Determinants of financial performance of commercial banks in Ethiopia

This study examines the determinants of financial performance of commercial banks in Ethiopia by using panel data of banks over the period 2002-2013. Since the data is secondary in nature, the quantitative approach to research was considered. Under this study, both internal and external factors were included. Based on the regression result, all bank specific, industry specific and macro economic variables affect performance of the bank significantly and except inflation which was insignificant and positive for the performance measured by ROA. Furthermore, all variables have significant effect on the performance of banks when performance is measured using NIM.