Abstract
Banks as financial intermediaries are important financial institutions for economic activities in a country. It is important for banks to have good financial performance. Bank performance is reflected in each banks financial statements or published banking reports, taking into account the banks profitability. The purpose of this study was to determine the effect of loan to deposit ratio (LDR), non performing loan (NPL), operational efficiency ratio, net interest margin (NIM), and capital adequacy ratio (CAR). This research was conducted at the Foreign Exchange National Private Commercial Bank listed on the Indonesia Stock Exchange in 2016-2018. Sample taken were 22 companies with a total of 66 research sample, through non-probability methods with purposive sampling technique. The analysis technique used in this research is multiple linear regression. The results shows that LDR and NPL did not affect on profitability. While operational efficiency ratio, NIM, and CAR significant affect on the profitability.
 Keywords: LDR; NPL; Operational Efficiency Ratio; NIM; CAR.
Highlights
PENDAHULUAN Bank sebagai financial intermediary memiliki fungsi dalam kegiatan menghimpun dana dari masyarakat dalam bentuk simpanan dan menyalurkan kembali kepada masyarakat dalam bentuk kredit untuk meningkatkan taraf hidup rakyat banyak (Kasmir, 2014:24)
The results shows that Loan to Deposit Ratio (LDR) and Non Performing Loan (NPL) did not affect on profitability
Could Profitability, Activity and Use of Equity Finance Increasing DuPont Model of Return on Equity?
Summary
Uji normalitas bertujuan untuk mengetahui apakah residual dari model regresi yang dibuat berdistribusi normal atau tidak. Untuk menguji apakah data yang digunakan normal atau tidak dapat dilakukan dengan menggunakan uji Kolmogorov Smirnov. Berdasarkan Tabel 2, dapat dilihat bahwa nilai Kolmogorov. Smirnov (K-S) sebesar 0,08, sedangkan nilai Asymp. Hasil tersebut mengindikasikan bahwa model persamaan regresi tersebut berdistribusi normal karena nilai Asymp. (2-tailed) 0,20 lebih besar dari nilai alpha 0,05 Sig. (2-tailed) 0,20 lebih besar dari nilai alpha 0,05
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