| dc.description.abstract | The main purpose behind establishment of every business is to make profit. For the achievement of this objective various factors facilitates ease of attain it, size of the business being one of the main factors. Banks as well as other business aim at making profit despite their key role that they play in pushing forward the economic growth rates, through the mobilization of national savings and using them to finance productive economic sectors they also plays a major role as an engine and a key supporter to the country economy. It is generally argued that big firms possess economies of scale and better access to capital markets to achieve lower costs and higher returns. The study employed a descriptive design since the study concentrated on all commercial banks in
Kenya. Survey study was conducted to get detailed information on the relationship between size and the profitability of the firm. Secondary data was used. The data was obtained from the annual central bank reports, Market Intelligence magazine bank survey report and annual financial accounts of the commercial banks. This ensured that the information obtained was not biased and depicts the real situation of the bank’s performance. From the findings, the study found that there was positive relationship between profitability of banks varied with customer base, number of branches, deposit liabilities and market share as there was high positive correlation coefficient, the study further revealed that there was greater variation of profitability of commercial banks as results of change with customer base, number of branches, deposit liabilities and market share in all tiers. The study recommends that in order for commercial banks to increase their performance (profitability) there is need from commercial banks to increase size by increasing various aspect of customer base, number of branches, deposit liabilities and market share | en |
