<![CDATA[Digital banking in Indonesia has grown considerably in recent years; however, profitability performance across banks has not followed a uniform pattern. Some banks have begun recording improvements in earnings, while others continue to face pressure from credit quality and operational costs. This condition indicates that growth in digital services does not always translate directly into improved profitability. Therefore, this study examines the effect of credit risk, liquidity, and operational efficiency on the profitability of digital banks in Indonesia. Profitability is measured using Return on Assets (ROA). Credit risk is measured by Gross NPL, liquidity by the Loan to Deposit Ratio (LDR), and operational efficiency by the operational cost-to-income ratio (BOPO). The data used consist of quarterly published financial statements from Bank Jago, Bank Neo Commerce, Allo Bank, and Bank Amar over the period 2022–2025, yielding 64 observations in total. The analysis method employed is panel data regression, with model selection conducted through the Chow Test and Hausman Test. Based on the test results, the Random Effect Model was selected. The findings show that Gross NPL has a positive and significant effect on ROA, LDR has a positive but insignificant effect on ROA, and BOPO has a negative and significant effect on ROA. These results indicate that the profitability of digital banks is more strongly influenced by the ability to control operational costs than by liquidity. The implication is that digital bank management needs to be more selective in managing technology, promotional, and customer acquisition costs so that business growth can proceed in balance with profitability improvement.]]>
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