Abstract:
The Islamic banking industry is one of the most important and growth
industry of Sri Lankan economy, not only the Sri Lankan economy but whole world also.
There are many banking sectors such as commercial, private and public banks working in Sri
Lanka. Banking sectors are growing faster and competition.This study investigates the
financial performance Amana Bank, Sri Lanka during the period of 2011-2015.Gradual
development of Islamic banking had created competition among Islamic windows and
conventional banks. Since Islamic banks offered products under Islamic principles, most of
Muslim preferred Islamic banks rather than conventional banks. Currently, even non-Muslim
prefer Islamic banking as the banks starting to offer an attractive products and services.
However, some people still in doubt and argued on Islamic banks’ performance. That is why,
considering the performance of Amana bank, on attempt has been made in this paper to
study the financial analysis of Amana bank. Researchers have rendered their knowledge to
present this study on all Performance of Amana bank PLC. In this study, it is shown that
various operational activities can be used in the evaluation of the operation of this Bank.
This study’s main objective is tostudy the current assets and current liabilities so as to know
whether the shareholders and normal customers could invest in Amana Bank or notand also
evaluate how effectively the bank is utilizing its assets against the industry average, as well
as measure the profitability,financial positionand liquidity position of the bank. The study is
based on secondary data, which covers a period of five years, i.e. 2011-2015. To analyze the
data and find out Ratio analysis was used as a method of analysis.Considering the
productivity ratio, current ratio, quick ratio, profitability ratio, solvency ratio. This study
found through its last year (2015) performance that this bank is trying to increase its
performance efficiency.The findings of the study show the fluctuation of the financial
position for Amana Bank and some of their financial factors influence the financial
performance of the bank. Then, it is found that the overall financial performance of Amana
Bank is fluctuating in terms of liquidity ratios, asset quality ratios and profitability ratios
(ROA, ROE). This study suggests a set of recommendations regarding the development and
enhancing of some banking operations, which will boost the bank's profitability and improve
the financial performance of the bank.
