Master's Thesis from the year 2020 in the subject Business economics - Banking, Stock Exchanges, Insurance, Accounting, grade: Very Good, , course: MBA - FINANCE, language: English, abstract: The Ethiopian banking system is very much behind in the adoption of financial innovations compared to the rest of the world, however, the Ethiopian financial sector cannot remain an exception in expanding the use of the modern banking. The main objective of this study was to examine the effect of financial innovations on the profitability growth of commercial banks in Ethiopia. The specific objectives were to examine the effect of product innovation, bank specific factors and macro-economic factors on profitability growth in commercial banks. The study were used quantitative research, secondary data, and data was analyzed using both descriptive and inferential statistics and employed purposive sampling technique to select 12 banks for the study in the periods from 2016 to 2019. Multiple regression with the aid of STATA 14 software was used to examine in this study.