A Comparison of Financial Performance of Banking Industry in Pakistan

Abstract

The basic idea of this study is to evaluate the financial performance of banking industry in Pakistan from 2009 to 2013. The reason for choosing this period is to evaluate the finance performance of banking industry after the end of military regime in Pakistan and revolutionary change in banking. For this purpose entire banking industry is divided into four sectors, public commercial banks, private commercial banks, specialized banks and foreign banks. The average growth and return on total assets, total fixed assets, total operational assets and total shareholders’ equity were used to assess the performance of each banking sector which indicates that how banks used their assets and equity to increase their performance. The study guide that banks having more total assets , total fixed assets, total operational assets and total equity have better financial performance or not, It does not mean that banking sector having large fixed asset, operational assets and large equity have better financial  performance than others.

Keywords: Assets, Equity, Returns, Growth, Performance, Assessment