THE INFLUENCE OF CAR, NPL, AND LDR ON ROA IN DIGITAL BANKING LISTED ON THE INDONESIA STOCK EXCHANGE

Abstract

The era of digital banking 4.0 presents opportunities for banks to innovate in service to customers. This study aims to analyze the influence of CAR, NPL, and LDR on ROA in digital banks listed on the Indonesia Stock Exchange (IDX) for the 2021–2024 period. This study uses a quantitative approach with multiple linear regression method. The sample consisted of 7 digital banks selected through saturated sampling techniques. The t-test results showed that CAR and NPL had no significant effect on ROA, whereas LDR had a significant effect on ROA. The F test showed that simultaneously the three independent variables had a significant effect on ROA. A determination coefficient value (R²) of 44.6% indicates that ROA can be explained by CAR, NPL, and LDR of 44.6%, while the rest is influenced by other factors. This research shows that digital banking must pay more attention to the effectiveness of fund distribution through LDR to improve profitability performance.