• Ishtiaq Khan Sarhad University of Science & IT, Peshawar
  • Wali Rahman Sardar University of Science & IT, Peshawar
  • Saeedullah Jan Khushal Khan Khattak University, Karak
  • Mushtaq Khan Abasyn University of Science & IT, Peshawar


Islamic Banking, Conventional Bank, Financial Analysis of Banks, Banking Sector of Pakistan, Financial Performance


Two types of banking are operating in the world namely conventional and Islamic. Banks offer different types of products and services for the satisfaction of customer for their financial need. Conventional banks were based on interest while Islamic banks based on free interest banking. Financial ratios techniques applied for the evaluation of financial performance of conventional &Islamic banks of Pakistan. Habib Bank Limited (HBL) & Allied Bank Limited (ABL)are typical examples of conventional bank where as Dubai Islamic Bank Limited (DIBL) & Meezan Bank Limited (MBL) was taken as an Islamic bank. Both types of banks included in the study represent whole banking industry of Pakistan. Three (03) years data were collected from Publication of State Bank of Pakistan SBP) “Financial Statement Analysis of Financial Sector of Pakistan 2009-2011â€,(annual reports of respective banks, Islamic banking bulletin and their respective official websites. Analysis reflects, the liquidity ratio of Islamic banks appeared higher as compared to conventional banks, while profitability & solvency ratios of conventional banks are higher as compared to Islamic banks. Debt to asset ratio of Islamic banks seems better than conventional banks due to low debt financed. The growth rate of Islamic banks in Pakistan is comparatively higher than conventional banks in the context of new branches. 

Author Biographies

Ishtiaq Khan, Sarhad University of Science & IT, Peshawar

MS (Finance) Scholar, Department of Business Administration

Wali Rahman, Sardar University of Science & IT, Peshawar

Associate Professor, Deparment of Business Administration

Saeedullah Jan, Khushal Khan Khattak University, Karak

Assistant Professor/Chairman, Department of Library & Information Sciences 



Mushtaq Khan, Abasyn University of Science & IT, Peshawar

MS Scholar, Department of Business Admintration


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