Abate, Sewale (PhD)Abi, Abel2021-09-012023-11-042021-09-012023-11-042021-06http://etd.aau.edu.et/handle/123456789/27770The main aim of the study was to examine the impact of asset and liability management on profitability of selected private commercial banks in Ethiopia for the study period 2010 to 2019. The researcher used explanatory research design to examine the impact of asset–liability management on profitability of selected private commercial banks in Ethiopia. Eleven private commercial banks were selected based on purposive sampling technique, quantitative data collected from each selected private commercial banks, and from National bank of Ethiopia. Profitability was used as dependent variable, whereas. Income diversification, liquidity, bank size, funding cost, asset quality, capital adequacy and operational efficiency .The collected data analyzed using descriptive statistic, correlation analysis and multiple regression analysis with the help of Eviews statistical software. The finding of the study shows that income diversification, liquidity, bank size and funding cost statistically significant and positive effect on banks profitability. On the other hand, variables like asset quality, capital adequacy and operational efficiency has a negative and statistically significant effect on banks profitability. The study revealed that asset quality ratio, operational efficiency, income diversification, liquidity, bank size, capital adequacy and funding cost are the key driver of return on asset of banks, Therefore, Bank managers are advised to give due attention to the significant variables to Improve profitability.enProfitability, Commercial banks, Asset liability ManagementThesis