<![CDATA[This study analyzes the effect of credit risk (NPL), capital adequacy (CAR), and liquidity (LDR) on profitability (ROA) of conventional banks listed on the Indonesia Stock Exchange for the 2019-2024 period. Using a quantitative approach with panel data regression and Random Effect Model, the sample consists of 33 banks with 198 observations. The results show that NPL has a negative and significant effect on ROA with a coefficient of -0.328903 (p-value 0.0000), indicating that increased non-performing loans force banks to raise loan loss provisions, ultimately reducing net income. CAR shows a positive but insignificant effect with a coefficient of 0.005816 (p-value 0.3843), suggesting that maintaining a high capital buffer does not automatically improve profitability if capital is not deployed productively. Similarly, LDR shows a positive but insignificant effect with a coefficient of 0.008889 (p-value 0.0820), implying that aggressive lending without adequate credit quality may not yield expected profit improvement. Simultaneously, NPL, CAR, and LDR significantly affect ROA with F-statistic probability of 0.000000. The R² of 0.191442 indicates that the three variables explain 19.14% of profitability variation, while the remaining 80.86% is explained by other factors outside the model.]]>
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