Authors: Manoj sangisetti, Omar Tarzibash, Maryna Ambark, Brejita Orahin
Abstract: This study examines the effect of credit risk management on the financial performance of a selected commercial bank operating in Iraq over the period 2019–2024. The research is grounded in secondary data obtained from audited annual reports and publicly available financial disclosures. Key financial indicators—including Return on Assets (ROA), Return on Equity (ROE), Capital Adequacy Ratio (CAR), Debt-to-Equity ratio, operating income, and net profit—are analyzed using descriptive and trend analysis techniques. The findings reveal a substantial improvement in profitability, with ROA increasing from 0.60% to 8.00% and ROE rising from 2.70% to 42.00%, indicating markedly enhanced operational efficiency and shareholder returns. The subject institution maintained robust capital adequacy throughout the review period, ensuring financial stability and resilience against credit-related risks. However, the Debt-to-Equity ratio remained relatively elevated, reflecting continued reliance on financial leverage. The study concludes that effective credit risk management played a pivotal role in improving financial performance, supported by improvements in asset quality, prudent provisioning practices, and strong operational growth. These findings underscore the importance of balancing profitability with risk to ensure long-term institutional sustainability in the banking sector.
DOI: http://doi.org/10.5281/zenodo.20488526
