The Effects Of E-banking On Bank Performance The Case Of Selected Ethiopian Commercial Banks

In spite of the conspicuous use of the e-banking as a delivery channel in banks´, there is a relative dearth of empirical studies that provide a quantitative analysis of the effect of the e-banking service on banks´ financial performance. Because of this fact, this paper fills the gap. Since, study is aimed to test the effect of e-banking on the profitability of commercial banks in Ethiopia during the period 2011-2015. The study sample consists of six commercial banks in Ethiopia. Percentages are used to test the effect on profitability; these percentages are Return on Assets and Return on Equity as profitability measures. Other used as independent variables are: ATM, Debit cards, and POS. Regression analysis is used to test the effect of e-banking services on theProfit .The regression analysis showed that there is positive effect of e-banking services on the profitability of commercial banks in terms of ROA, and ROE.

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