An Empirical Analysis Of Financial Performance Dynamics In Jordanian Banks: A Study Of Yearly Trends And Institutional Variations

Abstract

This study evaluates the financial performance of selected banks listed on the Amman Stock Exchange (ASE) in Jordan by examining year-over-year changes in key accounting-based metrics Return on Assets (ROA), Return on Equity (ROE), and Earnings Per Share (EPS) for the years 2021 and 2022, and by analyzing the association between bank size and ROE for 2023. The research employs a quantitative, explanatory design using paired samples t-tests and chi-square tests. Secondary data from the audited financial statements of the top 10 commercial and Islamic banks in Jordan were analyzed to assess performance shifts and structural trends. The paired samples t-tests reveal significant improvements in EPS and ROE from 2021 to 2022, indicating enhanced profitability and more efficient use of shareholder equity. ROA also showed an increasing trend, though the statistical significance was marginal. A chi-square test of independence was used to assess whether bank size is associated with higher ROE in 2023. While the Pearson Chi-Square statistic indicated no strong categorical association, the Linear-by-Linear Association showed a significant ordinal trend, suggesting that larger banks may exhibit better equity returns. These findings imply that while bank size alone does not determine financial success, consistent governance, strategic management, and operational efficiency contribute meaningfully to performance outcomes. The study offers valuable insights for investors, regulators, and banking institutions aiming to understand and improve financial performance in an emerging market context. Future research should explore macroeconomic influences and ESG integration to broaden the analysis of bank performance dynamics in Jordan.