Islamic Banks vs. Commercial Banks

8/10/2019 Islamic Banks vs. Commercial Banks

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A Study on Islamic Banks vs. Commercial Banks

(Comparative Financial Analysis)

By

M. Mujtaba Hussain Malik 5270-FMS/MBA/F11

Muhammad Waqas Afzal 5263-FMS/MBA/F11

A project report submitted to the Department of Business Administration

(Accounts and finance), faculty of Management Sciences, International Islamic

University Islamabad, in partial fulfillment of the requirement for the degree of

MASTERS OF BUSINESS ADMINISTRATION

(FINANCE)

Department of Business Administration(Accounts and finance)

Faculty of Management Sciences


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International Islamic University Islamabad

A Study on Islamic Banks vs. Commercial Banks

(Comparative Financial Analysis)

By

M. Mujtaba Hussain Malik 5270-FMS/MBA/F11

Muhammad Waqas Afzal 5263-FMS/MBA/F11

MASTERS OF BUSINESS ADMINISTRATION

(FINANCE)

Submitted To

Sir.Waqas Ahmad

Lecturer

Department of Business Administration (Accounts and finance)



June 2014


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Copyright 2013 by Mr. Mujtaba Hussain& Mr. Waqas Afzal.

All rights are reserved. No part of this Research Paper can be reproduced in any

form or any means such as photocopy or electronic media etc. without prior

approval of authors.


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Supervisors Certificate

This is certified that Mr. M. Mujtaba Hussain Malik 5270-FMS/MBA/F11 and

Mr. Muhammad Waqas Afzal 5263-FMS/MBA/F11 of MBA-26 have completed

their project report entitled A Study on Islamic Banks vs. Commercial Banks

under my supervision. I have checked this report and found it bonafide work of

authors.

__________________

Waqas Ahmad

SUPERVISOR

Lecturer

______________________

Dr. Zulfiqar Ali Shah

Head, Department of Accounting & Finance




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Table of contents

1. INTRODUCTION___________________________________________01

1.1.Executive summary01

1.2.Banking History..02

1.2.1.Kinds of Modern Banks..........03

1.2.2. International Monetary Fund....05

1.3.Islamic banking......................06

1.4.

Islamic banking in Pakistan......071.5.Products Offered By Islamic Banks08

1.6.Objectives of the study..12

1.7.Methodology...13

2. OVERVIEW_______________________________________________14

2.1.Business Size...14

2.2.Analysis of Growth patter.15

2.2.1.Total Assets And Growth In Total Assets..16

2.2.2.

Equity And Growth In Equity....18

2.2.3.Deposits And Growth In Deposits.....20

2.2.4.Advances And Growth In Advances.22

2.2.5.Revenues And Growth In Revenues.24

3. RATIS ANALYSIS 26

3.1.1.Return On Equity...26

3.1.2.Return On Asset 28

3.1.3.

Deposits to total asset ratio....30

3.1.4.Deposits to Equity.....32

3.1.5.Capital ratio...34

3.1.6.Earnings per share.35


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List of Graphs

Graph 1 Total Assets comparison.26

Graph 2 Equity comparison..28

Graph 3 Deposits..............................................................................................30

Graph 4 Advaces..32

Graph 5 Revenues....34

Graph 6 Ratios.. ..40


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List of tables

Table 1.01 List Of Selected Banks For Analysis.10

Table 2.01 Comparisons of branches and expansion.12

Table 2.02 The Comparison of Total Assets.13

Table 2.03 Growth Rates of Total Assets. .14

Table 2.04 Comparison Of Equity15

Table 2.05 Growth In Equity15

Table 2.06 Comparison Of Deposits.17

Table 2.07 Growth In Deposits..17

Table 2.08Comparison Of Advances.19

Table 2.09Growth in Advances.19

Table 2.10 Comparison Of Revenues20

Table 2.11 Growth In Revenues20

Table 3.03 Return On Equity.24

Table 3.04 Return On Asset...25

Table 3.06 Investment to asset ratio..27

Table 3.07 Deposits to asset ratio.28

Table 3.07 Deposit to equity ratio.29


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Table 3.09 Capital ratio.30

Table 3.10 Earnings per share..31

Table 3.13 Price earnings ratio.34

Table 3.14 Loan deposit ratio...35

Table 4.02Degree of Operating Leverage38

Table 4.03Degree of Financial Leverage.39


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1.

INTRODUCTION

1.1. EXECUTIVE SUMMARY

The Islamic banking is said to growing very fast in these days. Some sources say

Islamic banking is going to become the equal competitor of Conventional banking

in next a few years. It must be examined that the claim is really true or not. There

are a variety of financial tools that measure the financial performance and growth

of an organization. These tools can be applied to acquire better insight of these

industries. This study examines the financial growth and performance through

applying these financial tools. The top performing banks from both industries are

chosen for analysis purpose.

In the first section the brief history of Conventional banking is discussed and then

short account of history of Islamic banking is provided. The evolution of Islamic

banking in Pakistan is also described. The second section shows a closer view of

the growth pattern of Islamic banks as compared to Conventional banks. The third

section is based on financial analysis and comparison of financial performance.

Fourth and fifth sections are analyzed through investor`s point of view. Finally it

is concluded that the claim about growth of Islamic banking is true or not.


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1.2. BANKING HISTORY

Basically according to the given records banking was started approximately 1800

B.C. In its early stage it was started as prototype banks of merchant, which used

to give loans to farmers and traders. This was under practice in Egypt, Babylon,

Roman Empire and Greece where these the temples used to practice this kind of

banking to approve and issue the loans accept the deposits and was acting as

money changer. Precious metals were pledged against loans which were issued to

the borrowers. These loans were issued on high rates of interest, with the passage

of time old banking techniques were modified in to modern banking by the Greek,

Roam and Jews.The roots of modern banking techniques go to1

stCentral Bank of U.K which was

formed to advance the loans to the government and become a model for most

modern central banks. A point should not be forgotten that on the other side The

Bank of Amsterdam was formed in 17th

century to accept the deposits. During

18th

and 19th

century development in different business sectors resulted

development in banking sector as well. After words in 20th

century development

in I.T sector brought major changes in banking operations due to which there was

considerable changes were noticed in the size and geographic spread.

In the most modern era of banking and finance there are multiple types of banks

which are operating for the different purposes.


