COMPARISON OF FINANCIAL PERFORMANCE OF PRIVATE COMMERCIAL BANKS IN PAKISTAN

Commercial banks play an important role for the purpose of sustainable economic development in a country. This paper main theme to presents the comparison of financial performance between private commercial banks in Pakistan during the period of 2015–2019 by using the method of ratio analysis and some other financial indicators. Fourteen Commercial banks out of fifteen banks are selected for comparison of financial analysis. Due to the unavailability of data, the remaining one bank is not chosen for study because, yet they did not publish their final report in 2019. The data of ratio analysis was captured by using the final report of commercial banks, which are available on the bank's official websites. This study provides information about the different ratios which directly impact on bank performance.


INTRODUCTION
The financial system is important for business development and economic development of country, as it provides easy access to finance. Commercial banks are the main part of financial system. Commercial banks are financial institutions which work on the base of facility like funds, crafts as their basic. They act as an intermediary between capital and investment. and borrower money from the investor who have access amount to invest (Daiff, 1995). They institution that accept deposit at any time from public and financial institution are known as commercial bank (Shehab, 1987).Financial institution is those institution which works its major operation to collect money to meet the needs of the public and institution in excess for the purpose of lending it to the investor who wants this money (Qazwini, 1989).
The objective of this study is to analyze the comparison between private Commercial banks Performance in Pakistan during the period (2015-2019) on the basis of financial indicators and others measure which have direct relation with banks performance and this study also provide a proper guidelines to investors for the purpose of investment in future. The financial indicator include different types of financial ratio for evaluate the performance such are include Return on Asset (ROA), Return on Equity (ROE), Earning per share (EPS), Spread ratio, investment to total asset ratio , total debt to total asset ratio and other measured also include. The financial ratio is computed through the source of Annual final report which are available on banks official website.

Commercial banks in Pakistan
Pakistan commercial banking has grown exponentially over the years. In the first years of after independence commercial banks has control by foreign banks. After the period, the situation has changed markedly as a result of both conscious policies to boost the growth of Pakistani banks and structural changes in the economy. Now the banking industry in Pakistan occupy the good position in the form of banking service operation and number of branches .The commercial banking system in Pakistan is play a key role to act as intermediator between investor(who want required money for investment for projects) or saver (who not want to invest money in market and required interest)like the other countries the Commercial banks in Pakistan given different offers in the form of saving scheme to attract the saver and also provide different type of facilities discount trade bills, services render miscellaneous agency, provide remittance facilities and issue guarantees etc.

LITERATURE REVIEW
Recent year increase the attention, on the topic of measurement especially commercial bank performance (Seiford&Zhu,1999). The performance of commercial bank has been empirical study all over the world (Tarawneh, 2006;Halkos&Salamouris, 2004;Webb, 2003;Lacewell, 2003;Yeh, 1996) but unfortunately not much study conduct comparison of banks performance in Pakistan.
Few years ago, generally observe the performance of banks on the base of company size and asset but Tarawneh(2006) says that his study high profitability of banks, that's does not mean always means banks have high total asset, credit, deposit and total capital. Finical performance of the banks also depends on efficiency in operation and asset Management.
Normally, different ways to measure the performance of commercial banks one of them accounting method. (Ncube,2009) says that accounting method, mainly based on the use of financial ratio which are used to assess the banks performance. Sum of different Financial ratio has been used to analyze the performance of banks and other financial institution against benchmark and budget or combination of both methodologies (Avkiran,1995).
Financial ratio analysis (FRA) are used different purpose, these are including check the bank's profitability, indication of business liquidity that's means company ability to cover its debt and check the leverage performance etc. The financial ratio helps to determine the success or comparison between past and recent year result (Lukam,1982).Recent year ago research in Australia that's show the return on asset, interest margin, and capital adequacy ratio are directly impact on customer service (Duncan & Elliott,2004).

METHODOLOGY
To complete the research purpose, the data was collected from the Private commercial banks annual financial report as published in the bank's official website. The data was collected for Private commercial banks which are listed by state bank of Pakistan during (2015-2019) which are used to collect the financial ratio and other financial measure. FRA are used to help the comparison between banks performance. Financial ratio can be divided in three parts.

Return on Equity (ROE Return on Asset (ROA) Earnings per share (EPS) Spread Ratio
Liquidity ratio Investment to total asset ratio Solvency ratio Total debt to total asset ratio Other financial measures are: Total owner Equity

Institution size
The sample of this study was 14 private commercial banks in Pakistan out of 15 banks and that's representation 93.3% of population. One commercial bank is not taken as sample because they do not publish their final report in 2019. ROE is basically collected for investors, the purpose of investment that's show the how much level of profit generated against his investment. Table 1     ROA is basically collected for investors, the purpose of investment that's how much level of profit generate the against the use of bank asset. Table 2 and figure 2 both represent the data of return of Asset during the period of 2015 to 2019 and show the five-year average analysis. The average result of five-year analysis shows that HBL has the highest ratio (2.16%), and the lowest value of ROA is silk (-0.29%). Source: Data are collected from the final report of commercial banks official website during the period of (2015-2019).

