An Empirical Analysis of Financial Performance of Conventional Banking Sector in Islamic Republic of Pakistan

An Empirical Analysis of Financial Performance of Conventional Banking Sector in Islamic Republic of Pakistan

Shaheera Noman

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Syeda Shabih Fatima

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Rachel Shahlal

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Quaid-i-Azam University

An Empirical Analysis of Financial Performance of Conventional Banking Sector in Islamic Republic of Pakistan

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Abstract

This study is focused on investigating the collision of leverage and liquidity on banks’ profitability of the conventional banking sector of Pakistan. The major indicators of the financial performance of corporate entities are liquidity, leverage and profitability. Two independent variables i.e. leverage and liquidity were taken into consideration to find out the impact on dependent variable, i.e. bank’s profitability. The sample chosen for this certain study is the three famous Pakistani conventional banks. The 10 years data was collected from the “Annual Reports and Accounts” of the 3 banks, i.e. Faysal Bank, Alfalah and MCB. Regression, correlation and tstatistics are used for the examination of hypothesis. The research results states that liquidity is insignificantly positively related with profitability and leverage is significantly negatively correlated with profitability. Focusing on liquidity and profitability will help banks to enhance their growth.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

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How to Cite This Article

Shaheera Noman. 2016. \u201cAn Empirical Analysis of Financial Performance of Conventional Banking Sector in Islamic Republic of Pakistan\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 16 (GJMBR Volume 16 Issue C2): .

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GJMBR Volume 16 Issue C2
Pg. 45- 56

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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Classification

GJMBR-C Classification: JEL Code: G24, F65

Submission ReceivedDecember 11, 2015
Peer Review Double Blind
Handling Editor
Accepted January 3, 2016
Published January 15, 2016

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v1.2

Issue date

March 16, 2016

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Article Matrices

Total Score: 103

Country: Pakistan

Subject: Global Journal of Management and Business Research - C: Finance

Authors: Shaheera Noman, Syeda Shabih Fatima, Rachel Shahlal (PhD/Dr. count: 0)

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Publish Date: 2016 03, Wed

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