Browsing by Author "TEMESGEN TESFAYE"

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    ANALYSIS OF RELATIONSHIP BETWEEN BANK SPECIFIC FACTORS AND PROFITABILITY: A STUDY ON PRIVATE COMMERCIAL BANKS IN ETHIOPIA
    (Mekelle University, 2025-11-24) TEMESGEN TESFAYE
    This study aimed to examine the impact of bank-specific factors on the financial performance of five selected private commercial banks in Ethiopia. Employing both descriptive and explanatory research designs through a mixed-methods approach, the study utilized primary data collected via questionnaires from top bank managers and secondary data from audited financial statements spanning ten years (2014/2015–2023/2024). Descriptive, correlation, and multiple regression analyses were conducted to interpret the data. The descriptive results indicated that while ROA fluctuated over time, it generally remained stable around the mean; non-performing loans (NPLs) were mostly low, though a few banks showed poor asset quality; and liquidity levels varied but were generally strong. Correlation analysis revealed that ROA had a significant positive relationship with capital adequacy and a significant negative relationship with asset quality. Regression results confirmed that capital adequacy and liquidity positively influenced profitability, whereas asset quality had a negative effect. Based on these findings, the study recommended enhancing systems for managing credit risk, adopting proactive capital and liquidity management frameworks, and strengthening regulatory oversight on asset quality. Finally, it acknowledged certain limitations and proposed areas for future research.