<![CDATA[Objective : This study analyzes the effect of Non-Performing Loans (NPL) and Liquidity (LDR) on bank Profitability (ROA), with Operational Efficiency (BOPO) as an intervening variable, motivated by inconsistent findings in previous studies and the growing importance of operational efficiency in the digital era. Methods:This explanatory quantitative study uses secondary data from banking companies listed on the Indonesia Stock Exchange (IDX) for 2020–2025. Purposive sampling produced 26 companies with 156 firm-year observations, reduced to 122 after outlier treatment, analyzed through multiple linear regression, path analysis, and the Sobel test using SPSS. Results: NPL has a positive and significant effect on BOPO (β = 0.558), while LDR has no significant effect on BOPO (β = 0.019). Neither NPL nor LDR significantly affects ROA directly (β = 0.020 and β = -0.030), whereas BOPO has a negative and significant effect on ROA (β = -0.948). BOPO fully mediates the effect of NPL on ROA (Sobel t = 6.918 > 1.980) but does not mediate the effect of LDR on ROA (Sobel t = 0.253 < 1.980). Adjusted R² is 22.7% for Equation 1 and 83.7% for Equation 2. Novelty: This study positions operational efficiency as a mediating momentum in the digital era, showing that credit risk depresses bank profitability mainly through the operational-cost channel rather than directly, an angle rarely combined with a path-analysis and Sobel-test framework in prior Indonesian banking studies.]]>
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