DefinePK

Abstract

The central theme of this study is to examine the profitability and comparison between the public and private sector banks. For this purpose, bank-specific variables are taken (size, capital, advance, deposits) and macroeconomic variables, such as GDP, as these factors affected banks' profitability in Pakistan from 2009 to 2013. For measuring the banks’ profitability, ROA and ROE were used. In this study, we tested that the profitability of private banks is higher than that of public banks in terms of ROA and ROE. The data was collected from the state bank of Pakistan’s financial statements. A total of ten banks were selected, five from each public and private sector.