Financial performance of ic and Conventional Banks in Pakistan. Maria Hanif

We conducted this study to evaluate financial performance of the Islamic and Conventional banks operating in Pakistan. The major objective of this study was to present picture of Islamic and conventional banks before the investors, depositors, shareholders, bank managers and regulatory bodies. The required data was collected from financial statements and annual reports of Islamic and conventional banks for the year, 2012- 2013. We used CAMEL techniques to analyze the financial performance of Islamic and conventional banks. We also used t-test to find out P-value. The empirical evidence show that Islamic banks are more efficient, more liquid and less risky vis- à-vis conventional banks. The profitability of conventional banks is more volatile and their default ratio is also high as compared to Islamic banks. We suggest that Islamic banks should train their staff in accordance with Shariah compliance in order to provide services to their customers in real Islamic sense.