Effect of CAR, LDR, and BOPO on Profit Growth through Firm Size as an Intervening Variable in Conventional Banks Listed on the Indonesia Stock Exchange (IDX) in 2024

This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Operational Efficiency Ratio (BOPO) on Profit Growth with Firm Size as an intervening variable in conventional banks listed on the Indonesia Stock Exchange (IDX) in 2024. This causal-associative quantitative study selected a sample of 29 conventional banks using a purposive sampling method. Secondary data were processed and analyzed using IBM SPSS software through Path Analysis and the Sobel Test. The results showed that partially CAR, LDR, and BOPO had no effect on Firm Size, and CAR, LDR, and Firm Size had no effect on Profit Growth; however, BOPO was proven to affect Profit Growth, while Firm Size was unable to mediate the effect of CAR, LDR, or BOPO on Profit Growth. The implication of this study emphasizes that the profitability level and profit growth of conventional banks heavily depend on management's operational efficiency in directly controlling the BOPO ratio, regardless of the firm size scale.