Abstract

This study aims to analyze the effect of bank size and capital adequacy ratio on profitability with non-performing loan ratios as moderating variables in banking companies. This study is used the quantitative research approach with the causality research design. The results of the analysis show that the bank size and Capital Adequacy Ratio have a positive and significant effect on profitability in banking companies listed on the Indonesia Stock Exchange during 2016-2020 period by using the bootstrapping method. Then the results analysis of credit risk towards the bank size and Capital Adequacy Ratio are not able to moderate profitability in banking companies that listed on the Indonesia Stock Exchange during 2016-2020 period by using the bootstrapping method. The conclusion of the research is profitability in the bank’s company can be influenced by the size of bank, capital adequacy ratio, and cannot moderate by the credit risk or non-performing loan.

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