| Abstract: | This study's goal is to examine factors that affect Commercial Bank of Ethiopia (CBE) profitability using 32 years’ time series data for the industry from 1990 through 2021. The study included secondary sources of data and quantitative research methods. The secondary data was evaluated using regression models for the Return on Asset indicator of bank performance. The OLS method was used to examine the effects of the following factors separately: Bank Size, Inflation Loans and Advances to Total Asset Non-Interest Income, Credit Risk and Economic growth rate, and Non-interest Expenses. The empirical finding demonstrates that variables including bank size, non-interest income, credit risk, and GDP growth rate have a direct and significant effect on CBE. The profitability of the banks was adversely and significantly affected by factors including inflation, and non-interest expenses. As a result, the effect this element has on the banks' overall financial performance should worry the banks. Finally, depending on the results of the analysis, the researcher has drawn conclusions and offered suggestions. |
