Sample Thesis Paper

The Net spread ratio is calculated by dividing the Profit after Taxation (Net income) by the Interest Earned (Sales). This ratio is similar to the Net Profit Margin for non banks. The higher the ratio is, the better it is for the company in question.

The Net Spread Ratio for MCB bank for the year ended 2008 was 44.52% as compared to 48.03% for the preceding period, therefore registering a slight increase. In contrast, the Net Spread Ratio for HBL bank was 29.37% for 2008 as compared to 19.98% for the year ended 2007. This shows a significant increase around 47% in the Net Spread ratio for HBL bank for the year 2008 when compared to the previous year. This also shows that the Net Spread ratio for MCB Bank is more than twice that of HBL bank and also that in the period in which HBL bank showed an increase in this ratio, MCB Bank showed a slight increase. This ratio like the previous one is in favour of MCB Bank.

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