This paper studies that whether the profitability from banking industry comes from the market power or it is a result of their high efficiency level. For this act, we have exerted structuralism and Chicago models relative to X-and scale efficiency. Our sample covers the banks in the OPEC countries in the period 1995-2009. The results for all countries in our sample show that X-and scale efficiency have the positive and large impact on profitability but, concentration variable decreases profitability. The results above support the market power hypotheses are rejected for the OPEC countries, while efficiency gains appear to have positive and important impact on banking profitability.

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