Financial Performance Evaluation Using EAGLE Model: A Comparative Analysis of Islamic and Conventional Banks

Abstract

The basic purpose of this study is to evaluate and compares the financial performance of Islamic and conventional banks using the EAGLE model. Date was collected from the annual reports of five conventional and five Islamic for the years from 2017 to 2024. The study compares the five key areas of financial soundness: earnings, asset quality, growth, liquidity and equity. The findings reveal that conventional banks outperform Islamic banks in most areas, particularly in terms of profitability and risk management. However, Islamic banks exhibit higher liquidity and capital adequacy. These results offer valuable insights for policymakers, regulators, and investors In the banking industry.