Abstract
This research investigates the financial performance of the Islamic banking sectors in Tunisia from year 2010-2014. The Islamic banking in Tunisia is new as compared to the conventional banking. The literature review shows that no such analysis has been dedicated to Islamic banking in Tunisia before this study. Therefore, to give a clear picture of Islamic banks to the stakeholders, the financial position of the two Islamic banks in Tunisia has been analyzed. The Performance estimates of individual banks in profitability, liquidity, risk and solvency are evaluated using the most significant financial ratios analysis. The study assesses also the overall stability of each bank. The descriptive statistical measurements (mean, standard deviation and coefficient of variation) were used to classify the performance, measuring the dispersion and the variability of these ratios. The results indicated that both banks are holding a robust financial performance position in banking industry during the period studied. Whereas al Baraka bank has slightly better levels of profitability and risk management as compared to Zitouna bank. Overall, two Islamic banks are financially stable, however al Baraka bank is in a greatest position than the Zitouna bank in terms of stability.