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     2026:7/3

International Journal of Multidisciplinary Research and Growth Evaluation

ISSN: (Print) | 2582-7138 (Online) | Impact Factor: 9.54 | Open Access

Digital Banking Transactions and Profitability in Indonesia: The Role of Internal and External Factors

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Abstract

The profitability of banks is significantly influenced by financial service providers, who play a crucial role in shaping overall performance. Several factors, both internal and external, as well as technological advancements, contribute to fluctuations in bank profitability. This study aims to analyze, test, and verify the impact of CAR, NPL, LDR, BOPO, company size, inflation, economic growth, internet banking transactions, and mobile banking transactions on the profitability of commercial banks listed on the Indonesia Stock Exchange between 2015 and 2019. Employing a quantitative approach, this research utilizes secondary data sourced from bank financial reports available on the IDX, as well as economic indicators, including inflation and economic growth data provided by the Central Bureau of Statistics (BPS). The sample selection employs a purposive sampling technique, resulting in the inclusion of six commercial banks in the study. Multiple linear regression is applied for technical data analysis. Findings indicate that CAR has a significant positive influence on profitability, while BOPO, economic growth, and mobile banking transactions also exhibit notable effects. However, NPL, LDR, company size, inflation, and Internet banking transactions do not appear to have any significant impact on bank profitability. 

How to Cite This Article

Munari Munari, Diah Hari Suryaningrum (2025). Digital Banking Transactions and Profitability in Indonesia: The Role of Internal and External Factors . International Journal of Multidisciplinary Research and Growth Evaluation (IJMRGE), 6(3), 859-870.

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