Pakistan Banking Sector Performance Based on Mobile Personal Devices: Integrated Model of ROA & ROE

This study aimed to explore the influence of transactions executed through mobile banking on performance of Pakistan banking sector over the period of 2004 to 2013. The sample of this study consists of all 46 banks operating in Pakistan during the considered period. Ratios named as Return on Assets and Return on Equity have been used to measure the performance while on the other hand transactions completed through mobile banking are considered as independent variable. To make the model stronger, spread, credit risk, intermediation cost, weighted average lending rate, non-performing loans to total advances as bank specific factors have been incorporated. All the variables have been fitted into regression equation to apply regression analysis. The results enlighten a significant positive impact of mobile banking transactions on overall performance of Pakistan Banking sector in terms of ROA and ROE. Keywords: Mobile Banking, ROE, ROA, Pakista