This dissertation investigates the factors influencing the profitability of European banks between 2000 and 2015. The study employs secondary data, including annual reports from 12 European banks, and utilizes statistical tools like descriptive analysis, correlation, and regression to identify key drivers of profitability. The research aims to determine profitability trends, evaluate influencing factors, and recommend strategies for banks to manage micro and macro factors. The findings suggest that loan ratios and the quality of the credit portfolio significantly impact profit margins. The report includes a comprehensive literature review exploring internal and external factors, such as management policies, expenses, interest rates, bank structure, credit risk, liquidity, ROA, ROE, bank size, solvency, deposit ratios, GDP, and inflation. The research methodology involves both qualitative and quantitative approaches to data collection and analysis. The study concludes with recommendations for European banks to enhance their profitability and provides valuable insights for future research in the field. The dissertation is structured into five chapters: introduction, literature review, research methods, findings and discussion, and conclusion.