BANKS PROFITABILITY, DEBT, LIQUIDITY AND INFLATION: A CASE OF PAKISTAN

Authors

  • Dr. Waqar Munir
  • Muhammad Asif Ali Malik
  • Dr Muhammad Sadiq Malik
  • Dr. Muhammad Navid Iqbal

Abstract

Measuring the profitability is known to survive for an organization which is not in profitable condition while an organization with vast profit has the capability to provide its shareholders with huge benefits on their investment. This study majorly investigates the determinants of profitability of Commercial Banks  by Return on Assets (ROA) and Return on Equity (ROE) through micro-environment and macro-environment factors: debt and liquidity and macro-environment factor is inflation rate. This study based on secondary data analysis and includes 26 commercial banks working in Pakistan. Multiple regression used to examine the influences of independent variables (, debt, liquidity, and Inflation) on dependent variable profitability (ROA and ROE).mAll other factors have influence on ROE and ROA except assets is insignificant statistically. The study findings have implications for both levels: at firm level as well as economic level with respect to micro-environment and macro-environment effects.

 

Key Words: Profitability, Debt, Liquidity, Inflation,  Return on Assets (ROA), Return on Equity (ROE)

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Published

2025-10-02

How to Cite

Dr. Waqar Munir, Muhammad Asif Ali Malik, Dr Muhammad Sadiq Malik, & Dr. Muhammad Navid Iqbal. (2025). BANKS PROFITABILITY, DEBT, LIQUIDITY AND INFLATION: A CASE OF PAKISTAN . Policy Journal of Social Science Review, 3(10), 50–68. Retrieved from https://policyjssr.com/index.php/PJSSR/article/view/521