Analysis of funding strategy, credit performance, and banking profitability. (case study of cimb-niaga bank in indonesia)

Abstract

This study is to analysis funding strategy and credit performance, and its effect on Banking Profitability. The indicator of funding strategy measured with the ratio of time deposits with a total of third-party funds (DTPF) or a third-party fund structure (TPFS), credit performance measured by credit growth (CG) and non-performing loans rate (NPL), while banking profitability with return on assets (ROA). The descriptive and verification methods with the quantitative approach will be used in this research. Secondary data sources are from the quarterly published financial statements of the CIMB Niaga Bank in Indonesia of 2012 - June 2020 period, and multiple regression used for data analysis. The study results found TPFS partially has a negative but not significant effect on ROA. CG partially has a positive but not significant effect on ROA while NPL partially has a negative and significant effect on return on assets. Simultaneously TPFS, CG and NPL have a significant effect on ROA. The ROA is influenced by TPFS, CG, and NPL of 71.2% while the remaining 28.8% is influenced by other factors.