The role of intellectual capital in achieving financial performance: A study of Bekhal and Eskan banks in Erbil city

The primary purpose of this study is to examine the role of intellectual capital towards achieving the financial performance of Bekhal and Eskan banks in Erbil city. In this regard, have tested the relationship between intellectual capital and financial performance through obtaining perceptions from a survey sample of the bank managers. Accordingly, the researcher applied the effect of the VAIC model in this correlation to aid in achieving the financial performance of the banks. The results also found efficiencies of intellectual capital have a significant relationship with the financial performance indicators in terms of Return on Assets (ROA), Return on Equity (ROE), Return on Investment (ROI), and Operating Profit Margin (OPM). Furthermore, showed a positive correlation between the three dimensions of intellectual capital (human capital, structural capital, and relational capital) and the bank's financial performance. Relational capital achieved the highest positive correlation with the bank's financial performance. On the other hand, human capital has the weakest positive correlation with bank's financial performance. The results confirmed that intellectual capital impacted on the financial performance of banks. Farther, relational capital achieved the highest statistically impact on the financial performance of the banks. In contrast, human capital has the weakest impact on the financial performance of the banks. Keywords: Intellectual Capital, Financial Performance, Banks