The Banking Sector in Pakistan. Internal Determinants of Commercial Banks' Profitability

Academic Paper , 2014 , 45 Pages , Grade: 2.92

Economics - Finance

This study focuses on internal factors and how they are affecting the profitability of banks in Pakistan. The report seeks answer to the following research problems: Which internal determinants are affecting the commercial banks’ profitability in Pakistan? And: How are these internal determinants affecting the commercial banks' profitability in Pakistan?

To analyze the internal determinants affecting the profitability of 14 commercial banks of Pakistan, the study is based on available data over the period of 2007 to 2012 and aims to recognize major determinants of profitability.

Inhaltsverzeichnis (Table of Contents)

• Chapter: Introduction
  • 1.1.
    • 1.1.1.
  • 1.2.
  • 1.3. Research Question:.
  • 1.4.
  • 1.5.
  • 1.6.
  • Limitations of the Study:.
• Chapter: Literature Review
  • 2.1. Profitability Measure (ROE):
  • 2.2. Size:
  • 2.3. Loans:
  • 2.4. Deposits:
  • 2.5. Equity:
  • 2.6. Net Interest Income:
  • 2.7. Hypothesis:
• Chapter: Methodology..
• Chapter: Results
  • 4.1.
  • 4.2.
  • 4.3. Regression Analysis.
    • 4.3.1. Co-Efficient:-
    • 4.3.2. ANOVAb
• Chapter: Discussion.....
  • 5.1. H1: Total Assets (Size) have significant affect on return on equity (ROE):
  • 5.2. H2: Banks are negatively affected by Asset Quality (loans) on their return on equity (ROE):
  • 5.3. H3: Banks are negatively affected by Liquidity (deposits) on their return on equity (ROE):
  • 5.4. H4: Banks are negatively affected by Capital Adequacy (equity) on their return on equity (ROE):
  • 5.5. H5: Banks are positively affected by Earning Ability (net interest income) on their return on equity (ROE):..
  • 5.6. Conclusion:..
  • 5.7. Recommendations: .
  • 5.8. Future Implications: .

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This study investigates the factors influencing profitability in the Pakistani banking sector. The research aims to identify and analyze the relationship between key financial variables, such as asset size, asset quality, liquidity, capital adequacy, and earning ability, and their impact on bank profitability, measured by return on equity (ROE). The study utilizes empirical data and statistical analysis to draw conclusions about the determinants of profitability in the Pakistani banking context.

• Factors Affecting Bank Profitability in Pakistan
• The Impact of Financial Variables on Return on Equity (ROE)
• Empirical Analysis of Determinants of Bank Profitability
• Comparative Analysis of Profitability Drivers in the Pakistani Banking Sector
• The Role of Financial Regulations and Macroeconomic Factors on Bank Performance

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction This chapter provides a background on the importance of the banking sector in economic and financial development, focusing specifically on the Pakistani banking structure. It highlights the significance of profitability in banking and sets the stage for the study by outlining the research problem, objectives, and research questions.
• Chapter 2: Literature Review This chapter presents a comprehensive review of existing literature related to the factors influencing bank profitability. It examines various theoretical and empirical studies that have investigated the impact of key financial variables, such as size, asset quality, liquidity, capital adequacy, and earning ability, on bank profitability.
• Chapter 3: Methodology This chapter outlines the research methodology employed in the study, including the population, sample size, sampling technique, data collection methods, and data analysis techniques. It provides a detailed description of the theoretical framework and model used to analyze the relationships between the variables.
• Chapter 4: Results This chapter presents the empirical results of the study, including the model summary, correlation analysis, and regression analysis. It provides insights into the relationships between the key financial variables and bank profitability, as measured by return on equity (ROE).
• Chapter 5: Discussion This chapter discusses the implications of the empirical findings, analyzing the significance of each identified relationship between financial variables and bank profitability. It provides a detailed interpretation of the results, drawing conclusions about the key drivers of profitability in the Pakistani banking sector.

Schlüsselwörter (Keywords)

The key concepts explored in this study include bank profitability, return on equity (ROE), financial variables, asset size, asset quality, liquidity, capital adequacy, earning ability, Pakistani banking sector, empirical analysis, regression analysis, and financial regulations. The study delves into the complex interplay of these factors to understand the determinants of profitability in the Pakistani banking context.

• Grade: 2.92
• Author: Saira Anis (Author)
• Publication Year: 2014
• Pages: 45
• Catalog Number: V375955
• ISBN (eBook): 9783668535909
• ISBN (Book): 9783668535916
• Language: English
• Tags: banking, sector, pakistan, internal, determinants, commercial, banks, profitability