Abstract
Banks play pivotal role in financial affairs of individuals, groups, organizations and nations. Banking services may influence their all stakeholders in multifaceted ways. This paper sought to analyze and compare financial performance of three Islamic banks: Meezan Bank Limited (MB), Bank Islami Pakistan Limited (BI) and Dubai Islamic Bank Pakistan Limited through application of liquidity, profitability and activity ratios. It employed quantitative research to empirically analyze financial performance of the banks. Q-Q Plots and ANOVA were used to check data normality and analyze data respectively. The findings show that there is a lack of significant difference in financial performance of the banks in the period of the study. Nevertheless, significant difference is found in equity ratios of the banks. Due to insignificance of entire results except for return on equity, Least Significant Difference (LSD) method is applied to know that return on equity ratio of which bank in the sample is more (less) significant. This study has recommended numerous managerial and strategic level interventions as well as scholarly endorsements for better financial achievement of Islamic banks.