Title: An evaluation of performance of public sector financial institutions: evidence from Pakistan

Authors: Muhammad Haris; Yao HongXing; Gulzara Tariq; Ali Malik

Addresses: School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, China ' School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, China ' School of Finance and Economics, Jiangsu University, 301 Xuefu Road, Zhenjiang, Jiangsu Province, China ' QFBA-NU, Qatar Financial Centre Authority, Qatar

Abstract: The purpose is to analyse the impact of internal factors and government change on the individual as well as the sector-wide performance of public sector banks of Pakistan. The study employs balanced panel data. The OLS-robust regression is used to examine the impact of internal factors, including Log(TA), LDR, IAR, EQTA, NPLR and government change (GOV), a dummy variable, on the profitability of public sector banks measured by ROA, ROE, PBTR and NOM. To analyse the performance of the overall public banking sector and each bank separately, the graphical method is used. The study reveals indifferent results in terms of government change but reports negative impact of government transition on performance. It also finds NPLR as the most significant factor for the profitability of public sector banks of Pakistan.

Keywords: Pakistan; public banks; financial performance; return on assets; ROA; return on equity; ROE; PBTR; NOM; government change.

DOI: 10.1504/IJBPM.2019.098642

International Journal of Business Performance Management, 2019 Vol.20 No.2, pp.145 - 163

Received: 18 Nov 2017
Accepted: 13 Apr 2018
Published online: 29 Mar 2019 *

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