<![CDATA[Profitability is one of the main indicators used to assess the performance and financial soundness of banks as financial intermediaries. The level of banking profitability is influenced by various factors, including internal factors such as managerial performance and external factors such as macroeconomic conditions that affect the stability of the financial system. This study aims to analyze the effect of internal factors, namely Net Interest Margin (NIM), Capital Adequacy Ratio (CAR), and Operating Expenses to Operating Income (BOPO), as well as external factors consisting of the BI Rate and inflation on bank profitability measured by Return on Assets (ROA) in Indonesian Commercial Banks classified as Core Capital Banks (KBMI) 3 and KBMI 4 during the period 2020–2025. This study employs secondary panel data obtained from banks’ annual reports and publications issued by the Financial Services Authority (Otoritas Jasa Keuangan/OJK). Panel data regression analysis using the Random Effect Model (REM) is applied to examine the relationship between the variables. The results indicate that internal and external factors simultaneously have a significant effect on ROA. Partially, NIM and the BI Rate have a positive and significant effect on ROA, while CAR, BOPO, and inflation have a negative and significant effect on ROA, indicating that banking profitability is influenced by internal bank performance as well as macroeconomic dynamics.]]>
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