PENGARUH NPL, BIAYA OPERASIONAL PENDAPATAN OPERASIONAL, LOAN TO DEPOSIT RATIO, DAN CAR TERHADAP ROA

Abstract

The purpose of this study was to test and analyze the determinants of profitability in the banking industry on the Indonesian Stock Exchange. The variables that determine the profitability of a bank as measured by Return on Assets (ROA) include: Non Performing Loans (NPL), Operating Costs for Operating Income (BOPO), Loan to Deposit Ratio (LDR), and Capital Adequacy Ratio (CAR). . The method of determining the sample in this research is purposive sampling. The data analysis technique in this study is multiple linear regression analysis. The results showed that NPL and BOPO had a negative effect on ROA, while LDR and CAR had a positive effect on ROA. The theoretical implication of this research is to increase the profitability of a bank, the bank management must be able to suppress NPL and OEOI, as well as increase LDR and CAR. The practical implication of this research is that bank management must always prioritize the principle of prudence in lending, and always increase efficiency in operations so that increased profitability can be achieved. Management must also be able to maintain an optimal level of lending and meet capital adequacy so as to increase profitability. Keywords: NPL, OEOI, LDR, CAR, and ROA