Published Online:January 2025
Product Name:The IUP Journal of Accounting Research & Audit Practices
Product Type:Article
Product Code:IJARAP120125
DOI:10.71329/IUPJARAP/2025.24.1.234-252
Author Name:Yathish Kumar and Shazia Khuramy
Availability:YES
Subject/Domain:Finance
Download Format:PDF
Pages:234-252
The study analyzes the financial performance of the top five private banks in Afghanistan using CAMEL model approach and annual audited financial reports from 2018 to 2022. Quantitative method was used to assess the financial performance of banks across various widely known financial parameters. The results found that among five private banks, Azizi Bank was the frontrunner in capital assets in Afghanistan, consistently demonstrating a significant capital adequacy ratio over the years. Ghazanfar Bank stood out for its high asset quality ratio in the initial years. First Microfinance Bank and Afghan United Bank showed consistent management efficiency over the years. On the other hand, Ghazanfar Bank and Afghanistan International Bank maintained relatively stable earnings ratios, and in terms of liquidity, Afghanistan International Bank consistently maintained high liquidity ratios. The findings also revealed that the financial performance of private banks in Afghanistan varied across dimensions, with each bank facing unique challenges and opportunities. Overall, understanding the distinctions of financial performance across these dimensions is essential for stakeholders, policymakers and bank management to devise strategies for enhancing the stability and sustainability of Afghanistan’s banking sector.
A bank is a financial entity connected with money, its substitutes, and other money-related services. It serves as a financial intermediary, accepting deposits and making loans.