Analysis of Profitability of Banks; Comparatives Study of Domestic and Foreign Banks in Pakistan

Authors

  • Amanullah Parhyar Lecturer, Department of Business Administration, Government College University Hyderabad. Author
  • Muhibullah Nahrio Lecturer, Department of Business Administration Shaheed Benazir Bhutto University, Sanghar Campus. Author
  • Raza Ali Tunio Lecturer, Department of Business Administration, Government College University Hyderabad. Author
  • Waqar Ahmed Sethar Lecturer, Institute of Science, Technology and Development, Mehran University of Engineering and Technology, Jamshoro. Author

Keywords:

return on assets, equity to total assets, deposits to total assets, loan to total assets

Abstract

This study was conducted to observe the determinants of profitability among domestic banks and foreign banks, owned organizations listed in Pakistan, whatever the analysis which dependents variable return on assets, others independent variables equity assets, deposit to total assets and loans to total assets which are the measured with annual financial statements reports of bank's organizations. The research aimed among the domestic banks as well as foreign banks, sampling of data is based on the availability of data, annual  financial statements of the bank's listed companies, because reliability and availability of data source are selected, such as data is analyzed by using descriptive and multivariate statistical techniques containing descriptive correlation and regression model techniques. According to the results abstracted from analysis, equity to assets have a negative relationship with return on assets in term of both foreign banks and domestic banks, while the loan to assets and deposit to assets have a positive relationship with return on assets with a high significance level, while these variables have same sought of relationship with lowest significance level. That’s why the hypotheses related to the foreign banks are accepted and the hypotheses related to the domestic banks may be challenged. From this study, we have conducted recommendations to enterprises as well as executives banking sector of Pakistan. Financial statements through return assets increase their profitability; banks should decrease the level of baking kinds of loans. The interest rate of domestic and foreign banks is high level, difficult for a customer who took a loan from that organization.

https://doi.org/10.5281/zenodo.10351633

References

AHMAD, A. (2009). a comprative study of islamic banking in pakistan. proposing and testinf model.

F, b. J. (2002). theory and praqctices . tata mcgraw hill publishing company limited new delhi.

H.KAZMI, S. (1999). FOREIGN BANKS IN PAKISTAN. TIME TO REDEFINE THE STRATEGIES.

Hamidah Ramlan, M. S. (2015). the profitability of islamic and conventional bank. 7th international economics and business management conference, 1.

havrylchyk, o. (2003). efficiency of polish industry. PROFITABILTI IN FOREIGN BANKS.

Havrylchyk, O. (n.d.). foreign versus domestic banks. efficiency of the polish banking industry, 1.

Hermes, n. (2004). foreign banks presence financial development . in jounal of emerging market finance, 1.

husain, i. (2005). banking sector reforms in pakistan. the business people magazne, 1.

I, H. (2007). the islamization of economy and development of islamic banking in pakistan. kyoto bulletin of islamic area studies, 1.

J., a. R. (1999). relationship marketing in private banking in south africa,. the international jurnal of mareting, 1.

kaufman. (1965). bank market struture and performance. the evidence from io.

kenton, w. (2019). corporate finance and accounting financial ratio. wisdom of fantastic communitry of investor, 1.

khan, M. Y. (2003). text and problems . hill publishing company limited, 1.

Kinney, l. g. (2000). foreign and domestic bak participation in emerging markets. national bereau of economuc research , 2.

lENSINK, R. (2004). DOMESTIC BANKS PERFORMANCE AND DEVELOPMENT . journal of emerging market , 1.

machowics, D. C. (2005). fundamental of financial management . perason education indian branch delhi .

murthy. (1961). INTRODUCTION TO BUSINESS FINANCE. vakils feller and simons hill ,new york.

mwangi, m. (2015). the effect of deposit to asset ratio on the financial substanbility of deposit taking micro finance institution in kenya. international journal of economics and management.

nelson, t. (1970). management accounting. macmilan, new york.

Pandey, I. (1993). financal management. an analytical and coceptual approach, chaitianya publishing house.

S, m. F. (2006). evoluation of foreign banking. jounal of banking and finance.

saif, a. A. (2010). islamic banking experience of pakistan. international journal of business and management, 1.

siddiqui, s. (2012). foreign and domestic bank's profitablity and differences and their dieterminants. International Journal of Economics and Financial Issues.

staff, m. f. (2016). what is equity to asset ratio. wisdom of fantastic community of investors, 1.

sufian, f. (2005). the eficiencyb of the islamic banking industry in malaysia. international association for islamic economics , 2.

