Post-Merger Profitability: A Case of Royal Bank of Scotland (RBS)
Muhammad Usman Kemal

Abstract
In this study, I have used accounting ratios to analyze the financial performance of Royal Bank of Scotland (RBS) in Pakistan after merger. I have analyzed their financial statements for four years (2006-2009) by using 20 vital ratios. In spite of certain limitations, accounting ratios are still considered as a convenient and reliable analytical tool. Ratio analysis, being a time-tested technique, is most frequently employed in all financial decision-making processes. The results show that the financial performance of RBS in the areas of profitability, liquidity, assets management, leverage, and cash flows has been quite satisfactory before the merger deal. It means that merger deal fails to improve the financial performance of the bank.

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