The Impact of Loan Portfolio Growth on The Financial Performance of Iraqi Banks: An Analytical Study of a Sample of Commercial Banks Listed on The Iraq Stock Exchange for The Period 2017-2022
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Abstract
The study aims to examine the impact of loan portfolio growth on the profitability of Iraqi banks and to determine the extent to which this growth contributes to improved financial performance. This study utilizes a sample of five commercial banks listed on the Iraq Stock Exchange (2017-2022). Two financial indicators were selected to measure financial performance: profitability ratio and liquidity ratio. A descriptive analytical approach was used to analyze the data and information contained in the financial statements of the banks included in the study. Ready-made computer programs, including MS Excel and Eviews 13, were used to verify the hypotheses, answer questions related to the research problem, and achieve the objectives. The study reached several conclusions, the most important of which is the existence of a significant direct relationship between loan portfolio growth and profitability. This indicates that increasing the number of loans granted by banks leads to improved profitability, consistent with the fixed effects model, which has proven its superiority in explaining this relationship.
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