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ISSN: 2344 - 102X
ISSN-L: 2344 - 102X
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Article from Volume 5, Number 2, Year 2017| IDENTIFYING THE ANTECEDENTS OF PROFITABILITY OF BANKS IN PAKISTAN: A COMPARATIVE ANALYSIS OF CONVENTIONAL AND ISLAMIC BANKS | 
Download | | Author(s): Tooba Asif, Mehwish Shehzad, Abid Shahzad Aslam, Waqas Khan, Abdul Sattar | | DOI: 10.4316/EJAFB.2017.523 | | Abstract: The survival of the banks is mainly based upon profits earned from its loans issued to the general
public. The purpose of this research is to study the impact of nonperforming loans, loan loss
provisions, loan to deposit and size of the bank on the profitability of both Islamic and
conventional banks of Pakistan. Secondary data was used from the annual report of the selected
banks from (2007-2014). Ordinary least square regression was used and results showed that
profitability of conventional banks has negative relationship with non-performing loan and positive
relationship with size of the bank and loan to deposit. On the other hand, the profitability of
Islamic banks showed positive and significant relationship with size of the bank while
nonperforming loans, loan loss provisions and loan to deposits were found insignificant in Islamic
banking sector. | | Keywords: Nonperforming Loan, Loan Loss Provisions, Loan To Deposit, Return On Assets,
Conventional Banks, Islamic Banks, Ordinary Least Square Regression | References:
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