This thesis aims to examine the Roles of E-banking on Financial Performance ofrnCommercial Banks in Ethiopia. A successful bank in presenting good services to clientsrnand gaining profit is the one using new banking tools. The study has examined the rolesrnof e-banking on return on assets as one of the most fundamental indexes of profitability.rnThe study used secondary data employed purposive sampling technique to select tenrnbanks for the study commercial banks operating in Ethiopia covering the periods fromrn2013 to 2015. In light of prior literature, key explanatory variables were identified torndisclose their relationship and influence on financial performance of commercial banks.rnThese independent and other control variables are value or price of transaction of ATM,rnvalue or price of transaction of POS, debit card, number of automated teller machinernterminals, number of point of sale terminal and market share of banks. Result usingrnrandom effect panel least square regression with the aid of E-view 8 applicationrnexhibited that numbers of ATM terminals, number of POS terminals and bank marketrnshare have positive and significant role on financial performance of commercial banksrnmeasured by return on asset. The study shows that increased number of ATM, POS andrnmarket share had a positive role on the financial performance of commercial banksrnwith many banking institutions indicating that increased market share allowed arncompany to achieve greater scale in its operations which generally improved itsrnprofitability. Therefore, this study recommends for enhancing return on asset commercialrnbanks should exert more on awareness creation about e-banking service and timelyrnsupport for users will cause an increase in e-banking practice in Ethiopia.rnKey Words: Electronic Banking; Commercial banks; ROA; Profitability