Open AccessFactors Affecting Commercial Banks Profitability in Pakistan
Author(s) -
DR. MUMTAZ HUSSAIN SHAH,
Sajjad Khan
Publication year - 2021
Publication title -
journal of business and tourism
Language(s) - English
Resource type - Journals
eISSN - 2521-0548
pISSN - 2520-0739
DOI - 10.34260/jbt.v3i1.55
Subject(s) - profitability index , return on assets , return on equity , business , panel data , commercial bank , equity (law) , financial system , debt , finance , economics , econometrics , political science , law
Due to significant contribution of commercial banks in the economic progress of Pakistan, this research has been carried out to analyse the possible effect of different relevant factors on the profitability of commercial banks in the country. Profitability is measured by return on assets (ROA). Using pooled regression analysis on yearly data collected from the annual reports for a panel of 14 commercial banks for eight years from 2007 to 2014, it was found that equity to assets, debts to assets, deposits to assets, bank size and assets management have a significant influence on the commercial banks profitability in Pakistan.