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1.2.1.Kinds of Modern banks

Central Bank

It is a type of bank owned by the government which regulates the currency of the

country and takes all the important decisions related to the economy of the

country. It also makes all the rules and regulations about the Conventional banks.

1. Commercial banks:

Commercial bank deals with the deposits and loans with individuals as well as

corporations. Economic development is mainly based on role of These banks

because they provide different kinds of services to the individual like the basic

facility of savings, granting loans and time deposits. These banks have to maintaina specific amount of reserves.

2. Mutual savings bank:

This is a type of financial institution, regulated by central government without

capital stock, owned by the members who create a common fund. Profits are

distributed between these members. The institution provides a place where

individual can save and invest in different types of securities.

3.

Investment Bank

These banks have basic purposes of providing facility to large organizations and

about the investment across the industry. Advices are provided about investment

and in promotion of corporate transactions

Modern developments in the technology has entirely changed the world and made

it global village due to which global business or multinational companies (MNC)

have come into being and this concept leads to the emergence of global financial

institutions. The development of multinationals definitely requires a kind of

international organization which can facilitate the business activities.


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4. World Bank:

The intention behind the formation of the World Bank was to issue advances tothe investors and to the states as well, further more to enhance the trade and

investment opportunities worldwide. It was established in 1944. World Bank is

the part of the World Bank Group, as well as the member of the United Nations

Development Group.

Now The World Bank's goal is to reduce the poverty. In the beginning it

contained two institutions, International Bank for Reconstruction and

Development and International Development Association from 1944 to 1968, at

that time loans were only issued for the development of income generating

infrastructures, such as development of the seaports of any country, highways and

power generation sectors, because these are the sectors which enables the

countries to repay the debts. But after wards from 1968 to 1980 the bank

expanded its operations from basic infrastructure development to social services

and some other sectors, meanwhile the issuance of loans for the development

purposes rose near about 20% annually. Here the institution adapted few policieswhich were strongly criticized by the UNICEF such as structural adjustment

policies which were designed for the enhancement of the economies of the

developing nations, but UNICEF was having point of view that these policies

were responsible for reduction in the health and education level of young

generation of Asia, Africa and Latin America. Just for this purpose the institution

has been funding to many non-government organizations for social services and

social benefit from 1989 till today and these policies include the protection of the

environment by promoting less harmful development activities such as in 1991 it

made an announcement that it will never finance any development activity in

Amazon forest just for the purpose of protecting the forest.


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1.2.2. International Monetary Fund

It was established in 1945 started by just 29 member countries but this figure hasgone to 188.It was established to facilitate the nations to clear their debts (under

developed countries). It provides suggestions to its members related to

international banking. It has the basic function of enhancing the economic growth

and stability of the underdeveloped countries for this purpose it facilitates them by

providing the funds and suggestions for improving their economic policies.

Before it was performing only two functions i.e. monitoring the exchange rates of

the countries and helping them to manage their exchange rates by providing them

funds to manage their balance of payments (BOP) and it was done to avoid the

international economic crisis. After the Second World War it played the role in

developing the global economy. After floating exchange rates in early 70s it

changed it role and then it started to monitor and evaluate the economic policies

countries seeking loan to judge that weather their policies are capable or notofthe

economic recovery in future and by checking that policies will be helpful in the

reduction of economic crisis or not. Now its role is much more important as it

monitors the economic policies of different countries. It negotiates the policies

and put forward its conditions before issuing the loans to the country in order to

make sure that their present economic policy will be able to recover the economic

condition. It gives the facility to the low income countries by providing them

loans on non interest basis for specific time period through, Extended Credit

Facility (ECF), Standby Credit Facility (SCF) as well as Rapid Credit Facility

(RCF). On the other side it also provides loans on the basis of interest and has

adapted different policies, which includes Stand-By Arrangements (SBA),Flexible Credit Line (FCL), Precautionary and Liquidity Line (PLL), Extended

Fund Facility and Rapid Financing Instrument (RFI). The member countries

economic and financial policies are also monitored by International Monitory


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fund it analyses the economic policy of each member country just to ensure that

whether it is in accordance to its guidelines to achieve the economic growth as

well as toasses its effects on global economy.

1.3.ISLAMIC BANKING

After the hard work of Islamic scholars Islamic banking has been introduced,

abanking which is based on values of Islam, the principles and rules given to us

by Islamic Shariah.MirzaBasheerud din Mehmood Ahmed, MaulanaMaududi and

few other Islamic scholars emphasized on the need of Islamic banks. On the basis

of profit and loss shairing.In the modern era the first Islamic financial institution

was started in 1963 by Ahmed El Najar, in Egyptian town MitGharar. Itdid not

use the name of Islamic banking because of the political regime in the country

will take it as an effort to enforce Islamic fundamentalism. By 1967-1969 there

were many such banks which were running on profit loss sharing bases. They did

not use to work on the basis of interest. The depositors money was invested in

trade and industry directly. The profits or losses was shared between the

depositors and bankitself. During 1970 many Islamic banks were establishing

such as in 1973 Nassir social bank was started in Egypt, 1975 Dubai Islamic bank,

1977 Fasial Islamic bank and 1979 Bahrain Islamic bank.

In 1983 first full-fledged Islamic bank was formed in Malaysia by the name Bank

Islam Malaysia Berhad(BIMB). According to some researchers, Nasir social bank

is the first full-fledged Islamic bank but according to some say Dubai Islamic

bank was the first one. 144 Islamic institutions were established by 1955. Islamic

banking started its break through growth in 2002 and onwards. Now a days

Islamic banking prevails in more than 60countries in which Muslim and non

Muslim countries are included.


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1.4.ISLAMIC BANKING IN PAKISTAN

Pakistan came into existence on 14 August 1947 as the first Islamic republic

created in the name of Islam. Now according to it, it is the duty of state to follow

the instructions of Allah Almighty according to the Objectives Resolution, passed

in 1949. Islam is the official religion of Pakistan and all rules/ regulations should

be in accordance with Islamic injunctions (1956 constitution). In 2001 a meeting

was held under the Chairmanship of the President of Pakistan and the officials of

the related ministries and organizations where it was decided that the shift to

interest free economy would be a gradual process in a phased manner that would

avoid any disruptions. The State Bank of Pakistan issued criteria in 2001 for

establishment of Islamic banks in the private sector. Al Meezan Investment Bank

in 2002 was the 1stbank which got the license. Al Meezan Investment Bank is

now known as Meezan Bank Limited is operating as full fledge Islamic bank.

