Abstract: This study analyzes bank-specific, industry-specific and macroeconomic determinants that affect bank profitability. Dynamic panel analysis is applied on the sample of 14 banks in the Palestinian banking system in the period between 2008 and 2018. Regression model was used to do the empirical analysis and develop the econometric model consisted of one dependent variable and nine independent variables. According to the obtained results, among bank-specific factors of bank profitability, the most important one is operating expense management. Regarding the external variables, economic growth show significant effect on bank profitability in Palestine.