We provide new evidence on the effects of adopting a common European currency on bank profitability in Central and East ern Europe (CEE). We construct a panel of 1033 bank-year observations across 11 countries between 2006 and 2020. Our results suggest that the effect of joining the euro area on bank profitability is not statistically significant over a longer pe riod, but that the euro exerts downward pressure on banks’ profits in a stable economic climate. Additionally, we contrib ute to the existing literature on determinants of bank profitability in the CEE region and confirm that capitalisation and bank size have a positive influence, while liquidity and the loans-to-assets ratio have a negative influence on profitability.