Analysis of financial performance and financial efficiency: Comparative study of participation banks that in the Turkey and the Gulf Cooperation Council countries

In this study, it is aimed that determine financial performance and efficiency and to compare these scores between the years 2016-2019 in participation banks in Turkey and the Gulf Cooperation Council (GCC) members countries. In this context, the financial data of the banks were obtained from the balance sheet and income statement in the relevant years. The data obtained were analyzed using TOPSIS method to determine financial performances and Data Envelopment Analysis to determine financial efficiency scores. While performing data envelopment analysis, output maximization was taken as a basis. The weight values to be used in the TOPSIS method were calculated using the entropy weight method. According to the performance analysis results, it was found that Kuveyt Türk, one of the participation bank operating in Turkey, takes the first place in other years except 2018 and on the contrary, Albaraka Türk fell to the last place in the performance ranking in the last two years. When examining the results regarding the financial performance comparison between countries, it was determined that the United Arab Emirates ranked first in the other years except 2018. In 2018, Oman ranked first in the performance ranking. In this performance rank, it was found that while Turkey ranks second in 2016, ranks third the other three years. It was determined that Bahrain ranks last places (6th or 7th) in the performance ranking. According to the results of the efficiency analysis of the banks, it was found that the technical efficiency score of all countries was 1.00 in 2016 and 2018 which means these are efficient. In 2017, it was determined that other countries except Qatar are efficient as their technical efficiency scores are 1.00. Contrary to these results, it was determined that only participation banks in Kuwait and the United Arab Emirates are efficient in 2019.