This thesis investigates the effect of income diversification on the performance of Islamic banks in Malaysia, Saudi Arabia, Kuwait, United Arab Emirates, Bahrain and Qatar where they operate alongside conventional banks in a dual banking system. Accounting data was drawn from 68 conventional and 42 Islamic banks from 1997 to 2009. The main focus was to see whether a greater reliance on non-financing income impacts on earnings quality and if so, how this may vary between Islamic and conventional banks. Commission and fee income, trading income and other non-financing income constitute non-financing income. For conventional banks, this is known as non-interest income, but in Islamic banking the payment and receipt of interest is prohibited so this ‘other income’ is referred to as non-financing income (that is, income unrelated to deposit-taking and loan granting). Islamic banks operate as universal banks and offer retail and wholesale financing plus investment banking services. Using various empirical approaches, we find that non-financing income positively influences banks’ risk-adjusted performance on a net overall impact basis, after taking into account, the consequential indirect impact arising from changes in income diversification (provided that the increase in non-financing income is carried out up until the optimal share of non-financing income of 0.5). Greater income diversification on its own, increases income volatility and this negatively impacts bank’s risk-adjusted performance, more so, when income diversification exceeds the optimal score of 0.5. Islamic banks are found to be more focused on deposit/loan financing and less diversified in terms of non-financing income activities compared to conventional banks. We find that Islamic banks appear to be less susceptible to earnings volatility given their lower diversified income source. Islamic banks have lower profitability (on average) on a risk-adjusted basis when compared to their conventional counterparts.

This study explores how sustainable investment, which includes social, economic,and environmental sustainability, affects financial performance in Pakistan'sbanking sector. The study evaluates financial performance using ROA, ROE, NIM,and EPS using secondary data from 26 public and private banks' consolidatedfinancial statements from 2013 through 2022. The STATA-based data analysis,which employed methods including Random effect, and fixed effect, paints acomplex picture of the contribution of sustainability to company performance.Panel regression result shows that environment scores have positive and significantinfluence on ROE, ROE and negative influence on EPS. Further, results show thatsocial scores have positive effect on ROE and EPS and negative effect on ROA.Similarly, governance scores have a positive effect on EPS and negative effect onROA and ROE. The findings have implications for various stakeholders, includinginvestors, regulators, managers, and other interested parties. By implementing ESGinvestments raise awareness. By doing so, the positive influence of ESG on bankperformance can be enhanced, as individuals who prioritize environmental andsocial factors are more likely to choose these banks for their services andinvestments. It is advisable for policymakers and regulators to offer increasedsupport to enhance stakeholder awareness and encourage companies to excel in theareas of environment, social responsibility, and effective governance.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2009. / ENGLISH ABSTRACT: The main aim of this study, firstly, is to evaluate the financial performance of the Development Bank of Namibia (DBN) over the period of 2003 to 2007. Secondly, the study aims to compare financial performance of the Development Bank of Namibia with the Development Bank of Southern Africa during the same period. In recent years, there has been a number of criticisms raised against the Development Bank of Namibia. These have been noted by the political appointment of the top management in the bank who has no experience in monitoring of the funds and development projects (World Bank, 2003). In addition, the bank has been criticized for poor performance, in terms of very low returns due to poor procurement performance and weak performance of project management units (African Development Bank, 2005). The bank has also been seen undermining people's human rights through funded projects which were only given to those people who are politically connected or comrades (The Namibian, 2002). Two financial statements of the Development Bank of Namibia, namely the Income Statement and Balance Sheet of the period of 2003 to 2007, are used to evaluate the financial performance of the bank. Trend analysis, monitoring and evaluation reports, financial ratios and statistical tools are employed to conduct this study. Trend analysis, financial ratios and statistical tools indicated that there was no evidence to infer that the Development Bank of Namibia did perform poorly during 2003 to 2007. However, monitoring and evaluation reports indicated that there was inefficiency in terms of bank operations.