Financial and Banking Strategic Studies

Evaluation and ranking of Iranian banks based on financial performance indicators using the BWM-RAPS approach

Authors

Yeganeh Sadat Rahmati Jirandeh 1
Habib Alijani 2

1 Department of Industrial Management, Performance Orientation, Karaj Azad University, Karaj, Iran.

2 Department of Research Center, Shiroud Municipality, Mazandaran, Iran.

https://doi.org/10.22105/fbs.2025.235226
Abstract
Purpose: This study aims to evaluate and rank the financial performance of banks listed on the Tehran Stock Exchange using a combined BWM–RAPS approach. Given the key role of banks in the capital market, this study is necessary to provide a scientific and reliable framework for decision-making by investors and analysts. This research seeks to provide the most appropriate method for ranking banks based on financial ratios.
Methodology: The present study employs a quantitative and descriptive–analytical approach and examines 5 criteria and 19 financial sub-criteria over the period from 2008 to 2021. The criteria were weighted using the BWM method based on the opinions of 10 expert specialists, and these weights were then applied to the TOPSIS, VIKOR, and RAPS techniques for ranking the banks. The data were calculated and analyzed based on the average financial ratios of the banks.
Findings: The results showed that profitability and efficiency were the most important criteria, with ROA, P/E, and the volume ratio being the most significant sub-criteria. In the final ranking, Parsian Bank ranked first in the TOPSIS and VIKOR methods, while Pasargad Bank ranked first in the RAPS method. Additionally, Shahr Bank exhibited the weakest financial performance across all three methods.
Originality/Value: By integrating BWM and RAPS and comparing them with TOPSIS and VIKOR, this study provides an innovative framework for evaluating bank financial performance. The use of 19 financial ratios and the combination of different MCDM methods distinguish this research from previous studies. Its results can serve as a basis for investor decision-making and for improving banking ranking models in the country.

Keywords

Ranking
Performance
Bank
Subjects
 
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Financial and Banking Strategic Studies
Volume 3, Issue 3
Autumn 2025
Pages 166-190

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