Analysis of Factors Affecting Bank Profitability with Total Assets Minimum 1 (One) Billion

Abstract

This research was conducted to examine the effect of variable banking ratio, funds interest rate, interest spread, fee based income ratio and inefficiency ratio of Profitability (ROA). Profitability is used to measure the effectiveness of management based on results generated from the loan repayment and investment. The ratio is important for the bank's profitability is Return On Assets (ROA). Financial ratios that affect the ROA is the banking ratio, funds interest rate, interest spread, fee based income ratio and inefficiency ratio. The sampling technique used was purposive sampling with the criteria of commercial bank serving the financial statements. The analysis technique used is the classical assumption of the analysis, multiple regression analysis and hypothesis test with a level of significance of 8,841%. The results of the research simultaneously (test F) states that the banking ratio, funds interest rate, interest spread, fee based income ratio and inefficiency ratio jointly affect the profitability (ROA) of banks. While the results show that the correlation coefficient between profitability (ROA) of banks with 5(five) independent variables of 60,336%. And the result of research partially (t) states that the variable interest spread did not have a significant effect on profitability (ROA) of banks. And variable banking ratio, funds interest rate, fee based income ratio and inefficiency ratio significant effect on profitability (ROA) of banks.