Meezan Bank is a pioneer of Islamic Banking introduces theMeezan Islamic

Funds (MIF) and the countrys first open end Islamic Mutual Fund. In the year

2004 theConventional banks opened new branches being a part of Islamic

Banking such as Bank Alfalah, Habib Bank and standard chattered etc.SBP has

also given permission and approval to open 10 more branches as an Islamic

Banks. In the year of 2005 for the first time in Pakistan the Islamic Banking

welcomed in new era of Islamic Insurance(Takaful). In 2007 it has been observed

that the Islamic Banking got a remarkable feedback from customers due to the

introduction of short-term, medium-term, long-term categories of product. For the

first time in the history of Islamic Banks Meezan bank offered ijarah financing for

the stock of finished goods. In 2009 different Islamic banks launched the Hajj

and Umrah Packages. The Albarkah Bank also give a support to Pakistani

economy as it expands its branches all over the state. By the year 2010 the Islamic

Banks stood to be the priority by most of the customers.In2013 the bank Dubai


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opened 25 new branches, 40 branchless banking booths and introduced variety of

services such as Banka Takaful, and Cash Management.

The future of Islamic banking is very positive in Pakistan, as during the last forty

years it has made considerable progress. According to Governor State Bank of

Pakistan, in the last five years Islamic banking has shown impressive annual

growth rate.There are more than five hundred branches of Islamic banks in

Pakistan. Meezan Bank, Bank Islami Pakistan, Al barkah Bank and Dubai Islami

Bank are significant in Pakistan.

1.5.PRODUCTS OFFERED BY ISLAMIC BANKS

1.

Current Account

Current Account of Islamic banks provides the facility of putting money in an

interest-free account without any restrictions on withdrawal of the money.

Current Account is based onQardcontract. In this case Bank is liable to pay the

money back on demand to the customer. Bank can use these funds for different

investments. The account gives surety of money safely deposited with a bank

further more assurance that, the Bank is not investing the money in activities

which areagainstShariah principles.

Current Account can be opened by any one from individual to the limited

companies.

2. Saving Account

The riba free saving account provides expected monthly returns as well as

different free benefits.

In this case Mudarabah relationship is made between customer and bank, where

customer becomes an Investor (Rab-ul-Maal) and Bank becomes Manager

(Mudarib) of the fund. The Bank makes a pool of the funds; which is then utilized

for financing to customers in the shape of Murabaha, Ijarah, Istisnaand
http://www.meezanbank.com/AjaxFunction.aspx?id=297&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=297&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=297&width=250http://www.meezanbank.com/rupeeSavingAccount.aspxhttp://www.meezanbank.com/AjaxFunction.aspx?id=205&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=205&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=205&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=205&width=250http://www.meezanbank.com/rupeeSavingAccount.aspxhttp://www.meezanbank.com/AjaxFunction.aspx?id=297&width=250


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Diminishing Musharkah etc. Saving Account can be opened from Individuals to

limited companies.

3.

Foreign Saving Account

Riba-free Saving Account is aMudarabah-based account and helps the investor

to diversify their investment to meet their business needs and to save the

investment against currency fluctuations.

This Account as well can be opened by individuals to Limited Companies.

4. Business Account

Business account is a Mudaraba-based account that allows you to conduct yourbanking transactions while availing a wide range of free services and therefore

provides you the ideal blend of convenience & flexibility that you deserve in

Islamic banking.

Business Account can be opened by Individuals, businesses (Sole Proprietorships,

Partnerships and Limited Companies).

Term Certificates

1.

Certificate of Islamic Investment

The Islamic Investment certificates is a Mudarabah-based deposit product, Where

investment is done from 3 months to 5 years and earnHalalprofit on a periodic

basis.

2. Amdan and monthly Mudarbah Certificate

Both of the certificates areMudarabah-based long-term and short term deposit

product that offers a high expected return to investors and gives monthly expected

returns. It is ideal for individuals and corporate clients who need a regular

monthly income.
http://www.meezanbank.com/EuroSaving.aspxhttp://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/BusinessPlus.aspxhttp://www.meezanbank.com/Deposit_Certificates.aspxhttp://www.meezanbank.com/Deposit_Certificates.aspxhttp://www.meezanbank.com/AjaxFunction.aspx?id=433&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=433&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=433&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/AjaxFunction.aspx?id=433&width=250http://www.meezanbank.com/Deposit_Certificates.aspxhttp://www.meezanbank.com/BusinessPlus.aspxhttp://www.meezanbank.com/AjaxFunction.aspx?id=436&width=250http://www.meezanbank.com/EuroSaving.aspx


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Certificates work on the principle of Mudarabah where Investor (Rab-ul-Maal),

and the Bank is the Manager (Mudarib). The Bank makes pool of funds; funds

from the pool are used to provide financing to customers under Islamic modes of

financing.

3. Foregin Currency Mudaraba Certificate

This Certificate is a deposit product in which investment can be done in foreign

currency, periods ranging from 3 months to 3 years and earn six-monthly or at

maturity profit payments on investment.

This Certificates works on the principle of Mudarabah.

The Mudarabah Certificate is an ideal investment for Individuals, Sole

Proprietorships, Partnerships and Limited Companies.

Others

1. Kafalah/Takaful

A Shariah-compliant alternative to assurance that offers a unique combination of

saving, investment and protection.

It is basically for:- highereducation

- daughter'swedding

-Hajj

- having a comfortableretired life with savings
http://www.bankislami.com.pk/product_services/takaful/http://www.meezanbank.com/docs/illustration%20education.pdfhttp://www.meezanbank.com/docs/illustration%20married.pdfhttp://www.meezanbank.com/docs/illustration%20hajj.pdfhttp://www.meezanbank.com/docs/illustration%20retirement.pdfhttp://www.meezanbank.com/docs/illustration%20retirement.pdfhttp://www.meezanbank.com/docs/illustration%20hajj.pdfhttp://www.meezanbank.com/docs/illustration%20married.pdfhttp://www.meezanbank.com/docs/illustration%20education.pdfhttp://www.bankislami.com.pk/product_services/takaful/


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2. Car Ijhara

Car Ijarah is Interest Free Islamic financing mode of Ijarah (Islamic leasing).

