Nexus between Retained Earnings and Financial Performance of Listed Commercial Banks at DSE, Tanzania

One of the crucial decisions to the any business is financing decision. The important aspect is the association between retained earnings and financial performance. The research aimed to examine the nexus between retained earnings and financial performance of listed commercial banks at DSE, Tanzania. Data were collected from the financial statements of the selected banks for a period of ten (10) years, from 2014 to 2023, for the four (4) selected commercial banks. The research opted a quantitative research design to clarify connection between explanatory and response variables. Data were examined through descriptive statistics as well as inferential statistics. From the multiple regressions’ analysis, findings revealed that retained earnings were found to have no impact on ROA. The study concludes that concludes that retained earnings have no effect on ROA. The study recommends that commercial banks should make sure they make proper use of reserved earnings as a cheaper source of finance.