Emerie, Asmare (PhD)Getahun, Mulualem2018-06-282023-11-082018-06-282023-11-082015-05http://etd.aau.edu.et/handle/123456789/4549The objective of this study was to analyze the financial performance of Ethiopian Commercial Banks using CAMEL approach and rank the banks based on their performance as well as to test the existence of the relationship between the selected CAMEL factor measurements with the profitability measures. The financial performance of Fourteen Commercial Banks examined by using panel data from year 2010 to year 2014.The study used quantitative research approach and secondary financial data are analyzed by using multiple linear regression model for two profitability measures: ROE and ROA. Fixed effect regression model was applied to investigate the impact & relationship of CAMEL factors: Capital adequacy, Asset Quality, Management efficiency, Earning and Liquidity with bank profitability measures separately. The empirical result shows that capital adequacy, Asset Quality and Management efficiency have negative relation whereas earning and liquidity shows positive relationship with both profitability measures with strong statically significance except Capital Adequacy which is insignificant for ROA whereas Asset quality for ROE. The study suggests focusing and reengineering the banks internal drivers could enhance the profitability of commercial banks in Ethiopia. Furthermore the ranking result based showed the first one by capital adequacy, asset quality and liquidity ratio was Bunna International Bank while Commercial Bank of Ethiopia by Management efficiency and Earning ratio and finally Wogagen Bank was the first by the composite rateen-USCAMEL approachPerformanceThesis