Banking plays an important role in economies. The banking sector, as the classic and most influential financial intermediary, facilitates economic transactions. The financial sector in the world country has undergone changes over these years observing the changes in the financial structure environment and economic conditions. Therefore, banks represent a very important point for the financial system and play an important role as a control and contribution to the growth of the economic sector. A variety of groups are interested in the profitability of banks for various reasons. Bank shareholders would like to know whether the value of their investments is high or low. Investors also use current and past performance to predict the future price of publicly traded bank stocks. The management of the bank as a shareholder fiduciary is evaluated and compensated based on how much their decisions and planning have contributed to the growth of their banks' assets and profits. Bank employees also care about profits, as their salaries and promotions are often tied to their banks' profitability performance. Depositors use bank performance and profitability as indicators of safety for their deposits with banks. Finally, the business community and the general public are concerned about the performance of their banks to the extent that their economic prosperity is tied to the success or failure of their banks. Bank profitability has always attracted the interest of academics, economists and politicians. With increasing regulation during the global financial crisis, however, understanding what drives bank profits is increasingly crucial. Literature that has examined bank profitability in many countries in the l...... middle of paper ......inga (1999) and Pasiouras and Kosmidou (2007). The above estimate has left some questions related to bridging the gap by attempting to identify and measure the factors that determine the profitability performance of commercial banks in Malaysia. What are the bank-specific determinants and the influence of macroeconomic determinants on the profitability of banks in Malaysia compared to other countries? Does the capitalized bank contribute more to bank performance than other variables? Have the relationships between the determinants of bank profitability changed during the financial crisis? This study therefore intends to examine the bank specific and macroeconomic determinants on bank profitability, the impact of capital and financial crisis on bank profits. To answer the research questions, the thesis selected 27 commercial banks in Malaysia, including local and foreign banks, to fill this gap.