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This is a Quantitative study (also classified as: Multiple Regression Analysis).

September 10, 2025Open Access

The Effect of Financial Performance Ratios on Conventional Bank Profitability in Indonesia Stock Exchange

Key Points

Profitability is significantly influenced by BOPO and LDR among conventional banks in Indonesia.
Analysis using multiple regression identified that CAR and NPL did not affect ROA.
Data from financial statements of fourteen banks was analyzed to determine these relationships.
F Test indicated simultaneous effects of CAR, NPL, BOPO, and LDR on ROA.

Abstract

This study aims to analyze the effect of the ratio of financial performance to the profitability of private conventional commercial banks listed on the Indonesia Stock Exchange. Retrieval of data using financial statements from fourteen conventional commercial banks. The independent variables used include Capital Adequacy Ratio (CAR), Operational Income Operating Expenses (BOPO), Non Performing Loans (NPL), and Loan to Deposit Ratio (LDR). The profitability variable is proxied by Return on Assets (ROA). This type of research is quantitative that uses secondary data. The analysis was carried out using multiple regression analysis. The results showed that, CAR and NPL had no effect on ROA, while BOPO and LDR had a significant effect on ROA. Then the F Test results show that CAR, NPL, BOPO, and LDR simultaneously influence ROA

The Effect of Financial Performance Ratios on Conventional Bank Profitability in Indonesia Stock Exchange

Key Points

Abstract

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