<![CDATA[This study analyzes the factors affecting bank profitability in Indonesia during 2012–2023 using quarterly data from 50 banks listed on the Indonesia Stock Exchange. Bank profitability is calculated by Return on Assets (ROA) and Return on Equity (ROE), with explanatory variables including capital adequacy ratios (CAR) measured by total capital to total assets (TCTA) and total capital to risk weighted assets (TCRWA), equity ratios (EQTA), cost-to-income ratios (CIR), debt-to-equity ratios (DER), bank size (SIZE), and non-performing loans (NPL). Panel regression shows that CAR, EQTA, and DER are insignificant, while CIR, SIZE, and NPL negatively affect profitability. Machine learning techniques (Random Forest and XGBoost) confirm CIR, NPL, and SIZE as key factors. The findings highlight the importance of operational efficiency and credit risk management for improving bank profitability, offering insights for managers and policymakers.]]>
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