2015

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Financial performance of public & private sector banks of Pakistan
(UMT, Lahore, 2015-11) Maham Ijaz Abdullah Imtiaz
This study empirically tries to find out the effect of bank specific factors on banks performance of Pakistani banks and how their performance is different from each other? To achieve this purpose the panel data of 19 (15 private & 4 National Commercial ) banks have been selected as a sample form the year ended 2009 – 2014 on quarterly bases by applying one of the most important technique GMM estimation approach proposed by Arellano and Bond (1991) using E views. The bank specific variables included net NIM, DTAR, CTIR, CAR, SIZE and ATDR. ROA and ROE were used as profitability measures. The results concluded that overall performance of private commercial banks is better than national banks. The earning (NIM), operational efficiency (CTIR) and liquidity ratio (ATDR) are positively correlated with banks profitability (ROA, ROE) in both national and private banks of Pakistan. The DTAR shows negative relationship with the banks (National and private) profitability but in case of national banks the relationship is strong. In all models the capital (CAR) and Size have significant negative effect on banks profitability. The negative relationship between CAR and profitably of the banks shows the risker position of the banks.