Journal of International Economics Research JIER Pending 10.54216/JIER https://www.americaspg.com/journals/show/4219 2025 2025 PhD, Senior Lecturer, Department of “Economics and Management”, Tashkent State University of Economics, Uzbekistan Sardor Sardor Head of department at “BRB” JSC bank, Uzbekistan Iskandar Yuldoshev This study examines the impact of digital transformation on the operational efficiency and financial performance of commercial banks in Uzbekistan, focusing on key indicators such as the Cost-to-Income Ratio (CIR) and Return on Assets (ROA). Utilizing regression analysis based on 63 observations, the results reveal that digital transformation significantly enhances bank performance. A 1% increase in IT investment share reduces CIR by 0.53% in the subsequent year, while mobile banking adoption (coefficient 1.224) and IT-related revenue (coefficient 0.22) substantially improve ROA. Expanding ATM networks also lowers CIR by 0.191 per unit, highlighting the role of automation. However, state-controlled banks exhibit lower efficiency, with a 4% reduction in ROA and higher CIR due to social obligations. Inflation and bank card growth showed statistically insignificant effects on CIR, underscoring the stable, long-term benefits of digital technologies. The findings emphasize the critical role of IT investments, mobile banking, and digital retail channels in reducing operational costs and boosting profitability, offering actionable insights for enhancing the competitiveness of Uzbekistan’s banking sector. 2025 2025 01 15 10.54216/JIER.010201 https://www.americaspg.com/articleinfo/42/show/4219