THE ROLE OF PLANNING BUDGET INFORMATION IN ANALYZING AND EVALUATING THE FINANCIAL PERFORMANCE OF BANKING INSTITUTIONS

Abstract

This study sought to investigate the role of budget planning information in enhancing the financial performance of Islamic banks by using Zain Iraq Islamic Bank as a case study, covering the period (2021-2022). The research commenced with an explanation of the concept of budget planning, its definition, its importance, its characteristics, its dimensions, and the use of budget planning by banks. In addition, it covered financial performance in general and financial performance at Zain Iraq Islamic Bank in particular because of the urgent need for the banking sector to overcome weaknesses that have led to serious deficiencies in banking and financial activity. Therefore, it was appropriate to prioritize budget planning information to improve financial performance to meet the goal of higher profits. The study used a mixed methodology where the researcher used a descriptive-analytical approach to develop the theoretical framework for the study variables (budget planning and financial performance) alongside a quantitative approach to analyze the historical financial data at the bank.. A set of key financial ratios (profitability, liquidity, financial leverage, and operational efficiency) was calculated and analyzed to compare performance between the two years under study. This study makes an important empirical contribution to the accounting literature relating to the Iraqi business environment and Islamic banking, by providing concrete quantitative evidence from the field on the effectiveness of using budget planning information as a tool for managing and improving financial performance, and serves as a reference for practitioners and decision-makers in the banking sector.