The purpose of this study is factors affecting financial performance of saving and credit cooperative union in a case of Amhara region, Ethiopia. The study employed quantitative research approach and explanatory (descriptive) research design. The data is quantitative secondary panel data obtained from Amhara region cooperative promotion agency bureau. The research sampling is used purposive sampling techniques due to data accessibility. The data analysis were employed descriptive statistics, correlation analysis and econometrics model. The descriptive statistics used as mean, standard deviation, minimum, maximum and line graph.The econometrics model specification used as random effect model for this research study. Accordingly, this study investigated the impact of financial performance of Sacco unions’ factor: asset size, membership, dividend policy, debt ratio and operation cost efficiency as independent variable and return on asset and return on equity as dependent variable. The coefficient of determination is between groups 95.34%. This means the response variable was 95.34 percent, explained by explanatory variables. The regression analyses revealed that asset size, membership, debt ratio are statistically significant and negatively related with return on asset; whereas, dividend policy is statistically significant and positively related with return on asset. Thus, asset size, membership, debt ratio and dividend policy are important factor return on asset. On the other hand, membership and debt ratio are statistically insignificant and negatively related with return on equity and asset size and operating cost efficiency are statistically insignificant and positively related with return on equity. However, dividend policy is statistically significant and positively related with return on equity. Hence, dividend policy is important factor for return on equity of Sacco unions. This research study recommends to the management, board of director, government, to improve the profitability of Sacco unions by to adjust the level of debt ratio, increased loan able fund, and supervised Sacco performance.