It is based on rental agreement, under which the Bank purchases the car and hand

it over to the custmour on rentbasis for an agreed period, according to the

contract. On the completion of the period the customer gets ownership of the car.

3. Home Finance

Home financing allows a customer to have a home on paying easy installments as

well as by keeping one save from interest base financing.


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1.6.OBJECTIVES OF THE STUDY

Islamic banking is one of the emerging fields of todays world. As on one hand

few new Islamic banks have came into business, on the other hand conventional

banks have started opening Islamic windows. It is being said that Islamic banks in

the near future will be equal and strong competitors of Conventional banks.

The purpose of our study is simply what to apply the financial tools, which we

have learned during our Masters of Business Administration program on both, the

Islamic as well as Conventional banking, for the purpose of knowing where the

Islamic banking is standing today?The ambiguities and the few critics about

Islamic banking and the question about the income of the Islamic windows of the

conventional banks are related to Sharia Advisory Board which is keeping a strict

eye on it. We are more concern with the financial performance of the banking

industry.

The financial tools used in this study are

growth formula

financial statement analysis,

valuation models (capital asset pricing model)

To complete the project we have selected fewConventional banks from

conventional banking industry and few emerging Islamic banks from Islamic

banking industry. The list of selected banks is as follows:

Convention

albanks

Islamicban

ks

Askari Bank Meezan bank limited

Habib bank limited Al-Baraka bank

Standard chartered Burj bank limited

Muslim Commercial bank Dubai Islamic bank

Allied bank limited Bank Islamipakistan


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1.7. METHODOLOGY

Different financial tools are used for financial analysis, in which some are for

internal analysis and some are for external analysis. Our focus is on external

analysis so we will use external analysis tools which consist of growth formula,

financial ratios and capital asset pricing model (CAPM).

The growth formula tells, the increase in the amount in any specific variable,

which it has gained in any specific time period. The formula is as follows:

P.R= (VprVp)*100Vp

P.R = % Rate

Vpr = Current Value

Vp = Previous Value

We will use this formulain order to find out the growth in

BRANCH NETWORK

TOTAL ASSET

TOTAL EQUITY

TOTAL DEPOSITS

TOTAL ADVANCES

TOTAL REVENUES

After averaging all of the growth rates then comparison will be done for Six years

from 2008 to 2013, with graphical representation. Specific ratios for banks are

included which will measure profitability, liquidity, leverage and other financial

indicators of the banks. Risk and return analysis are also incorporated.


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2. OVERVIEW

Here attention will be given on banking industry with its growth pattern.

Comparison of increasing or decreasing trends and the comparative growth of

five conventional banks with five Islamic banks will take place including

comparison of branch networks with study of their assets, equity, deposits,

advances, and revenues.

2.1. BUSINESS SIZE

Business size includes the no. of branches which any particular business has.

Table 2.01Comparison of Branches and Expansion:

From the table one can easily extract out that the branch network of

Conventionalbanksis much higher in numbers then Islamic banks but with the

passage of time the branch network of Islamic banks have shown considerable

growth as compared to the Conventional banks and have decreased the gap,

difference between the no. of branches between them.

When we have applied growth formula, we discover that Conventional banks

have growth rate of 12%while Islamic banks have growth rate 140% in there

branch network during the last six years.

Conventional banks 2008 2013 Islamic banks 2008 2013

Allied bank limited 766 950 BankIslamiPakistan 102 201

Habib bank limited 1508 1547 Al-Baraka bank 30 110

Muslim Commercial bank 1040 1200 Burj bank limited 42 74

Standard chartered ltd 174 116 Dubai Islamic bank 25 124

Askari Bank 160 281 Meezan bank limited 160 351

Total 3648 4094 Total 359 860


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2.2. ANALYSIS OF GROWTH PATTERN

First of all we will have an overview of overall growth patternsofbothbanking

sectors i.e. (Islamic and Conventional). By applying the growth formula we will

find out the increasing, decreasing or stable trends in both of the banking

sectors.The data is collected from the annual reports of the banks. Assessments

are as follows,

2.2.1. Total Assets &their Growth

An asset is a resource, may be tangible or intangible which is being owned and

controlled to produce value.Table 2.02 Comparison Total Assets & their Growth

(All amounts in billion Rupees)

Year2008 2009 2010 2011 2012

2013

Conventional banks 1774 2613 3223 3855 4535 5844

Islamic banks 349 451 693 787 551 636

Year 2008 2009 2010 2011 2012 2013

Conventional banks 12% 47% 23% 20% 18% 22%

Islamic banks 23% 53% 29% 14% 8% 15%


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Graph 1

Graph 2

0

2000

4000

6000

2008 2009 2010 2011 2012 2013

Conventional Bank

Islamic Bank

0%

10%

20%

30%

40%

50%

60%

20082009 2010 2011

20122013

Conventional Bank

Islamic Bank


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banks 408

Islamic banks 25 30 32 37 40 45

Graph 3

Graph 4

0

2

4

2008 2009 20102011

20122013

Conventional Bank

Islamic Bank

0%

10%

20%

30%

2008 2009 20102011

20122013

Conventional Bank

Islamic Bank

Growth In Equity

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 5% 5% 27% 26% 3% 13%

Islamic banks 12% 20% 7% 16% 8% 13%


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Explanation of Graphs & Tables:

Islamic banks are for behind than conventional banks if we see them on the bases

of equity. By putting glance on the growth pattern both of the banks there is bit up

& down in the Islamic banks, but even than they must be appreciated because

there are very new & showing good performance. The performance of

Conventional banks is batter in terms of growth rate as there are fully mature & at

there peak. The difference in both of the sectors may be due to there nature of

bushiness as Islamic banks shares profit & loss while conventional banks take

fixed amount of interest.

2.2.3.Deposits and their Growth:Deposits plays the role of life blood in all of the organization and sectors. In

banking sector specialy deposits increases the worth of that business. All the

investment and generation of revenue all depends upon the amount of deposits

that specific bank has. Table 2.06 shows comparison of deposits in both of the

sectors

Table 2.04 Comparison Deposit & their growth

All amounts are in billion Rs.

