Islamic banking (IB) is a growing industry worldwide. IB refers to a system of banking which is consistent with the principles of Islamic law named Sharia. As an IB, they need to disclose information which is vital in assisting stakeholders in making economic decisions as well as assisting the management. Unfortunately, IB is lacking in terms of disclosing the information which is far below the public expectations and the standards set by the regulators. The purpose of the paper is to examine the effect of Corporate Ethical Identity Disclosure (CEID) in the annual report towards the Financial Performance (FP) of IBs in Malaysia and Arabian Gulf Region. This study was conducted on 120 banks-years. The scope of study used was the IBs in Malaysia and the Arabian Gulf region over five years starting from 2012 until 2016. Moreover, the study has used secondary data which was derived from the contents of the annual report. The independent variables of this study consisted of eight dimensions of CEID namely vision and mission statements; board of directors and top management; products; zakat, charity and benevolent loans; commitment to employees; commitment to debtors; commitment to community and Sharia supervisory board. These eight dimensions of CEID were measured by using the Ethical Identity Index (EII). Meanwhile, the FP was the dependent variable of this study and it was measured by Return of Asset (ROA). The empirical result showed that the products and services are the positive significant and also the most influential dimension in CEID. However, there were some limitations which were required in doing this study such as the limitations of sample size, scope of study, variable uses and medium to collect the data.
