The effect of loan default on the profitability of commercial banks in Mogadishu

The impact of loan default on the profitability of commercial banks in Mogadishu, Somalia has become a major concern for the banking sector in Somalia in recent years. Loan defaults have been identified as one of the primary causes of reduced profitability in the banking sector. The study showed that loan default has negative impact on the profitability of commercial banks as shown by the respondents, 35.00%(21) Strongly agreed, 22.00%(13) Agreed, 18.00%(11) 20.00%(12) Neutral, while 5.00%(3) Disagreed.