Contents

• 1. EXECUTIVE SUMMARY
• 2. OBJECTIVES & SIGNIFICANCE
• 3. INTRODUCTION
• a. INTRODUCTION TO MUSLIM COMMERCIAL BANK (MCB)
• b. INTRODUCTION TO HABIB BANK (BKEQ)
• c. INTRODUCTION TO ASKARI BANK (ASBK)
• 4. DATA PROCESSING
• 5. IMPORTANCE OF RATIO ANALYSIS (INTRODUCTION)
• 6. PROFITABILITY ANALYSIS
• a. GROSS PROFIT MARGIN
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• b. OPERATING PROFIT MARGIN
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• c. NET PROFIT MARGIN
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• d. RETURN ON ASSETS
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• e. RETURN ON EQUITY
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• f. ASSET UTILIZATION
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• g. NET INTEREST MARGIN
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• h. INTEREST EXPENSE RATIO
• i. CALCULATION & GRAPH
• ii. INTERPRETATION
• 7. CONCLUSION
• 8. RECOMMENDATION
• 9. REFERENCES

Description

The importance of the Banking Sector is known to all, and beyond the shadow of a doubt it is very clear that the health of any Economy is directly correlated to the health of the banking sector. This is clear in the wake of the recent financial crisis, of which the main cause was the failure of the banking sector in some of the developed countries. And as such the importance of the health of the banking sector of a developing country like that of the Pakistan is now even more important.
As such below we do a Profitability Ratio Analysis of three major banks of Pakistan, in order to get a rough picture of the current health and operations of the banking industry via using the proxy of the three Banks under the study.
The main object of the following report is exhaustively calculate the various Profitability ratios of these banks, over a period of five years, to understand the trend of such ratios for each bank. Furthermore we also do a comparative study of these ratios amongst the banks themselves to get a better idea, that which one is better performing bank based on the ratios under consideration.