Abstract
This explanatory research aims to study an association between the factors affecting the performance of banks working in Pakistan. The current study was conducted using a cross-sectional research design, data for this study was collected from 5 private banks of Lahore, Pakistan. A total sample of three hundred bankers was recruited by using a random sampling technique and their ages ranged between 25-45 years. For the analysis of the hypothesis, diverse statistical instruments like PROCESS analysis for mediation and Pearson Product Moment correlation are applied. The results of the study show that employee loyalty, as well as service quality, mediates an association between employee empowerment and financial performance. Numerous other variables influence the financial performance of banks which are not included in this study. The proposed model guides the management in analyzing the service sector's performance.