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 1867 2090 2338 2694 3000 3300

Islamic banks 281 369 469 571 662 791

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 13% 12% 11% 15% 11% 10%

Islamic banks 24% 31% 27% 22% 16% 20%


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Graph 5

Graph 6


Conventional Bank

0

500

1000

1500

2000

2500

3000

3500

2008 2009 2010 2011 2012 2013

Conventional Bank

Islamic Bank

Conventional Bank

0%

5%

10%

15%

20%

25%

30%35%

2008 2009 2010 2011 2012 2013

Conventional Bank

Islamic Bank


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From the data one can easily say that number of peoples deposits areincreasing in

Islamic banks as compaired to theConventional banks. There can be multiple

reasons in it such as increased awairnes about Islamic banking, their products etc.

The data clearly shows that the growth rate of deposiits in Islamic banks are in

better position thanConventional banks.

2.2.4. Advances and their Growth:

Advance of the banks are completely dependent upon the no of deposits and the

amount available with that specific bank.Advances of conventional banks are on

the basis of loans while Islamic banks does the same thing on the basis of riskshairing and profit shairingi.e.musharakah and mudarbah etc.

Table 2.05 Comparison Advaces & their growth

All amounts are in billion Rs.

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 1336 1491 1302 1232 1158 1456

Islamic banks 189 283 222 282 320 340

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 21% 13% 2% -4% 3% 7%

Islamic banks 21% 8% 22% 8% 9% 10%


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2.2.5 Revenues and their Growth:

Revenues are the back bone of any kind of business, no matter what kind of

business it may be. Now nature of business is very much different of both of the

sectors, therefore there is much difference in their revennu generation. Revenues

of Islamic banks are fluctuating may be due to profit and loss sharing, while

Conventional banks gets the fixed amount i.e. interest.

Table 2.06 Comparison Revenues & their growth

All amounts are in billionRs.

Year 2008 2009 2010 2011 2012 2013Conventional

banks 555 618 564 722 740 860

Islamic banks 107 160 212 334 462 610

Year 2008 2009 2010 2011 2012 2013

Conventional

banks 7% 11% -12% 28% 3% 16%

Islamic banks 76% 49% 33% 58% 38% 32%


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Graph 8

Graph 9


Now from the results it is crystal clear that both of the sectors are showing the

increasing trend but over all Islamic banks are showing nice performance in it as

compaired to fully developed conventional banks.

0

200

400

600

800

1000

20082009

20102011

20122013

Conventional Bank

Islamic Bank

-20%

0%

20%

40%

60%

80%

2008 2009 20102011

20122013

Conventional Bank

Islamic Bank


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3.

Ratio Analysis

A management always planes for the efficient use of resources and for this

purpose Ratio analysis is considered as a powerful tool. The ratios basically tell

about thefinancial results, trends, and key indicators of financial performance.

Company uses these tools to find out where the improvement is required and what

are the strengths and weaknessesof their firm. These ratios are also used by the

outsiders just in order to get information about the company and to comp[iar the

results with the other organizations in order to come on the result where should

they invest.

3.1. Return on Equity

This ratio measures the overall performance of the instition. It is of great

imp[ortance for the shareholders as well as the management of the company. High

ratio is better for the instirtion

ROE= Net Profit after tax

Equity

Table 3.01 Return on Equity

Return On Equity

Year 2008 2009 2010 2011 2012 2013

Allied bank limited 18.98% 26.65% 25.56% 26.16% 26.46% 28%

Habib bank limited 15.32% 16.87% 18.62% 21.30% 19.78% 20.78%

Muslim Conventional

bank

28.43% 24.98% 22.69% 24.82% 22.43% 24.43%


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Graph 9 of averages

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2008 2009 2010

2011 2012 2013

Conventional Bank

Islamic Bank

Standard chartered bank

limited

1.64% 1.99% 8.74% 11.78% 12.94% 13.4%

Askari Bank 12.74% 18.97% 19.24% 20.13% 22.29% 24.9%

Conventional Banks

Average 15.40% 16.84% 17.97% 18.84% 19.98% 22.10%

Bank IslamiPakistan -1.22% -10.2% 0.77% 8.96% 8.40% 7.0%

Al baraka Bank 3.31% 8.82% 6.30% 11.28% 5.25% 8.5%

Burj bank limited 0.70% -6.29% -12.5% -5.99% 4.44% 2.40%

Dubai Islamic bank -3.80% 3.25% 0.23% 4.05% 2.10% 6%

Meezan bank limited 9.70% 18.08% 17.79% 24.45% 22.66% 25.67%

Islamic banks average 1.54% 2.81% 2.87% 8.45% 8.57% 9.71%


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Figures are showing the return on equity of bothe the banks. The results are

showing that Conventional banks are in much better position then the Islamic

banks, the latest signals have shown that Islamic banks have shown improvement

in this regard but over all gap is much higher it may be due to that Islamic banks

are very new in the field of banking as compired to the conventional banks.

3.2. Return On Asset

It is the one of the most comprehencive measurement regarding banks earning

capacity.It is used to tell that how much per rupee is eared by investing in assets.

ROA takes efficiency concept and earning percpective into its account due to this

characterstic it is widely used for representing the earning of the banks. How

much higher it is that much better it is for that instition. An increasing trend of it

shows the effiency of the management iof the bank.

ROA= Net Profit after Tax

Total Asset


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Table 3.02 Return On Asset

Year 2008 2009 2010 2011 2012 2013

Allied bank limited 1.15% 1.80% 1.90% 1.52% 1.97% 2.2%

Habib bank limited 1.40% 1.60% 1.74% 1.95% 1.38% 1.9%

Muslim Conventional bank 3.52% 3.26% 2.86% 2.74% 2.56% 3.23%


limited

0.25% 0.30% 1.20% 1.56% 1.77% 1.92%

Askari Bank 1.44% 1.52% 1.62% 1.48% 2.05% 2.09%

Conventional Banks

Average 1.55% 1.70% 1.76% 2.15% 1.90% 2.27%

Bank islamiPakistan

-

0.25%

-

1.45%

0.10% 0.52% 0.53% 1%

Al baraka Bank 0.20% 0.45% 0.30% 0.53% 0.46% 0.58%

Burj bank limited

0.40% -

2.52%

-

3.04%

-

1.06%

0.20% 0.35%

Dubai Islamic bank

-

0.55%

0.46% 0.06% 0.50% 0.55% 0.65%

Meezan bank limited 0.75% 1.43% 1.32% 1.70% 1.30% 1.79%

Islamic banks average 0.08% 0.25% 0.28% 0.45% 0.58% .87%

Graph 10 of Averages


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From the facts and figure of ROA of both of the sectors i.e. Islamic banks and

Conventional banks, conventional banks are showing an increasing trend and their

returns are much higher then the Islamic banks on the other side Islamic banks are

showing progress but again as compaired to the conventional banks they are much

behind.

