EVALUATING THE FINANCIAL PERFORMANCE IN JORDANIAN COMMERCIAL BANKS UNDER (COVID-19)
This study aimed at evaluating the financial performance in Jordanian commercial banks under (Covid-19), by examining if there are differences in the financial performance of Jordanian commercial banks before and after (Covid-19). The financial performance was measured through four indicators: (rate of return on total assets, rate of return on shareholders’ equity, net interest and commissions to total income, rate of payable interest to net facilities). In order to achieve the objectives of the study, the descriptive analytical method was used, and the study sample consisted of (13) commercial banks listed on Amman Stock Exchange during the period 2019-2020 Using the quarterly budgets of banks. The study found a set of results, the most important of which are: There are statistically significant differences in all financial performance indicators represented by (rate of return on total assets, rate of return on shareholders’ equity, net interest and commissions to total income, rate of payable interest to net facilities) before and after (Covid-19) in Jordanian commercial banks. The results of the study also showed that differences occurred in (rate of return on total assets, rate of return on shareholders’ equity, rate of payable interest to net facilities) were in favor of the period before the (Covid-19) pandemic, while the differences that occurred in the indicator of net interest and commissions to total income were in favor of the period after the (Covid-19) pandemic. The study concluded a set of recommendations, the most important of which are: Commercial banks should study the various alternatives available to optimally use their assets, especially during exceptional periods such as the (Covid-19) pandemic, and develop policies related to exceptional circumstances where they set appropriate rates of interest on loans in order to encourage companies and individuals to take loans, increasing banks’ profits and improving the financial performance indicator of net interest and commissions to total income.
financial performance, Jordanian commercial banks, Return on total assets, Return on equity, COVID-19