The Relationship between Bank Growth and Profitability, Emperical Evidence from Eac: Panel Data Analysis

The study was aimed to examine the relationship between bank growth and profitability in East Africa Country (EAC) region, the study employed data from four regions using secondary panel data from Bank scope. The findings revealed that the bank growth indicators have substantial impact on profitability of the banks in EAC. In another case Kenya banks were the most efficiency among the banks in EAC, followed by Tanzania, then Uganda and the least was Rwanda. Generally, banking system has been inefficiency with the average score of 95%, implying that 5% input are waste. While the financial performance indicators have noted Uganda to be the best performer, followed by Kenya, then Tanzania and the least was Rwanda, where asset quality, management efficiency and capital adequacy influenced the profitability positively. Liquidity has negatively influenced negatively the profitability of the banks. Key words: Profitability, Growth, DEA