MARKETING OF F.

S A

BAF 8A, SUBMITTED BY: ABDULLAH, FA19

, EMAAZ NADEEM FA19-BAF-

5/28/2023 037
 MARKETING OF F.S, 28 MAY, 2023

A COMPARISON BETWEEN
DIFFERENT FINANCIAL
INSTITUTIONS AND THEIR
PERFORMANCES

As, we know continuously surviving the financial market and meeting the current financial market
demands is not a cup of tea , for every financial institutions. So in order to survive in the tougher market
conditions and to fulfill the ON GOING CONCERN phenomenon, these financial institutions have not to
only focus on the future performances of their organizations, but also a comparison and analysis between
their past and current financial performances and to look and rectify certain loopholes, which might be
hindering their organizations overall market growth, is also important.
Following is a brief comparison between different financial institutions/ banks in Pakistan and their past
financial performances and current credit and service ratings:

FINANCIAL COMAPRSION: As we look at the financial comparison between the following banks we
see that Meezan bank and ubl has performed better in terms of profit as respect to other banks, with an
increase of 17, 785 Rs in pbt for ubl and 10,187 Rs increase in profit for meezan bank, meaning that HBL
and MEEZAN BANK were able to attract larger customer market and finances than other banks, and
have generated increased profit than other banks,

HBL NBP UB MC ME
L B EZA
N
BA
NK
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Ranking

By total assets 1 1 2 2 3 3 4 4 6 6

By net assets 2 2 1 1 3 3 4 4 7 9

By profit before tax 1 1 2 3 4 5 3 2 5 4

Profit before tax 62,028 53,031 53,792 46,384 52,167 34,382 53,275 49,318 47,977 37,790

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MARKETING OF F.S, 28 MAY, 2023

But, there exist certain reasons, which depicts how ubl and meezan bank were able to attract more
customers and generate more profit than other banks, for example if we look at the online banking app
rating of these banks we see that:

Top Rating Banking Apps Rating (Combined

Apple and Play Store)

Meezan Mobile Banking 9.7

UBL Digital 9.1
DIB Pakistan 8.8
HBL Mobile 8.6
HABIBMETRO Mobile App 8.5

, The online banking app for Meezan and UBL bank has higher rating than HBL and other bank, meaning
their customers were more satisfied with the financial services provided by these banks than other bank in
the market, so the other banks have to focus on improving their online banking apps and services to
satisfy their target market and increase their overall market capitalization.
Furthermore, if we look at the credit rating of certain banks we see that:
DIB VIS Credit Rating Agency A-1+ AA

HBL VIS Credit Rating Agency A-1+ AAA

HMB PACRA A1+ AA+

Although, DIB (Dubai Islamic bank) might be performing better in terms of customer experience than
the HBL AND HMB (Habib metro bank), they surely are lacking behind in terms of credit rating, when
its comes to comparison between these bank and the situation is even worse for HMB (Habib metro bank)
, because they are not only lacking in terms of customer experience ( i.e, low bank app rating), but also in
credit rating, so they really have to enhance their financial and customer relationship and experience
management to keep up with other market competitors.
Now, following are the ways through, which these banks can expect to strat developing in the financial
market, if they focus on some of these certain points which are:
 By New channels and reconfiguring the landscape, meaning banks will have to redefine the tasks
and purpose of physical their physical branches as cashless and digitalization is increasing ( i.e.
digital credit cards)
 By Harnessing a shift to digital economy, again as the era of digital currency is growing rapidly,
banks need to reconfigure their strategy on how to survive in the financial market conditions
 By reimagining costs and developing new operating models, banks have to not only reduce cost
of operations but also will have to look for different ways to increase financial growth
 BY defining new reality ways of working, Remote working will drive re- evaluation of
workforce management, culture and leadership. Banks must identify and optimal mix for
the operating model to enable long- term flexible working. The labor force will become ever
more automated and resilient.

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 By rewriting the risk management play book, Banks will need to fundamentally re-examine
their resiliency across the complete spectrum.- operational, liquidity, capital, market, and
credit risk – to model for the next unforeseen event. New risk models and strategies will be
needed
 By values and purpose front and center, clear corporate purpose becomes even more
critical. Corporate behavior, in the court of public opinion, will drive future customer
loyalty. Societal responsibility, ethics and support for progressive climate related products
and services are vital.


REFEREENCES: https://www.sbp.org.pk/publications/c_rating/index.htm#:~:text=Credit%20rating
%20is%20an%20independent,various%20quantitative%20and%20qualitative%20factors.
https://kpmg.com/pk/en/home.html

END.

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