The assessment of productivity and profitability of commercial banks in Jordan during the period of 2002-2006

Abstract EN

The main purpose of this paper is to assess the relationship between the profitability and productivity of the Jordanian commercial banks' services through the period of 2002-2006.

It uses financial ratios as a tool for calculating the productivity of deposits, advances, net income, and profitability of the banks.

The analysis shows that the performance of Jordanian banks has steadily improved since 2002, but there are significant differences among the Jordanian commercial banks.

The results show high positive relationship among the measures of productivity, and low positive relationship between productivity of advances and net profits and the profitability of the banks.

Also, the results show low negative relationship between deposits productivity and the profitability of the banks.