Commercial banks play a great role in a given economy by investing the money they have collected from depositors in different loan opportunities. These institutions serve as a bridge between the capital surplus parties and capital deficit parties. In this study, explanatory research design and quantitative research approaches were adopted to achieve the research objectives. The study used secondary data which is financial reports covering the period from 2012-2018 G.C for Fifteen Commercial banks that have been in the industry for more than 7 years. The data were analyzed using 105 observations by applying a panel regression model to examine the relationship between the dependent variable (ROA) and independent variables (Financial risks). To analyze the data correlation and multiple regressions analysis was done with a fixed effect panel regression model by using STATA 13 software.