3.3.Deposits to total asset ratio:

This tool is used to show total debt verses total assets owned by the firm. This

ratio aiso tells the total worth/value of the company. Higher the ratio higher the

risk.

Deposits to asset ratio = Total depositsTotal asset

Conventional Bank

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

2008 2009 2010 2011 2012 2013

Conventional Bank

Islamic Bank


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Table 3.03 Deposit to total asset ratio

2008 2009 2010 2011 2012 2013

Allied bank limited

81.1% 78.6% 82.1% 77.5% 81.3% 81

Habib bank limited

79.9% 79.3% 80.8% 81.3% 75.5% 78.02

Muslim Commercial bank

74.3% 71% 75.5% 74.8% 70.5% 75.12

Standard chartered banklimited

65.6% 65.1% 67.28% 64.7% 66.7% 68

Askari Bank 79.1% 78.69% 78.4% 78.5% 78.% 80.12

Conventional Banks

Average 76% 74.5% 76.8% 75.36% 74% 76.69%

bank islamiPakistan

65.7% 81.6% 84.83% 85.7% 86.5% 85.06

Al baraka Bank 81.2% 80.9% 81.4% 84.7% 86.0% 85.48

Burj bank limited 53.0% 52.1% 71.5% 72.55% 76.3% 76.59

Dubai Islamic bank

79.3% 79.1% 78.7% 79.6% 83.4% 83.98

Meezan bank limited

82.6% 79.9% 84.7% 83.78% 83.6% 84



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Graph 11 of averages

The ratio tells that Islamic banks are higher than conventional banks in this

matter which means that Islamic banks have more risk factor as they work on the

basis of shairing risk and profit, bank works as partner with its custumer just due

to this reason Islamic banks have high risk factor than the conventional banks.

3.4.Deposit to equity ratio:

It basically tells the policy of the management of the company. It tells how the

company finances its projects i.e how much from debt and equity.

Deposit to equity ratio= Total deposit

Total equity

Conventional Bank

65%

70%

75%

80%

85%

2008 2009 2010 2011 2012 2013

Conventional Bank

Islamic Bank


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Table 3.04 Deposit to equity ratio

Year 2008 2009 2010 2011 2012 2013Allied bank limited 1.3 1.4 0.7 1.3 0.80 1.2

Habib bank limited 0.7 0.80 0.4 0.49 1.6 1.69

Muslim Conventional bank 0.4 0.7 0.3 0.4 0.8 1.00

Standard chartered bank limited 0.30 0.3 0.3 0.3 0.4 0.6

Askari Bank 0.9 0.6 0.8 0.69 0.85 .96

Conventional Banks Average 0.72 0.64 0.5 0.63 0.89 1.09

bank islamiPakistan 0.06 0.04 0.08 0.17 0.3 0.5

Al baraka Bank 1.36 1.4 1.7 1.05 0.4 0.6

Burj bank limited 0.02 0.3 0.08 0.09 0.54 0.78

Dubai Islamic bank 0.01 0.03 0.17 0.3 0.25 0.4

Meezan bank limited 0.64 0.89 0.56 0.7 1.2 1.5

Islamic banks average 0.41 0.53 0.518 0.46 0.53 0.75


0

0.5

1

1.5

20082009

2010

2011 20122013

Conventional Bank

Islamic Bank


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From the data we can conclude that conventional banks has greater deposit to

equity ratio which shows that conventional banks are using more debt financing

as compaired to the equity, while Islamic banks are using equity in greater ratio

for financing the result may be due to that still no. of deposits are not very much

with them and due to the rules and regulations which they are working on..

3.5.Capital ratio:

It is also known as Capital to risk asset ratio. It is a ratuio of the risk of the bank

to its capital. The purp[ose is, the safety of the accountholders and the promotion

of the efficiency of financial system.

Capital ratio= Total equity

Total asset

Table 3.05 Capital Ratios

Year 2008 2009 2010 2011 2012 2013

Allied bank limited 5.7% 6.19% 6.9% 7.3% 6.85% 7.2

Habib bank limited 8.5% 8.71% 9.4% 8.8% 7.4% 7.9

Muslim Conventional bank 11.8% 12.3% 12.5% 12.3% 11.78% 12

Standard chartered bank limited 16.6% 14.1% 14.8% 14.2% 12.7% 13.2

Askari Bank 7.6% 8.7% 8.8% 9.2% 8.6% 8.9

Conventional Banks Average 10.04% 10% 10.49% 10.36% 9.46% 9.84%

bank islamiPakistan 27.4% 13.7% 10.5% 8.75% 7.5% 7.9

Al baraka Bank 5.8% 5.19% 4.72% 4.8% 5.05% 5.09

Burj bank limited 43.9% 36.9% 24.15% 20.9% 12.4% 13.02


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Dubai Islamic bank 15.7% 17.09% 15.17% 12.9% 10.7% 11.2

Meezan bank limited 7.4% 7.8% 6.9% 6.66% 5.65% 6.02


Graph 13 of Averages:

Ratios of Islamic banks are higher then the Conventional banks which may give

the impact that Islamic banks are more cautious about it as they are in their

developing stage.

3.6.Earnings per share:

The ratio tells about the profit allocation of a company against its every

outstanding share. It also tells the profitability of the organization.

