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Profitability acts as an evaluative index which is use to calculate the firm’s performance. This is reported that a country’s economy depends on the performances of firms. Moreover, banks also play a vital role in growth of a county’s economy. This is revealed that the main factor is profitability, which enhances economic growth. Banking sector of Pakistan frequently changes the system of banking to facilitate investors and achieve their goals in order to overcome the financial crises. The main objective of this paper is to examine the determinants of commercial banks in Pakistan. For this purpose used as determinants of profitability-return on assets and return on equity. For analysis purpose used panel data methods and collected data of 19 banks’ financial statements during 2012-2020. The results revealed that inflation has a positive and significant relation with return on assets and insignificant relationship with return on equity. Moreover, concluded that CAR has a positive and significant effect of the profitability. This is revealed that large size banks achieve a higher performance level. Liquidity has negatively and significantly affect the level of return on equity. The results also demonstrated that capital adequacy, liquidity and GDP have insignificant effect on bank profitability. Therefore, suggested that concern authorities need to enhance the approaches which improve the financial outcomes of the banking sector.

Keywords: Bank Size, Bank Performance, Gross Domestic Product, Inflation, Liquidity, Capital Adequacy.