Impact of COVID-19 on the financial performance of Islami Bank Bangladesh PLC

Abstract

The COVID-19 pandemic has had a substantial effect on the financial performance of Islami Bank Bangladesh PLC (IBBPLC) between 2010 and 2022. This calls for a full understanding of the difficulties and prospects encountered by Islamic banks in Bangladesh. The objective of this study is to examine the impact of the pandemic on IBBPLC's financial metrics, specifically focusing on ROE. ROA, classified investment, market price ratio. IBBPLC, a leading institution in the Islamic banking sector, has made major contributions to financial inclusion and economic development. However, the epidemic has presented substantial obstacles to its operations and stability. This report provides valuable insights for policymakers, regulators, investors, and practitioners in the Islamic finance industry by examining the internal and external factors that influenced IBBPLC's financial performance throughout the crisis. The results highlight the importance of implementing strategic adjustments, effectively managing risks, and adopting sustainable banking practices in successfully navigating crises and ensuring the long-term sustainability of Islamic institutions. The research's recommendations aim to guide strategic decision-making, risk management, and business continuity planning within IBBPLC and the wider Islamic banking sector in Bangladesh. These recommendations aim to enhance resilience and stability in the face of future challenges.