Does the Capital Adequacy Ratio (CAR), Non Performing Loans (NPL), and Net Interest Margin (NIM) Affect the Profitability of Banks? : Case of Indonesia
This study aims to determine the effect of the variable Capital Adequacy Ratio (CAR), Non Performing Loans (NPL), and Net Interest Margin (NIM) on bank profitability as proxied by Return on Assets (ROA). The population in this study are all banking companies listed on the Indonesia Stock Exchange in the 2014-2018 period. While the samples in this study were 34 companies using the purposive sampling method. This type of research is quantitative with the analysis technique used is a panel data regression technique to determine whether there is a significant influence of one dependent variable (dependent) and more than one independent variable (independent). Based on the research conducted, we found that the Capital Adequacy Ratio and NetInterest Margin have a significant effect on Return on Assets in a positive direction, while the Non Performing Loan variable also has a significant effect on Return on Assets, but with a negative influence.