The role of banking institutions in the Republic of Kosovo remains on transferring of funds from those who have a surplus to those who have a deficit. Banks make significant contribution to increase the economy in order to provide an increase on consummation, investments, savings, contributing directly to the increase in the well-being of families and the economy in general. The individuals and families encounter financial constraints or aim to expand their investments, they frequently seek support from banking institutions. Despite the small economic growth in the Republic of Kosovo, the banking sector has expanded, witnessing an increase in profits and deposits over the years. This paper reflects the financial indicators in the years from 2010 to 2022. The study utilized data sourced from the Central Bank of the Republic of Kosovo, and for analysing the impact of these variables on banking system profit, we used econometric methods such as OLS, analysis of correlation and trend analysis. The selected indicators for analysis include Profitability, ROA, ROE, Deposits, Loans, NPL, Employees, Branches, and GDP. The results show that increases in deposits lead to increase profitability, whereas increases in loans have a negative impact on profitability within the banking system.