This study examines the determinants of bank profitability, focusing on bank-specific, industry-specific, and macroeconomic factors. Using a dynamic panel data model and a GMM technique, the authors analyze data from Greek banks over the period 1985-2001. The results indicate that profitability is procyclical but with an asymmetric effect, being more positive in the upper phase of the business cycle. Bank-specific factors, except for size, significantly affect profitability, with capital, credit risk, productivity, and expenses management playing significant roles. Industry-specific factors, such as ownership and concentration, do not significantly influence profitability. The macroeconomic environment, particularly inflation and interest rates, also affects profitability. The study suggests that the Greek banking sector is imperfectly competitive, and the relationship between profitability and the business cycle is complex.This study examines the determinants of bank profitability, focusing on bank-specific, industry-specific, and macroeconomic factors. Using a dynamic panel data model and a GMM technique, the authors analyze data from Greek banks over the period 1985-2001. The results indicate that profitability is procyclical but with an asymmetric effect, being more positive in the upper phase of the business cycle. Bank-specific factors, except for size, significantly affect profitability, with capital, credit risk, productivity, and expenses management playing significant roles. Industry-specific factors, such as ownership and concentration, do not significantly influence profitability. The macroeconomic environment, particularly inflation and interest rates, also affects profitability. The study suggests that the Greek banking sector is imperfectly competitive, and the relationship between profitability and the business cycle is complex.