Measuring the performance of BIMB and BMMB using financial ratio / Salbiah Mohamed

This project paper is prepared in partial of fulfillment of the degree of the Bachelor of Business Administration (Finance). For purpose, I choose a topic entitled “Measuring the performance of BIMB and BMMB using Financial Ratio”.There are a number of selected Islamic banks to be presented from banking sectors which was providing full-fledge Islamic bank. The study will be using the time series analysis, which evaluates the bank financial performance over time using financial ratio analysis.The main objective of this study is to measure the performance of full-fledge Islamic bank in order to know the success or failure of a bank. Through this study, the researchers want to expose the reader to the factors that affect the performance of the bank.There are 2 full-fledge Islamic bank in Malaysia that were selected for the purpose of this study. The banks are Bank Islam Malaysia Berhad (BIMB) and Bank Muamalat Malaysia Berhad (BMMB). The data required to be analyzed is gathered from the banks’ annual report itself. For the conclusion of this study, the financial ratio had been describes where it might allow for the comparison of the performance level of these banks through the calculation of the liquidity, profitability, leverage and capital adequacy ratio in yearly basis. From the findings and analysis, the researcher found that BMMB was the best bank compare to BIMB. From the findings also the researcher can conclude is, it shows that all the independent variables which are profitability, liquidity, leverage and capital adequacy ratio have positive relationship with the performance of bank.