Analysis of Financial Performance of Participation Banks in Turkiye Using Multi-Criteria Decision-Making Technique
It is important for banks, which are of great importance for the national economy, to use their resources effectively and efficiently due to competition in the sector. For this reason, performance evaluations of banks should be made, and necessary measures should be taken as a result of the evaluation. The purpose of this study is to analyze the financial performance of participation banks in Turkey, which are increasing their share in the sector with an increasing momentum. In the study, the financial performances of 6 participation banks operating in the Turkish Banking Sector between 2019 and 2023 were compared using Multi-Criteria Decision-Making Methods. While the SD method was used for weighting the 8 criteria selected as a result of the literature research, the GIA method was used for the success rankings of the banks. The evaluation criterion with the highest impact on the financial performance of participation banks in the periods included in the analysis was “Net Income / Total Assets (ROA)” in 2019, while this criterion was “Total Funds Collected / Total Assets” in 2020 and 2021, when the pandemic was experienced. The evaluation criterion with the highest impact on financial performance in 2022 and 2023, the recovery period after the pandemic, was “Net Income/ Total Equity (ROE)”. On the other hand, it has been determined that the evaluation criterion with the least impact on the performance of participation banks varies over the years. In 2019 and 2020, Ziraat Katılım was the most financially successful participation bank, Kuveyt Türk in 2021 and 2022, and Vakıf Katılım in 2023. In all years except 2021, Albaraka Türk has been the lowest performing bank in terms of financial success. In the last four years except 2019, Vakıf Katılım and Emlak Katılım were in the top three except for 2023.
