Financial Implication of Size, Loan, Deposit and Capital on Banks Profitability the Case Study of Banking sector

Abstract

This study is paying attention mainly on identifying the impact of size, loan, capital and deposit on the banks profitability of Pakistan. This study has measured size, loan, capital and deposit as independent variables. Whereas, bank profitability has been considered as the dependent variable. However, banking sector of Pakistan has been chosen for this study. The major emphasis in this study has been on to check the impact of size, loan, capital and deposit (independent variables) on bank's profitability (dependent variable) in banking sector of Pakistan. Secondary sources of data (annual financial statements) have been used for data collection regarding variables of this study from the period of 20 l 0 - 2019. A sample size of 70 observations has been finalized to represent the entire population (Banks of Pakistan). Collected data has then been analyzed through statistical instruments such as regression by using SPSS software to explore the impact of each variable in this study. Based on the findings, it has been concluded that size, loan, capital and deposit have significant impact on the banks profitability of Pakistan. Finally, it has been proved that change in Size, Loan, deposit and capital brings a definite change in financial performance of Baking sector in Pakistan.