Evaluating Financial Performance Indicators Before and During the Corona Pandemic and their Relationship to Return on Assets

Case Study of the Algerian Salam Bank

Abstract

The aim of this study is to evaluate some financial performance indicators before and
during the Corona pandemic (Covid-19) and to study their relationship to the return on assets, by
analyzing the evolution of the capital adequacy ratio (CAR), the coefficient of operational
efficiency (BOPO), and the financing-to-deposit ratio (FDR). of the Algerian Salam Bank during
the period from 2011 to 2020, then studying its relationship to the rate of return on assets, The
study adopted the descriptive approach in analyzing the development of financial indicators during
the study period and the quantitative approach in studying the relationship between them using the
multiple regression model. And it found that the indicators under study were affected by the
Corona pandemic (Covid-19), and it also found that there was a positive relationship between the
ratio of financing to deposits and the rate of return on assets, while there was no relationship with
other indicators. The study recommended working on improving the management of financing
operations, which would generate annual returns that would have an impact on improving the
bank's performance. On the other hand, at the scientific and academic level, the study recommends
increasing the sample size and the time period in future studies, taking into account the total
variables that may have an impact on these indicators such as gross domestic product, inflation,
interest rates and other variables.