Table 01 and figure 01 are showing the data regarding bank size of public and

Table 01 and figure 01 are showing the data regarding

This preview shows page 3 - 5 out of 9 pages.

Table 01 and figure 01 are showing the data regarding bank size of public and private banks which were working in Pakistan during the period of 2006-2009. Bank size means the total assets of the banks. A lot of difference exist between the total assets of public and private banks due to difference in the number of banks. Table 02: Spread Ratio (%) Bank 2006 2007 2008 2009 Average Public 60.57 53.78 48.28 41.09 50.93 Private 56.71 52.12 48.9 46.07 50.95 Figure 02 50.92 50.93 50.94 50.95 Average (%) Public Private Spread Ratio Table 02 and figure 02 are describing the spread ratio of public and private banks which were working in Pakistan during the period of 2006-2009. It is an income statement ratio and showing the gap between the rates charged on loans and paid on deposits and can be calculated by dividing the total interest earned with total interest paid. There is a minor difference between the spread ratios of both the banks but private banks have high spread ratio than public banks. Table 03: Net Interest Margin Ratio (%) Bank 2006 2007 2008 2009 Average Public 4.23 3.7 3.82 3.48 3.81 Private 4.02 3.91 4.28 4.29 4.13 Figure 03 3.6 3.7 3.8 3.9 4 4.1 4.2 Average (%) Public Private Net Interest Margin Ratio Table 03 and figure 03 are containing the data regarding net interest margin ratio of public and private banks which were working in Pakistan during the period of 2006-2009. It is an income statement ratio and can be calculated by dividing the net interest income with total assets to signify earning capacity of banking sector through core banking activities after utilization of all the assets. Here, private banks have high net interest margin ratio than public banks. Table 04: Return on Equity (%) Bank 2006 2007 2008 2009 Average Public 0.31 0.26 0.06 0.07 0.18 Private 0.21 0.15 0.09 0.09 0.14
Image of page 3

Subscribe to view the full document.

The Special Issue on Humanities and Social Science © Centre for Promoting Ideas, USA 59 Figure 04 0 0.05 0.1 0.15 0.2 Average (%) Public Private Return on Equity (ROE) Table 04 and figure 04 are demonstrating the data related to return on equity (ROE) of public and private banks which were working in Pakistan during the period of 2006-2009. This ratio is a direct measure to know the returns to owners and can be calculated as the percentage of after tax net profit to total owners equity. Here, public banks have high ROE than private banks which means they are paying high returns to owners than private banks. Table 05: Return on Assets (%) Bank 2006 2007 2008 2009 Average Public 2.53 2.3 0.54 0.63 1.50 Private 1.79 1.34 0.82 0.8 1.19 Figure 05 0 0.5 1 1.5 Average (%) Public Private Return on Assets (ROA) Table 05 and figure 05 are displaying the data related to return on assets (ROA) of public and private banks which were working in Pakistan during the period of 2006-2009. This ratio is used to know the earning capacity of profit of a bank by using its assets and can be calculated as the after tax net profit percentage to total assets. Here, public banks have high ROA than private banks which means they are using their assets efficiently than private banks.
Image of page 4
Image of page 5
  • Fall '16

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes