Abstract:
The aim of this research is to compare the financial performances of the first Islamic bank in
Nigeria, i.e. JAIZ bank Plc, and conventional banks to provide the stakeholder, depositors, bank
managers, and investors with a clear picture about Islamic Finance; as well as the financial
position of both Islamic and conventional banks in Nigeria. The study examined and compared
the performance of Islamic and conventional banks in Nigeria during the period of 2012-2013 by
using financial ratios, which had been collected from the banks’ financial statements on bank of
Nigeria website. The study found that JAIZ bank is less profitable, more solvent (less risky), and
less efficient compared to the conventional bank (ACCESS); but more efficient in terms of its
operations. The reasons are due to the facts that conventional banks in Nigeria have longer
history and experience in doing banking business and hold dominating position in the financial
sector with their large share in the overall financial assets of Nigeria, as compared to Islamic
banks, which in true sense, started and incorporated few years back. The study conclusively
revealed that Islamic banking proved to be more satisfactory in future if all challenges are been
taking care of.
