comparison of banks in pakistan as per their market share

8/10/2019 Comparison of Banks in Pakistan as per their market share

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Syed Waqar Hassan

Farrukh Arif .M

Imran Sadiq


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INTRODUCTION

Financial Sector in Pakistan possesses a wide spectrum of financial institutions - Commercial

banks, specialized banks, national savings schemes, insurance companies, development

finance institutions, investment banks, stock exchanges, corporate brokerage houses, leasing

companies, discount houses, micro-finance institutions and Islamic banks !he" offer a whole

range of products and services both on the assets and liabilities side

Banks

#anks are financial intermediaries !he role of a financial intermediar" is to sell its own

obligations and to bu" the obligations of others #" endowing its obligations with attractive

features, an intermediar" can sell its obligations at a higher price than it has to pa" for the

obligations it bu"s !he spread between the interest rate it pa"s on its own obligations and the

one it receives on the obligations of other expenses of doing business must then be deducted!he net profit after these other deductions represents the return to the shareholders for their

participation in the activit" of a financial intermediar"

$#ank is an institution transacting the business of accepting, for the purpose of lending or

investment, of deposits of mone" from the public, repa"able on demand or otherwise, and

withdraw able b" che%ue, draft order or otherwise and includes an" post office saving bank$

!here are different kinds of banks, ie central bank, commercial banks, exchange banks,

industrial banks, etc but for our purpose it will suffice to consider onl" central and commercial

banksCentral Banking

& central bank is responsible for the monetar" polic" of the countr" in which it operates $Central

bank is an institution which is responsible for safeguarding the financial stabilit" of the countr" It

holds the ultimate reserves of the nation, controls the flow of purchasing power, whether in form

of credit or currenc" and it acts as bankers to the state

!he #anking sector is an integral part of the countr"'s financial services industr" !he sector

witnessed a phenomenal growth in ())*-)+ where deposits rose b" almost *)) !here are +

scheduled banks .including ** foreign banks/ operating in Pakistan In the financial "ear of

())0-)1, the banking sector experienced growth rates of (* and +2 in its deposit and

advances portfolio respectivel", which in turn, has increased the banks' stabilit" as compared to

the preceding "ear


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ANALYSIS OF THE MARKET SHARE OF PAKISTAN BANKS AS OF SEPTEMBER 2!

3ational bank of Pakistan is the largest bank in terms of asset, deposits and e%uit"

4igh proportion of low cost deposits as given rise to favorable funding costs and high netinterest margin

4abib #ank 5td .4#5/ has a dominant domestic presence being the largest bank in the countr"in terms of advances and branch network In terms of deposits, assets and e%uit", it standssecond onl" to 3ational #ank of Pakistan .3#P/ In an industr" where size does matter, 4#5'ssize is expected to be a big advantage 5ow costs deposit base due to extensive branchnetwork is a ke" advantage

6nited #ank 5imited .6#5/ is Pakistan's third largest bank in terms of assets as well asdeposits Post privatization in ())(, the bank has revamped its strateg" and emerged as astrong market pla"er in both corporate and consumer segments

#ank &lfalah 5imited .#&F5/ is Pakistan's fifth largest bank in terms of assets as well asdeposits It has been the fastest growth stor" in the industr" #&F5 has shown excellent asset%ualit", sufficient capital levels and good profitabilit"

Comparing the foreign banks, Standard Chartered #ank stands out at *stwith its highest assets,deposits and e%uit"


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COMPARISON" CLASSIFICATIONOFBANKSOPERATIN#INPAKISTANONTHEBASISOF

ASSETS$ DEPOSITS" E%UITY

Na&e '( Bank AssetsPRs &n

De)'sitsPRs &n

E*+it,PRs &n

Nati'nal Bank '( PakistanN+&-er '( Bran./es

Nati'n 0i1e 345!625$572 4!8$282 72$628

Ha-i- Bank Li&ite1N+&-er '( Bran./es

Nati'n 0i1e 34538$!96 433$246 49$677

Unite1 Bank Li&ite1N+&-er '( Bran./es

Nati'n 0i1e 3568!!$399 8!$65 29$9

Bank Al(ala/ Li&ite1N+&-er '( Bran./esNati'n 0i1e 23

263$477 234$!48 3$958

7arket Share as of 8une ()*)Source9 S#P


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St'.kPKR

Ret+rn Si:e Al)/a Beta Di;E Pa,'+trati'

B>M C?PKR@&n

BAFL 1( *:0 59.4 0.05 1.18 8.21 32.4 0.00 1.84 *+,*0):;

UBL 1:0 *( 1. 0.05 1.20 5.5 !.80 "" 1.83 :*,()11

HBL *)0(* *(( !9.0 0.05 0.00 5.1! .02 "" !.92 *)1,;;:)

NBP 21;0 )+ !2.5 0.05 1.34 9.08 4.58 10.22 1.50 ;;,;2:;*

ABL 1:1: )*0 !5.8 0.05 1.05 !.51 9.33 51.80 2.33

01,;:)(*

Se.t'r 57

comparison of banks in pakistan as per their market share

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