To be competitive in their business, many of Indonesian Commercial Banks create strategic initiatives that are managed in form of projects and expect that the impact of this projects will bring quantified value to the organization in form of firm performance. Nevertheless, it is important to know organizations capability and project prioritization in delivering those projects so that the quantified value can be optimized. This paper aims to explore how the project portfolio management supports the project delivery capabilities through PMO to respond the environmental uncertainties and how it affects the bank performance that is measured using Return on Asset (ROA). Data were obtained from 74 respondents representing each of 74 commercial banks and analysed using the partial least squares structural equation modelling software SmartPLS 3.0. Study was concluded that project delivery capabilities had a significant impact on ROA in banks with larger equity category. This empirical research reveals that the environmental uncertainties are responded by the banks with bigger equity category (3 and 4) through implementing the right strategic initiatives in form of project that is managed with sufficient project delivery capabilities through PMO and significantly affecting the ROA. This phenomenon, however, is not reflected in Commercial Banks with smaller equity category (1 and 2). The result of this study shall provide insights to Indonesian Bank Regulatory to provide governance in managing strategic initiatives in the form of projects to the Indonesian Commercial Banks.