Evaluation of Commercial Banks Profitability
A comparative study of Algerian El -baraka and Society General Banks during the period (2005 – 2015)
Keywords:
Banks profitability, DuPont system, Growth rate of profits, Growth rate of operating cost, Algerian El -baraka and Society General Banks
Abstract
The objective of this study is to evaluate the profitability of two Algerian banks El-
Baraka as an Islamic bank and the Society General as a conventional bank, during the period 2005-
2015, through the measurement of DuPont indexes: ROE, ROA, PM, AU and AM, in addition to
the growth rate of profits and operating cost. The main results show that ROE, ROA and PM of El-
Baraka bank are much better than those of SGbank, whereas the AU and AM of SGare greater than
those of El-Baraka. Growth rate of profits at SG 24% and 20% at El-Baraka, in contrast growth rate
of operating cost 16% at El-Baraka and 21% at SG bank. The results also show that the indexes
data of SG bank are much consistent with regard to those of El-Baraka bank.
