Differences in bank profitability levels can be attributed to bank features, industry characteristics and
contextual properties. Thus, empirical researches on determinants of bank profitability usually contain
various bank and banking sector specific variables and some macroeconomic indicators (e.g. inflation,
interest rates, and GDP growth). This paper aims to identify microeconomic factors that distinguish
profitable from non-profitable banks as well as above and below average bank profitability. In the