<![CDATA[The rapid digital transformation of the banking sector has become a strategic priority globally; however, its financial implications remain inconclusive, particularly in emerging economies. This study examined the relationship between digital transformation and bank performance outcomes, including profitability, risk-taking, and stability, among 45 commercial banks in Indonesia during the 2019–2025 period. Digital transformation was measured using the 20-item Digital Maturity Index (DMI20), which was constructed from annual report disclosures and aligned with the Financial Services Authority (Otoritas Jasa Keuangan [OJK]) regulatory framework. Using a quantitative panel-data regression approach with bank-clustered robust standard errors, this research analyzed unbalanced panel data consisting of up to 315 bank-year observations. The findings showed that digital maturity was not significantly associated with Return on Assets (ROA), Net Interest Margin (NIM), Non-Performing Loans (NPL), or Loan-to-Deposit Ratio (LDR). However, digital maturity exhibited a negative association with Return on Equity (ROE) and a positive association with the Loan-Loss Provision (LLP) ratio at the 10% significance level. Most notably, digital maturity demonstrated a positive and statistically significant relationship with the bank Z-score at the 5% significance level, indicating greater resilience against insolvency risk. These results suggested that the primary financial benefit of digital transformation in the Indonesian banking context was reflected in enhanced stability and risk governance rather than immediate profitability improvements. The study contributed to the literature by providing empirical evidence from an emerging economy using a comprehensive digital maturity measure aligned with regulatory standards. The findings have practical implications for bank management in integrating digital transformation with risk management frameworks and for regulators in developing digital maturity assessment requirements that emphasize substantive disclosure and risk governance. Future research should employ longer observation periods, internal digital investment data, alternative measurement approaches, and mixed-method designs to further validate and extend these findings.]]>
