and
Return on Unrestricted Investment Accounts (ROUIA). On the other hand, the
Independent variables are divided to two categories which are macroeconomic
variables and bank specificfactors. Macroeconomic variables are inflation rate,
Gross Domestic Product (GDP), and Unemployment rate. Bank specific factors are
total income divided by total assets, equity ratio, debt ratio, bank size, and
liquidity ratio.Firstly, the researchers found that there is significance level
and positive relationship between ROA on one hand. Inflation, equity ratio, and
bank size on the other hand. Also, there is not significant but positive
relationship between ROA and GDP. On the other hand, there is significance
level and negative relationship between ROA and unemployment rate, and Debt
ratio. Moreover, there is insignificance level and negative relationship
between ROA and total income to total assets, and liquidity ratio. Secondly, the
analysis revealed that there is significance level and positive relationship
between ROE on one hand. Inflation and bank size on the other hand. Moreover,
there is not significance level but positive relationship between ROE and GDP,
equity ratio, and liquidity ratio. We noticed significance level and negative
relationship between ROE and unemployment rate, but ROE is insignificant and
negative relationship with total income to total assets, and debt ratio. Finally, the analysis revealed that there
is significance level and positive relationship between ROUIA and GDP.
Moreover, we noticed that there is insignificance level and positive
relationship between ROUIA and inflation rate, total income to total assets,
equity ratio, and bank size. On the other hand, there is significance level but
negative relationship between ROUIA and unemployment rate. Also, there is
insignificance level and negative relationship between ROUIA and debt ratio,
and liquidity ratio.