A COMPARATIVE FINANCIAL RATIO ANALYSIS OF NBP AND UBL and PROFITABILITY IMPACTS ON EPS

Abstract

This report aims at the analyzing the “A comparative financial ratio of NBP and UBL and profitability impacts on EPS”. I have an opportunity to conduct the research project as a part of my Master in Business Administration Course about the topic mentioned earlier. The word bank is originally derived from banc; it is German word, which means a joint stock firm. A different person considers a bank is place, where money flows. According to Money, Today’s bank becomes fast and globalize. It has extended its network all over the world and understands the global customer need, and using latest information technology system, now banks turn down from domestic banking to investment banking. It is assumed that commercial bank are considering permanent of all economic development. The UBL is considered to be populous name in Pakistan. The UBL name gives guarantee of service, efficiency in performance, and efficacy in profit. It promises to provide unique financial services to consumer. That uniqueness gives credibility and assurance of best quality services. Shareholder, Top Management, and competitors use all ratio information. These ratios inform about performance of bank industry. By the help of ratio, we can forecast. According to Eugene F. Brigham, Joel F. Houston, Fundamental of Financial Management, Edition No. 3rd, Chapter No. 3 Analysis of Financial Statement, Page No. 88, Line No. 1 “Maximize Stock price is primitive object of management any firm such as profitability margin and EPS (Earning Per Share). Profitability Margin indicates company performance, stability, and firm operational work in specific period. However, EPS (Earning per Share) is taken from profitability, which shows how much profit distributes among shareholders. The finance analyst does understand, evaluate data, planning, forecasting for benefits of stockholders. The financial ratio assists the financial manger understanding how firms operation changes. To evaluate the efficacy of good bank through its assets management, liabilities, and possible profitability, it will not be wrong to says that the bank operates with its good portfolio management