Author(s): Afroja Akter and Fozia Rahman
Abstract: This paper aims to assess and compare the performance of Islami Bank Bangladesh PLC bank based on Balanced Scorecard Model. This research used secondary sources of data which includes IBBPLC’s Annual reports from the year 2018 to 2022, Financial Stability report of Bangladesh Bank, journals and various websites etc. Data were analyzed through tables, graphs and charts. The findings of the study reveal that Islami Bank Bangladesh PLC's financial performance, under the financial perspective of the BSC model, is mixed. Indicators show a decline in performance during 2019 and 2020 compared to 2018, because of the impact of COVID-19. However, the bank's performance improves in 2021, although its liquidity reserve in 2020 was lower than in all previous years, which is concerning. Comparing the banking industry as a whole, Islami Bank Bangladesh PLC performs better from 2018 to 2021. However, in 2022, the bank's performance declined in terms of profit maximization and liquidity reserve. From the customer perspective, the bank's deposit growth significantly decreased in 2022 compared to previous years and the industry average. Under the learning and growth and internal business process dimensions of the BSC model, indicators show that Islami Bank Bangladesh PLC's performance has been improving year by year, outperforming the banking industry. Findings suggest that balanced scorecard is a more realistic and comprehensive approach to measure banks performance compare to only traditional financial performance as it helps to find out specific area of improvement which ultimately leads to achieve banks strategic goals and gain key competitive advantages. So, banks should use this model more for their self-improvement as well the analysts and other stakeholders will be more benefited for taking their respective decisions like investment and credit by analyzing the banks based on this model.