DETERMINANT OF BANK PROFITABILITY IN ETHIOPIA (THE CASE OF OROMIA BANK, AWASH BANK AND COOPERATIVE BANK OF OROMIA)

<strong> Abstract</strong> <em>This study assessed the</em><em> Determinant of Bank profitability in Ethiopia</em><em> in the case (Oromia Bank, Awash Bank, Cooperative Bank of Oromia). To achieve the overall objective, data were collected from annual report of the selected three commercial banks. To determine the sample commercial banks, the study was used purposive sampling techniques. Accordingly; from thirty-one total commercial banks, three of them were selected, i.e. two of them from middle peer group and one of them from leader peer groups, considering theme stablishment years, asset size, capital level, loan growth and deposit. As the study wa saimed to assess,</em><em> Determinant of Bank profitability in Ethiopia </em><em>the case of private banks trend analysis was applied. Accordingly, the study compares and contrasts performance of commercial banks based on annual report of each bank during the year 2016 to 2024. The study also tests the relationship between dependent and independent variables using correlation and linear regression anal A number of studies have analyzed the</em><em> Determinant of Bank profitability in Ethiopia</em><em>(e.g., Alfadli &amp; Rjoub, 2019; Al-Homaidi et al., 2018; Athanasoglou et al., 2008; Athari, 2021 ). The result showed that </em><em>Determinant of Bank profitability in Ethiopia</em><em> ,have negative and significant impact on banks profitability of the studied private commercial banks by reducing income. Similarly</em><em> Determinant of Bank profitability in Ethiopia </em><em>had negative and significant impact on liquidity of the studied commercial banks by reducing the liquid asset of the bank . Thus, Determinant of Bank profitability in Ethiopia has negative impact on almost all performances indicators of the studied commercial banks. Considering the output of the research, widening of income basis, introduction of new products to reach unbanked society and further exploration on the long run impact of the requirement is recommended. </em>