This study considers financial performances of commercial banks of Turkey in the period of 2003 and 2010. The financial performance of banks is measured using an indexing model developed in this study. The model considers fundamental performance characteristics of banks and chooses related explanatory factors determining these characteristics. The study covers 13 commercial banks of Turkey listed in Istanbul Stock Exchange. All banks for each year are ranked by employing the proposed indexing model. Moreover, the results of proposed performance measurement system are compared to annual net income and ROE of banks.