Determinants Affecting the Profitability in Consumer-Banking

Abstract

The study attempted to analyze the structure and performance of consumer-financing by commercial banks in Pakistan. This study covers the determinants affecting the profitability in consumer-banking of Bank Alfalah, Askari Commercial Bank, Muslim Commercial Bank and Habib Bank Limited. The data used in this project is Secondary and taken from the annual reports of Banks. This project holds relative analysis of banks by considering profit as dependent variable and cost, return on assets, return on equity and sales as independent variables. After studying & implementing graphical analysis and correlation analysis, researcher has found that ROE & ROA have strong relationship with profit while Sales & cost have weak relationship. Although profit depends on these independent variables; yet the researcher has recognized, there are certain other factors that are affecting the profitability of the four banks. The study is absolutely research based that will provide banks to efficiently utilize their resources.