Authors : Hussain Poiamanish; Dr. Neha Parashar

Volume/Issue : Volume 11 - 2026, Issue 4 - April

Google Scholar : https://tinyurl.com/mwvh94et

DOI : https://doi.org/10.38124/ijisrt/26apr766

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Abstract : This study concentrated mainly on analyzing AIB’s financial performance for the period 2020-2024, with an insist on recognizing its strengths, challenges, and strategic opportunities for sustainable growth. AIB demonstrated significant improvements in profitability, liquidity, and solvency, reflecting effective management and conservative risk approaches in Afghanistan’s volatile market and uncertain socio-economic environment. Key findings revealed a consistent upward trend in profitability ratios such as ROA and ROE, indicating better asset utilization and management efficiency. However, despite these gains, the bank’s lending and deposit growth rates showed persistent decline, signaling reduced customer confidence and limited revenue from traditional interest-based activities. Conversely, the bank’s reliance on fee and commission-based income increased, helping to offset the shrinking interest income. Liquidity and solvency ratios improved, with AIB adopting a more conservative stance by lowering leverage and maintaining high liquidity buffers, which enhances resilience against economic uncertainties. Based on these insights, several strategic recommendations were proposed. These include developing targeted lending products to stimulate loan growth, launching aggressive deposit mobilization campaigns, optimizing operational processes to improve efficiency, and refocusing on interest income by cross-selling products. Additionally, continuous monitoring of key performance indicators and risk management strategies is vital to sustain growth and stability. In conclusion, while AIB has demonstrated resilience and positive financial trends, revitalizing its lending and deposit activities is critical for future profitability. Implementing the recommended strategic initiatives will enable AIB to enhance its growth rates, strengthen stakeholder confidence, and build a more resilient foundation for long-term success in Afghanistan’s challenging market environment.

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