<![CDATA[Purpose – This study aims to analyze the influence of digital transformation, capitalization, and credit risk on the profitability of banking companies listed on the Indonesia Stock Exchange (IDX) during the 2019–2024 period. Design/methodology/approach – This explanatory quantitative study uses a census or saturated sampling method, selecting 16 banking companies from a population of 47 listed banks. The data were analyzed using descriptive statistics, classical assumption tests, multiple linear regression analysis, and hypothesis testing with SPSS version 27. Findings – The results show that digital transformation does not have a significant effect on profitability. In contrast, capitalization and credit risk significantly influence profitability. These findings indicate that financial stability factors remain more influential than digital initiatives in determining banking profitability. Originality/value – This study contributes to banking performance literature by examining the simultaneous role of digital transformation, capitalization, and credit risk in influencing profitability within Indonesia’s banking sector during a period of rapid digitalization. The findings provide strategic insights for banks to strengthen digital capabilities, optimize capital structures, and improve risk management.]]>
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