Table 4 Sample
statistics by bank type (2005–2015) and t-test
for mean difference (CB vs. IB)
Variable
Conventional banks
Islamic banks
Mean Test
Obs
Mean
SD
Min
Max
Obs
Mean
SD
Min
Max
df
|t| value
p-value
Cost efficiency measures
CIR (%)
168
32.78%
12.66%
1.04%
96.40%
86
43.70%
12.85%
10.61%
75.16%
252
6.4381
0.0000
***
NIM (%)
169
4.28%
7.24%
1.27%
95.70%
86
3.80%
6.62%
1.20%
63.80%
253
0.5286
0.5977
Profitability measures
EARTA (%)
169
2.40%
30.91%
−98.12%
96.43%
86
3.95%
33.78%
−98.11%
87.76%
253
0.3566
0.7219
EARGL (%)
169
0.21%
30.16%
−99.69%
99.09%
86
1.31%
21.24%
73.46%
86.81%
253
0.3348
0.7381
Bank characteristics
Deposits/Assets (%)
169
73.04%
6.61%
51.08%
89.60%
89
74.21%
14.14%
20.97%
93.83%
256
0.7366
0.4629
Loans/Assets (%)
169
62.08%
10.97%
23.05%
82.01%
89
64.23%
12.80%
31.42%
92.74%
256
1.3449
0.1806
ROA (%)
169
2.33%
2.13%
−3.25%
20.56%
89
1.22%
3.22%
−6.59%
26.11%
256
2.9355
0.0039
***
Other Earning Assets (%)
168
16.76%
12.97%
1.06%
75.37%
89
22.64%
19.24%
0.08%
95.88%
255
2.5883
0.0107
**
Income Diversity (%)
169
38.68%
16.34%
−15.88%
96.01%
89
39.89%
21.04%
1.02%
96.86%
256
0.4740
0.6362
Non-Interest Income (%)
169
33.52%
14.61%
−20.96%
96.01%
89
30.44%
15.49%
1.00%
87.42%
256
1.5468
0.1238
Log(Size)
169
10.62
1.77
7.27
17.28
89
9.99
0.97
7.37
11.92
256
3.6801
0.0003
***
Capital adequacy
Tier 1 ratio (%)
132
18.48%
5.56%
9.38%
37.21%
51
17.43%
7.50%
6.74%
35.14%
181
0.9145
0.3634
Tangible Equity (%)
169
21.51%
10.99%
5.36%
81.49%
89
19.74%
14.67%
1.26%
84.05%
256
0.9990
0.3195
Liquid Assets (%)
169
21.11%
10.87%
0.69%
55.60%
89
15.95%
10.18%
1.87%
53.24%
256
3.7787
0.0002
***
Funding Fragility (%)
168
11.94%
15.63%
0.01%
95.40%
84
16.63%
25.53%
0.01%
100.00%
250
1.5463
0.1248
Risk measures
Equity Volatility (%)
116
24.65%
22.36%
1.00%
97.09%
52
23.88%
21.34%
1.00%
78.01%
166
0.2122
0.8324
Log(Z)
184
2.86
0.94
−1.18
3.96
83
2.58
0.89
−0.48
3.56
265
2.3426
0.0203
**
Ownership structure
Ownership concentration (%)
122
34.13%
20.85%
0.00%
100.00%
89
47.70%
32.57%
0.00%
100.00%
209
3.4479
0.0007
***
Government ownership (%)
121
11.61%
22.93%
0.00%
64.84%
89
5.20%
13.82%
0.00%
100.00%
208
2.5154
0.0127
**
Foreign ownership (%)
114
12.80%
21.66%
0.00%
100.00%
89
9.74%
18.32%
0.00%
58.00%
201
1.0897
0.2772
Dummy
LISTED_D
242
0.82
0.39
0
1
110
0.90
0.30
0
1
350
2.1539
0.0321
**
ISLAMIC_D
242
0.00
0.00
0
0
110
1.00
0.00
1
1
350
n/a
n/a
Crisis_D
242
0.18
0.39
0
1
110
0.18
0.39
0
1
350
0.0000
1.0000
*Significance Level (t-value): |t|***
! 2.60, |t|**
! 1.97, |t|*
! 1.65, *Significance Level (p-value): p***
0.01, p**
0.05, p*
0.10
Note
The sample includes 352 observations of 32 banks in the UAE over 11 years. The sample of conventional banks includes 242 observations, and the sample of Islamic banks includes 110
observations. The descriptive statistics show the number of observations per variable, the mean, the standard deviation, and min & max values. The t-test
presents the significance of the mean
difference for all the variables between the samples of Islamic banks and conventional banks
68
F. Mrad and M. Mateev
