Liquidity Deployment and Income Composition at Libya’s Yaqeen Bank

Abstract

This study examines resource deployment, income composition and profitability at Libya’s Yaqeen Bank. It uses five annual observations for 2020–2024, extracted from financial statements and their notes, with the 2019 closing asset balance used to calculate average assets. The design combines a financial case study, ratio analysis, harmonised definitions and an accounting decomposition of profit changes. Book cash and bank balances declined from 95.94% to 76.42% of assets, although available disclosures cannot establish freely deployable liquidity. Murabaha cost increased from 2.87% of assets in 2023 to 3.75% in 2024; contraction of the asset denominator accounted for approximately 98.3% of this arithmetic increase. The direct financing and investment revenue line represented 5.37% of total revenue in 2024, alongside a net loss of LYD 4.986 million. A profit bridge shows that the decline in the harmonised services line exceeded the benefit of lower expenses. The contribution is a traceable financial interpretation of the business model that separates customer financing from interbank placements and relates ratios to balance levels and income sources. The study recommends consistent disclosures of restricted balances, financing and income sources. Findings are descriptive, institution-specific and non-causal