PENGARUH UKURAN BANK DAN DIGITAL BANKING TERHADAP PROFITABILITAS DENGAN EFISIENSI OPERASIONAL SEBAGAI VARIABEL MEDIASI PADA SEKTOR PERBANKAN DI INDONESIA

This study analyzes the effect of bank size and digital banking on profitability with operational efficiency as a mediating variable in the Indonesian banking sector. Profitability is measured using Return on Equity (ROE), bank size is proxied by total assets, digital banking is measured based on the level of adoption of digital services (electronic money), and operational efficiency is measured using the ratio of Operating Expenses to Operating Income (BOPO). The research sample used purposive sampling with the criteria of Category 4 banks registered with the Financial Services Authority and publishing complete quarterly financial reports for the 2021–2024 period, resulting in 7 banks with 112 observations. The analysis method used Structural Equation Modeling (SEM) with a path analysis approach. The results show that bank size has a significant positive effect on profitability, while operational efficiency has a significant negative effect on profitability. Digital banking does not have a significant direct effect on profitability. Bank size does not have a significant effect on operational efficiency, but digital banking has a significant negative effect on BOPO, indicating an increase in efficiency. Bank size was found to have a significant positive effect on digital banking. Mediation testing revealed that operational efficiency did not mediate the relationship between bank size and profitability. Digital banking mediates the relationship between bank size and operational efficiency, but does not mediate the relationship between bank size and profitability. The findings indicate that although bank size contributes to profitability, the benefits of digital banking are more dominant in increasing operational efficiency without a direct impact on profitability. Banks need to optimize their sustainable digitalization strategies to support long-term financial performance.