The Effect of Non-Performing Loan and Loan to Deposit Ratio on Return on Assets at PT. Bank Mandiri, Tbk Period 2011-2020

Abstract

This study aims to determine the effect of Non Performing Loans and Loan to Deposit Ratio on Return on Assets at PT. Bank Mandiri, Tbk. Period 2011-2020. The method used is explanatory research. The analysis technique uses statistical analysis with regression testing, correlation, determination, and hypothesis testing. The results of this study that Non Performing Loans have a significant negative effect on Return on Assets of 53.5%; hypothesis testing is obtained t count> t table or (-3.033> -2.306). Loan to Deposit Ratio has a significant positive effect on Return on Assets of 48.0%; hypothesis testing is obtained t count> t table or (2.716> 2.306). Non Performing Loan and Loan to Deposit Ratio simultaneously have a significant effect on Return on Assets, the regression equation is Y = 0.534 + -0.247X1 + 0.045X2 and a determination value of 66.9%, hypothesis testing obtained F value> F table or (7.090 > 4,070).