RESULT AND ANALYSIS
EPS means how much company generates profit in against of each share of its equity. Table 3   Spread ratio of banks obtained through the interest income divide by interest earned. Table 4   Investment to total asset ratio means how much investment contribution on total asset of banks. Table 5 and figure 5 both represent the data of investment to total asset ratio during the period of 2015 to 2019 and show the five-year average analysis. The average result of five-year analysis shows that HBL has the highest ratio (56.17%), and the lowest value is silk (22.32 %). That's ratio show the which banks are stronger according pay its debt obligation. Table 4 and figure 4 both represent the total debt to total asset during the period of 2015 to 2019 and also show the five-year average analysis. The average result of five year analysis show that ASBK has the highest ratio (94.98%), and the lowest value SCB (87.49%).  JS 15,967,903 16,649,525 16,669,329 15,617,026 17,333,255 16,447,407.6 SBL 11,844,219 12,319,524 12,708,194 12,783,755 14,179,487 12,767,035.8 SILK 14,576,662 12,054,588 13,181,346 14,386,747 10,771,887 12,994,246 SCB 61,950,455 61,282,293 62,936,696 62,238,369 72,916,503 64,264,863.2 SNBL 18,191,942 18,289,227 18,504,599 17,988,874 20,213,595 18,637,647.4 UBL 142,135,475 151,786,861 159,307,047 151,269,948 169,068,883 154,713,642.8 MCB 137,801,938 141,626,625 153,566,377 149,277,729 168,914,783 150,237,490.4 ASBK 26,852,943 32,576,950 32,435,491 33,508,907 42,255,844 33,526,027 Source: Data are collected from the final report of commercial banks official website during the period of (2015-2019).   9,916,655,12 1,068,945,748 1,245,712,113 1,350,598,909 1,481,121,252 1,227,608,707 BAL 902,607,521 917,457,053 988,828,828 1,006,217,843 1,064,672,085 813,956,666 BAHL 639,712,468 751,395,816 944,133,780 1,048,239,003 1,298,682,111 936,432,635.6 FBL 430,072,860 444,464,661 494,933,882 5,999,914,183 629,852,657 1,599,847,649 HBL 2,124,899,508 2,392,699,251 2,563,059,113 2,879,494,859 3,053,733,753 2,602,777,297 HBM 489,879,108 526,606,417 644,553,779 673,395,781 859,574,522 638,801,921.4 JS 218,475,663 264,700,493 388,308,876 456,754,076 469,820,794 359,611,980.64 SBL 80,166,336 101,414,491 117,151,047 122,764,587 129,577,407 110,214,773.6 SILK 133,137,259 135,033,822 166,854,532 176,570,999 205,688,080 117,589,431.8 SCB 447,347,791 474,752,219 513,548,602 576,081,336 619,970,585 526,340,106.6 SNBL 253,341,829 278,520,706 322,133,976 382,497,788 442,540,782 335,807,016 139,193 656,708,369 706,532,042 833,208,006 670,290,864.8 Total asset means the how much banks have own asset. Table 5 and figure 5 both represent the data of Total asset during the period of 2015 to 2019 and show the five-year average analysis. The average result of fiver year analysis shows that HBL has the highest value of asset, and the lowest value of asset is SBL.

LIMITATIONS
 As compare to other Study this Study also have limitation once of them data was not collected for all Private commercial banks working in Pakistan because Summit banksdata 2019 were not yetupload.  Accuracy of research depends on the secondary data only which are issued by commercialbanks.

CONCLUSION
This study shows that each commercial bank result is change according to different ratio related to banksperformance.
 According to financial ratio of five year analysis the result of return on equity, in First Average of institution size or Total Assets 3,000,000,000 2,500,000,000 2,000,000,000 1,500,000,000 1,000,000,000 500,000,000 0

INSTITUTION SIZE
https://www.cribfb.com/journal/index.php/amfbrAmerican Finance & Banking ReviewVol. 5, No. 2;2020 Habib bank limited is at the top, Habib metropolitan bank is the Second, Askari bank is the third, United bank limited is the fourth and BAHL & MCB is the fifth.  According to financial ratio of five-year analysis the result of return on assets, SCB is at the top, MCB is the second, UBL is the third, ABL is the fourth and HBM is the fifth.  According to financial ratio of five-year analysis the result of Earning per share, MCB is at the top, UBL is the second, HBL is the third, ABL is the fourth and BAL is the fifth.  According to financial ratio of five-year analysis the result of total debt to total asset ratio, JS is at the top, ASBK is the second, BAHL is the third, SNBL is the fourth and HBM is the fifth.  According to financial ratio of five-year analysis based on institution Size or Total Assets, HBL is at the top, FBL is the second, UBL is the third, MCB is the fourth and ABL is the fifth.  According to financial ratio of five-year analysis based on total owner's equity, HBL is at the top, BAL is the second, MCB is the third, UBL is the fourth and ABL is the fifth.  According to financial ratio of five-year analysis based on investment to total asset ratio, HBM is at the top, ABL is the second, MCB is the third, HBL is the fourth and BAHL is the fifth.  According to financial ratio of five-year analysis based on Spread Ratio, SCB is at the top, MCB is the second, UBL is the third, HBL is the fourth and BAL is the fifth.  Finally, we highlight the performance of all the Private commercial banks that's helpful for researcher, investor and managers.