Earnings per share= Earnings available to ordinary shareholdersNumber of ordinary shares in issue

0.00%

5.00%

10.00%

15.00%

20.00%

20082009

20102011

20122013

Conventional BankIslamic Bank


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Table .06 Earnings per share

Year 2008 2009 2010 2011 2012 2013Allied bank limited 6.44 10.07 10.6 11.9 12.56 13


Muslim Conventional bank 24.5 22.6 22.21 23.09 23.09 23.19

Standard chartered bank limited 0.18 0.24 0.98 1.44 1.56 1.68

Askari Bank 8.35 8.54 9.0 12.17 15.75 15.92

Conventional Banks Average 10.53 11.23 11.958 13.78 14.28 14.56

bank islamiPakistan -0.10 -0.92 0.09 0.79 0.79 0.82

Al baraka Bank 0.96 2.12 1.44 2.4 1.6 1.8

Burj bank limited 0.09 -0.59 -1.07 -0.39 0.12 0.16

Dubai Islamic bank -0.31 0.4 0.02 0.29 0.52 0.62




0

5

10

15

20082009

20102011

20122013

Conventional Bank

Islamic Bank


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Conventional banks are having more earning per share as compaired to the

Islamic banks whoch in simple words attracts more investor then the Islamic

banks. But with passage of time it is hope ful that Islamic banks will also come in

good position.

3.7.Loan deposit ratio:

Thus ratio is very much specific to the banking sector as they deal in the

advancing of loans. This ratio tells about the liquidity of the company further

more it should be stable as if it is high or on the other hand if it is very much lowboth situations are not ideal for the bank, it should be moderate one.

Loan deposit ratio= Advances

Deposits

Table 3.07 Loan to deposit Ratios

2008 2009 2010 2011 2012 2013

Allied bank limited 75.19% 76% 72.32% 65.64% 56.15% 56

Habib bank limited 80.42% 71.79% 67.33% 53.94% 45% 44.65

Muslim

Conventional bank

82.65% 73.4% 63.58% 50.90% 48.2% 48

Standard chartered

bank limited

78.91% 70.69% 74.36% 70% 63.60% 63.24

Askari Bank 80.82% 77.52% 66.35% 60.48% 57.05% 57

Conventional

Banks Average 79.60% 73.86% 68.76% 59.68% 53.97% 54%

bank islamiPakistan 53.60% 38.35% 52.1% 49.58% 43.52% 44%

Al baraka Bank 83.40% 71.74% 65.85% 57.45% 53.08% 53%


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Burj bank limited 111.50% 73.74% 49.38% 65.08% 67.05% 66.05%

Dubai Islamic bank 73% 74.93% 74% 63.56% 51% 50.6%

Meezan bank limited 57.84% 44.09% 49% 44.54% 41% 40.86%

Islamic banks

average 75.67% 60.56% 58.22% 56.02% 51.11% 50.90%


The figers are giving the result that both of the sectors are moving towards the

minimum amount. Why they are doing this?the factors may be many. Such types

of institutions try their level best to keep minimum amount of cash with them in

order to invest more and more, and to generate more profit for them. We can see

that the conventional banks have higher ratios as compared to the Islamic banks.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

2008 2009 2010 20112012

2013

Conventional Bank

Islamic Bank


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limited 2.88 1.98 1.46 1.04 1.28

1.3

Askari Bank 12.19 5.97 4.87 4.04 3.38 3.4

Conventional Banks

Average 3.4 2.03 1.62 1.39 1.28 1.30

bank islamiPakistan 1.88 1.98 0.95 0.83 0.74 0.72

Al baraka Bank 0.52 0.46 0.60 0.38 0.35 0.41

Burj bank limited 0.54 0.55 0.46 0.46 0.39 0.41

Dubai Islamic bank 0.56 0.65 0.68 0.68 0.67 0.66




0

0.5

1

1.5

2

2.5

3

3.5

2008 20092010

20112012

2013

Conventional Bank

Islamic Bank


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The data shows that both of trhe sectors are round about in the same position and

showing round about the same results i.e impact of EBIT is normal to both of the

sectors. If the amount becomes to high the company becomes inpredectable about

the earnings

Degree of Financial Leverage:

It helps in calculation of the comparative change in net income due to change in

the capital structure of the company. Higher the leverage of the company higher

risk it has.Further more it tells the effect of change in EBIT on EPS of a company.

Degree of Financial Leverage = % change in EPS/ % Change in EBIT

Table 4.02 Degree of Financial Leverage

Year 2008 2009 2010 2011 2012 2013

Allied bank limited (%) 4.97 3.92 4.22 2.97 3.14 3.44


Muslim Conventional

bank 2.12 2.46 2.35 2.46 2.44

2.46


limited 7.29 9.2 2.95 2.38 2.3

3.05

Askari Bank 5.06 3.05 3.65 3 3.18 3.32

Conventional Banks

Average 4.4 4.9 2.5 2.22 3.3 3.2

bank islami Pakistan -2.19 -1.18 4.2 5.75 6.62 7.02

Al baraka Bank 0.0045 0.0013 0.0017 0.0009 0.0013 0.002

Burj bank limited 1.4 -2.8 -1.54 -6.86 1.87 2.00

Dubai Islamic bank -10.02 10.37 22.00 -9.02 -1.45 -12.01



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Islamic banks average -1.8 1.61 5.2 -1.6 -1.68 -0.2


Data shows conventional banks has greater DFL then Islamic banks which clearly

states high risk in them and % change in the EPS of conventional bank has greater

effect on EBIT.

-2

-1

01

2

3

4

5

6

2008 2009 2010 2011 20122013

Conventional Bank

Islamic Bank


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5.

CONCLUSION

After analyzing the facts and figures available to us we have reached to the

conclusion that Islamic banking industry is a fast growing industry as people are

now accepting it. It has to cross still multiple of hurdles as its compitator is

Conventional bank which is touching its peak and has fully matured and Islamic

banks are very much behind from them in multiple fields, ofcourse due to the

reason that they are very new and facing problems from people as well as through

regulations by the government. Some of the Islamic banks are showing great

growth signals but still there performance needs improvements. It is quite obvious

that any new sector or field always needs a lot of improvements by this way or by

that way. Hopefully in the coming few years Islamic banks will be as huge and

large industry as today conventional banks are. The biggest indicator of the

success of Islamic banks is, round about all of the Conventional banks have

opened their Islamic windows whuich clearly states that there is huge demand of

Islamic banking industry by the general public.

5.1. LIMITATIONS

Every kind of reacerh has bundle of limitations, same is the case here.Evolution Stage.

