Financial Performance of the Ethiopian Banking Sector

This study investigates the financial performance of the Ethiopian Banking sector using the panel data set for the period 2004/05 - 2009/10. The financial performance of the Ethiopian Banks has been evaluated using the volume of deposit, bank assets, ROE, ROA, and loan-deposit ratio /LDR/. Therefore, a sample of seven commercial banks were selected using simple random sampling technique. The result of the study indicates the Ethiopian banking sector in general, as measured by volume of deposits, granting of loan and possession of assets has also shown a persistent increase throughout the study periods. Moreover, the profitability of the banks during the study periods in particular, and the sector in general presented a tremendous improvement.