T.K, e. S. (2001). islamic banking in brunei darussalam. international journal social economics.

tesfaye, b. (2017). assessments of banks. the case of united bank, 1.

thornton, j. (1992). determinants of european bank profitabilty. international monetory fund wishington DC, USA.

tolt, e. d. (2007). return on equity, a popular, but flawd measure of corporste financial performance. south african journal ofd business management.

zaidi. (1987). ELIMINATION INTERST FROM BANKS IN PAKISTANN. KARACHI ROYAL BOOK COMPANY.

AHMAD, A. (2009). a comprative study of islamic banking in pakistan. proposing and testinf model.

F, b. J. (2002). theory and praqctices . tata mcgraw hill publishing company limited new delhi.

H.KAZMI, S. (1999). FOREIGN BANKS IN PAKISTAN. TIME TO REDEFINE THE STRATEGIES.

Hamidah Ramlan, M. S. (2015). the profitability of islamic and conventional bank. 7th international economics and business management conference, 1.

havrylchyk, o. (2003). efficiency of polish industry. PROFITABILTI IN FOREIGN BANKS.

Havrylchyk, O. (n.d.). foreign versus domestic banks. efficiency of the polish banking industry, 1.

Hermes, n. (2004). foreign banks presence financial development . in jounal of emerging market finance, 1.

husain, i. (2005). banking sector reforms in pakistan. the business people magazne, 1.

I, H. (2007). the islamization of economy and development of islamic banking in pakistan. kyoto bulletin of islamic area studies, 1.

J., a. R. (1999). relationship marketing in private banking in south africa,. the international jurnal of mareting, 1.

kaufman. (1965). bank market struture and performance. the evidence from io.

kenton, w. (2019). corporate finance and accounting financial ratio. wisdom of fantastic communitry of investor, 1.

khan, M. Y. (2003). text and problems . hill publishing company limited, 1.

Kinney, l. g. (2000). foreign and domestic bak participation in emerging markets. national bereau of economuc research , 2.

lENSINK, R. (2004). DOMESTIC BANKS PERFORMANCE AND DEVELOPMENT . journal of emerging market , 1.

machowics, D. C. (2005). fundamental of financial management . perason education indian branch delhi .

murthy. (1961). INTRODUCTION TO BUSINESS FINANCE. vakils feller and simons hill ,new york.

mwangi, m. (2015). the effect of deposit to asset ratio on the financial substanbility of deposit taking micro finance institution in kenya. international journal of economics and management.

nelson, t. (1970). management accounting. macmilan, new york.

Pandey, I. (1993). financal management. an analytical and coceptual approach, chaitianya publishing house.

S, m. F. (2006). evoluation of foreign banking. jounal of banking and finance.

saif, a. A. (2010). islamic banking experience of pakistan. international journal of business and management, 1.

siddiqui, s. (2012). foreign and domestic bank's profitablity and differences and their dieterminants. International Journal of Economics and Financial Issues.

staff, m. f. (2016). what is equity to asset ratio. wisdom of fantastic community of investors, 1.

sufian, f. (2005). the eficiencyb of the islamic banking industry in malaysia. international association for islamic economics , 2.

T.K, e. S. (2001). islamic banking in brunei darussalam. international journal social economics .

tesfaye, b. (2017). assessments of banks. the case of united bank, 1.

thornton, j. (1992). determinants of european bank profitabilty. international monetory fund wishington DC, USA.

tolt, e. d. (2007). return on equity, a popular, but flawd measure of corporste financial performance. south african journal ofd business management.

zaidi. (1987). ELIMINATION INTERST FROM BANKS IN PAKISTANN. KARACHI ROYAL BOOK COMPANY.

Downloads

Published

2021-09-30

How to Cite

Analysis of Profitability of Banks; Comparatives Study of Domestic and Foreign Banks in Pakistan. (2021). International Research Journal of Management and Social Sciences, 2(2), 282-299. https://irjmss.com/index.php/irjmss/article/view/149

Similar Articles

1-10 of 34

You may also start an advanced similarity search for this article.