<![CDATA[Introduction/Main Objectives: This study aims to analyze the effect of Outstanding Loans, Non-Performing Loans, and Loan Growth on profitability in the Fintech Peer-to-Peer (P2P) Lending industry in Indonesia. The fintech P2P lending industry in Indonesia has grown rapidly, but profitability performance has shown instability despite increasing loan disbursement, indicating an imbalance between loan growth and credit quality. Novelty: This research offers originality through the use of monthly aggregate data from the Indonesian fintech P2P lending industry, analyzed within both short-term and long-term frameworks using the Autoregressive Distributed Lag (ARDL) approach, providing a more comprehensive understanding of the dynamics of financing, credit quality, and profitability. Research Methods: This study employs a quantitative approach using 36 monthly aggregate time-series observations from January 2022 to December 2024, obtained from the Fintech Lending Statistics Report published by the Financial Services Authority (OJK). The analysis utilizes the Autoregressive Distributed Lag (ARDL) model to examine both short-run and long-run relationships among the variables. Finding/Results: The results indicate that in the short run, Outstanding Loans have a negative and significant effect only at lag 3, while Non-Performing Loans and Loan Growth show no significant effects. In the long run, Outstanding Loans and Non-Performing Loans have negative and significant effects on profitability, whereas Loan Growth has a positive but insignificant effect. Conclusion: Profitability depends more on effective loan management and credit quality than on loan growth alone, making sound credit risk management essential for sustainability.]]>
