The impact of asset management on achieving bank profitability (Applied study within Al-Khaleej commercial bank)

Abstract

Banking activity is essential in countries' economies, as banks are considered intermediate financial institutions between surplus and deficit. Bank managers work on achieving the main objectives of any bank, which are: (profitability, liquidity, and security) by balancing the management of assets and liabilities and avoiding risks that face their work, such as liquidity risks and credit risks, as asset management is concerned with choosing the optimal investment combination for available sources of funds, as the funds are utilized in a variety of ways to reduce risks and obtain profit. Maximizing the bank's profitability is the responsibility of the management, as maximizing profitability is a strategic goal for the bank, and it will contribute to expanding the bank's work and obtaining a larger market share. The research was based on the analysis of banking profitability indicators (income of assets, income of investment) and their impact on profitability. As asset management is the one factor that affects the returns of assets and acquisitions, and, in turn, bank profitability is concerned. Thus, asset management must invest money elaborately and keep risks at bay.