摘要：The purpose of study is to highlight the main core issues of Islamic banking profitability and market size. The paper is focus on Islamic financial system and provides a link between the depositors and investors. The study is conducted for reducing the financial risk. Financial ratios are the best gauge to analyze the overall profitability of the bank. Various financial ratios: Return on Asset and Return on Equity as a dependent variable and Asset turnover, Gearing ratio, Payout ratio, EPS as an independent variables for the enhancing the capital of Islamic bank. The objective of study is to investigate the link between the profitability and market size of Islamic Banking of Pakistan. The research is based on 100 observations and the sample size is collected for ten years from 2007 to 2016. Regression and Assumption test applied in order to check the relationship between dependent and independent variables. The overall results of study are significant less than 0.05%. The study results show that payout ratio having a negative relationship with return on asset and having positive results with return on equity. The study finalized significant results by taking neutralizing the other external variables that the factors of profitability impact on the market size of Islamic banking. The result approves the study is significantly correlated with profitability and market size of Islamic Banking.