Islamic banks came infront of the public since last two decades on the other side

conventional banks are working for a century, in a nut shell there is no

compairision of both of these industories because shuch types of reaseaches goes

completely in the favor of one or the other.

Environment

State bank of Pakistan is the regulator In the country all of the rules and

regulations related to banking sector is completely on the basis of intrest,

Although it is Islamic Republic of Pakistan but Islamic laws are merely followed

in the country.Hardly one can find a rule which will be proIslamic. In this type of


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situation poor performance of Islamic banks can easiliy be justified and

supported.

Windows Islamic banking

As the Islamic banking is now moving towards progress, due to the increased

demand of of Islamic banking now a days, Conventional banks have started their

windows operation as Islamic banking due to which now while analysis it is really

difficult to under stand that how much contribution is their of Islamic windows in

their revenue and how much of conventional branches.

Differences in operations methods

Both of the banks have very much different operating methodology. Conventional

banks purly work on the basis of Interest with merely no chances of loss on the

other side Islamic banks work on Islamic principles on the basis of profit and loss

shairing, due to which results will automically differ of both of the sectors.

Research

Whole the work is done on the analysis without deeply moving in the banking

field. All the work is done on the basis of available data through differentresources which cant be claimed as 100% correct.

5.2. RECOMMENDATIONS

On the basis of study done by us we have come to the conclusion that by

taking following steps Islamic banking can be improved very soon.

Employment of effective management, which will lead the bank to more

customers.

Full support by state bank of Pakistan, so that it can come as a great

competator of Conventional banking system.

Shariah advisors should be the part of State Bank of Pakistan, as a

permanent membors.


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Educational campaigns should be started by the Islamic Banks them selves

to educate people.

Salybus should be introduced at bechlors level of Islamic banking which

will attract people to wards Islamic banking.

People should be hired who have thoroughly studied the Islamic banking,

and must be awaire of the basic concepts of Islamic transactions.

Islamic banks should try their level best to move their branches to the

remote areas of yhe country including the main cities.

They have to do promotions through different and unique ways, such as

using the FATVAS and by requesting the ULAMAS to say some thing or

to tell the right thing to yhe people.

Islamic banks should concentrate on niche market, i.e. they should work

with small and medium enterprises, should concentrate on farmers and

enterprenures.

In order to attract people ther must have to give more profit then

conventional banks just to get once their confidence.

Such types of rules should be made by the govt. that Internationallyrenouned Islamic Banks should vome and invest in Pakistan, through

which not only direct forien investment will come in the country but as

well as poverty reduction will take place.

Internationally financially strong groups will easily compete with present

conventional banks.


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6.

REFERENCES

1. Jones Stephany .2001. Governance of the World Bank . DFID

2. Lastra Rosa.2010. The role of the IMF as a global financial authority .LSE

Financial Markets Group Paper Series

3. Weiss A.Martin.2013 International Monetary Fund: Background and Issues for

Congress. Congressional Research Service

4. Bossone Biagio.2008. The Effectiveness of IMF Surveillance A study on global

financial governance. World Economics.Vol 9 No 4

5.Malik, M., 1999, Financing in Islam: an operational approach, 1st ed, Islamabad

(Pakistan), malik publications

6.Meezan bank ltd, (nd), 2010, history of Islamic banking and highlights of

Meezan bank ltd, [online], available at

http://www.meezanbank.com/pages.aspx?iPageID=34, [accessed on 15 dec,

2012].

7.Commerce solutions, 2010, assignment on state bank of Pakistan and Islamic

banking, [online], 17 july, available at

http://commerceplus.blogspot.com/2010/07/assignment-on-state-bank-of-

pakistan.html, [accessed on 15 dec, 2012].

8.Van Horne, J., Wachowicz, J., 2006, Fundamentals of Financial Management,

13th ed, UK, Pearson Education.

9.Market Treasury Bills Auction Results, 2005 (Revised), EDMD, (Cmnd.

Circular 07), Karachi, State Bank of Pakistan.


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Links to financial statements:

http://www.dibpak.com/AboutUs.aspx?tab=6

http://www.burjbankltd.com/about/financial-highlights

http://www.meezanbank.com/pages.aspx?iPageID=403

http://www.albaraka.com.pk/investor-relation/financial-statements.php

https://www.mcb.com.pk/ir/fin_data_rep.asp

http://www.standardchartered.com.pk/pk/about-us/financial-statements.html

https://www.abl.com/investor-relations/financials-reports/

http://www.hbl.com/investor-relations-annual-reports-2012.php

http://www.askaribank.com.pk/financial_report.php
http://www.dibpak.com/AboutUs.aspx?tab=6http://www.dibpak.com/AboutUs.aspx?tab=6http://www.burjbankltd.com/about/financial-highlightshttp://www.burjbankltd.com/about/financial-highlightshttp://www.meezanbank.com/pages.aspx?iPageID=403http://www.meezanbank.com/pages.aspx?iPageID=403http://www.albaraka.com.pk/investor-relation/financial-statements.phphttp://www.albaraka.com.pk/investor-relation/financial-statements.phphttps://www.mcb.com.pk/ir/fin_data_rep.asphttps://www.mcb.com.pk/ir/fin_data_rep.asphttp://www.standardchartered.com.pk/pk/about-us/financial-statements.htmlhttp://www.standardchartered.com.pk/pk/about-us/financial-statements.htmlhttps://www.abl.com/investor-relations/financials-reports/https://www.abl.com/investor-relations/financials-reports/http://www.hbl.com/investor-relations-annual-reports-2012.phphttp://www.hbl.com/investor-relations-annual-reports-2012.phphttp://www.askaribank.com.pk/financial_report.phphttp://www.askaribank.com.pk/financial_report.phphttp://www.askaribank.com.pk/financial_report.phphttp://www.hbl.com/investor-relations-annual-reports-2012.phphttps://www.abl.com/investor-relations/financials-reports/http://www.standardchartered.com.pk/pk/about-us/financial-statements.htmlhttps://www.mcb.com.pk/ir/fin_data_rep.asphttp://www.albaraka.com.pk/investor-relation/financial-statements.phphttp://www.meezanbank.com/pages.aspx?iPageID=403http://www.burjbankltd.com/about/financial-highlightshttp://www.dibpak.com/AboutUs.aspx?tab=6

Documents

Islamic Banks vs. Commercial Banks