Non Performing Loan, Loan to Deposit Ratio, Net Interest Margin, BOPO, Capital Adequacy Ratio, Return on Asset and Return on Equity

Abstract

ABSTRACT This research is conducted to know the influence of Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Net Interest Margin (NIM), BOPO, Capital Adequacy Ratio (CAR) to Return on Asset (ROA) and Return on Equity (ROE ) listed on the Indonesia Stock Exchange (IDX) since 2012 until 2016. The data used in this study is obtained from the Financial Statements of Banking Companies Listed on the Stock Exchange for the period of 2012-2016 issued by Bank Indonesia (BI) and the Financial Services Authority (OJK). After passing through the purposive sample stage, then the data is worthy of use as many as 28 Banking Companies taken in the observation of 5 years with the number of 140 samples. To answer the hypothesis proposed in this research, data is analyzed using Path Analysis with AMOS program. The result of research indicate that Non Performing Loan have negative and significant effect to Return on Asset and Return on Equity, Loan to Deposit Ratio have positive and significant effect to Return on Asset and Return on Equity, Net Interest Margin have positive and significant effect to Return on Asset and Return on Equity, BOPO have a negative and significant effect on Return on Asset and Return on Equity, and Capital Adequacy Ratio have positive and significant effect on Return on Asset and Return on Equity. Banking is expected to reduce the level of Non Performing Loan (NPL), optimize the level of Loan to Deposit Ratio (LDR), calculate the cost of funds carefully so as to obtain Net Interest Margin (NIM) optimal, able to suppress the amount of BOPO and pay attention to the provisions given Bank Indonesia related capital adequacy ratio (CAR), so as to increase Return on Asset (ROA0 and Return on Equity (ROE).