statistics by bank type (2005–2015) and t-test
for mean difference (CB vs. IB)
Variable
Conventional banks
Islamic banks
Mean Test
Obs
Mean
SD
Min
Max
Obs
Mean
SD
Min
Max
df
|t| value
p-value
Cost efficiency measures
CIR (%)
168
32.78%
12.66%
1.04%
96.40%
86
43.70%
12.85%
10.61%
75.16%
252
6.4381
0.0000
***
NIM (%)
169
4.28%
7.24%
1.27%
95.70%
86
3.80%
6.62%
1.20%
63.80%
253
0.5286
0.5977
Profitability measures
EARTA (%)
169
2.40%
30.91%
−98.12%
96.43%
86
3.95%
33.78%
−98.11%
87.76%
253
0.3566
0.7219
EARGL (%)
169
0.21%
30.16%
−99.69%
99.09%
86
1.31%
21.24%
73.46%
86.81%
253
0.3348
0.7381
Bank characteristics
Deposits/Assets (%)
169
73.04%
6.61%
51.08%
89.60%
89
74.21%
14.14%
20.97%
93.83%
256
0.7366
0.4629
Loans/Assets (%)
169
62.08%
10.97%
23.05%
82.01%
89
64.23%
12.80%
31.42%
92.74%
256
1.3449
0.1806
ROA (%)
169
2.33%
2.13%
−3.25%
20.56%
89
1.22%
3.22%
−6.59%
26.11%
256
2.9355
0.0039
***
Other Earning Assets (%)
168
16.76%
12.97%
1.06%
75.37%
89
22.64%
19.24%
0.08%
95.88%
255
2.5883
0.0107
**
Income Diversity (%)
169
38.68%
16.34%
−15.88%
96.01%
89
39.89%
21.04%
1.02%
96.86%
256
0.4740
0.6362
Non-Interest Income (%)
169
33.52%
14.61%
−20.96%
96.01%
89
30.44%
15.49%
1.00%
87.42%
256
1.5468
0.1238
Log(Size)
169
10.62
1.77
7.27
17.28
89
9.99
0.97
7.37
11.92
256
3.6801
0.0003
***
Capital adequacy
Tier 1 ratio (%)
132
18.48%
5.56%
9.38%
37.21%
51
17.43%
7.50%
6.74%
35.14%
181
0.9145
0.3634
Tangible Equity (%)
169
21.51%
10.99%
5.36%
81.49%
89
19.74%
14.67%
1.26%
84.05%
256
0.9990
0.3195
Liquid Assets (%)
169
21.11%
10.87%
0.69%
55.60%
89
15.95%
10.18%
1.87%
53.24%
256
3.7787
0.0002
***
Funding Fragility (%)
168
11.94%
15.63%
0.01%
95.40%
84
16.63%
25.53%
0.01%
100.00%
250
1.5463
0.1248
Risk measures
Equity Volatility (%)
116
24.65%
22.36%
1.00%
97.09%
52
23.88%
21.34%
1.00%
78.01%
166
0.2122
0.8324
Log(Z)
184
2.86
0.94
−1.18
3.96
83
2.58
0.89
−0.48
3.56
265
2.3426
0.0203
**
Ownership structure
Ownership concentration (%)
122
34.13%
20.85%
0.00%
100.00%
89
47.70%
32.57%
0.00%
100.00%
209
3.4479
0.0007
***
Government ownership (%)
121
11.61%
22.93%
0.00%
64.84%
89
5.20%
13.82%
0.00%
100.00%
208
2.5154
0.0127
**
Foreign ownership (%)
114
12.80%
21.66%
0.00%
100.00%
89
9.74%
18.32%
0.00%
58.00%
201
1.0897
0.2772
Dummy
LISTED_D
242
0.82
0.39
0
1
110
0.90
0.30
0
1
350
2.1539
0.0321
**
ISLAMIC_D
242
0.00
0.00
0
0
110
1.00
0.00
1
1
350
n/a
n/a
Crisis_D
242
0.18
0.39
0
1
110
0.18
0.39
0
1
350
0.0000
1.0000
*Significance Level (t-value): |t|***
! 2.60, |t|**
! 1.97, |t|*
! 1.65, *Significance Level (p-value): p***
0.01, p**
0.05, p*
0.10
Note
The sample includes 352 observations of 32 banks in the UAE over 11 years. The sample of conventional banks includes 242 observations, and the sample of Islamic banks includes 110
observations. The descriptive statistics show the number of observations per variable, the mean, the standard deviation, and min & max values. The t-test
presents the significance of the mean
difference for all the variables between the samples of Islamic banks and conventional banks
68
F. Mrad and M. Mateev