Financial Performance of Public and Private Banks in Pakistan: A Comparative Analysis

Abstract

Commercial banks are major components of financial sector and take part in the growth of economy. In Pakistan, both public and private banks are dealing the financial matters as per their capacity and nature of functioning. The purpose of this research work is to analyze the financial performance of public banks and private banks in Pakistan during the period 2006-2011. Bank size and financial ratio are taken as variables such as efficiency /profitability ratio, capital /leverage ratio, liquidity ratio and asset quality ratios. Study concludes that ranking of banks differ as the financial ratio changes.

Keywords: Financial Performance, Public, Private, Banks, Pakistan

JEL Classification: E44, G15, P47