<![CDATA[Banks play a crucial role as financial intermediaries by mobilizing public funds and channeling them into productive lending activities to support economic growth. However, the profitability of conventional banks in Indonesia continues to fluctuate due to variations in credit distribution effectiveness and the level of non-performing loans. This study aims to examine the effect of the Loan to Deposit Ratio (LDR) and Non-Performing Loan (NPL) on Return on Assets (ROA) of conventional banks listed on the Indonesia Stock Exchange (IDX) during the 2020–2024 period. This research employed a quantitative approach using secondary data obtained from the annual financial reports of conventional banks. The sample consisted of 36 banks selected through purposive sampling, resulting in 180 observations. Data were analyzed using panel data regression with EViews software, including descriptive statistical analysis, panel data model selection, normality testing, and hypothesis testing. The findings reveal that the Loan to Deposit Ratio (LDR) has a positive and significant effect on Return on Assets (ROA), while the Non-Performing Loan (NPL) has a negative and significant effect on Return on Assets (ROA). Therefore, optimizing credit distribution and effectively controlling non-performing loans are essential strategies for improving bank profitability and maintaining sustainable financial performance.]]>
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