PENGARUH EFISIENSI OPERASIONAL, KREDIT BERMASALAH, DAN RASIO KECUKUPAN MODAL PADA PERBANKAN DI JAWA TIMUR PERIODE 2016-2021

Abstract

Rapid development in the banking world has higher complexity and affected the bank's performance. This research aimed to examine the effect of operational efficiency (BOPO), Non-Performing Loan (NPL), and Capital Adequacy Ratio (CAR) on Profitability (ROA) in East Java banking companies listed on the Indonesia Stock Exchange (IDX).The research was descriptive-quantitative. Moreover, the data were in the form of companies’ annual statements listed on IDX. The data collection technique used purposive sampling, in which the sample was based on the criteria given. In line with that, there were 14 samples with 84 banking data listed on the Indonesia Stock Exchange during 6 years (2016-2021). Furthermore, the data analysis technique used multiple linear regression with SPSS (Statistical Product and Statistical Solution) 25. The result concluded that operational efficiency had a negative effect on profitability. Likewise, Non-Performing Loan had a negative effect on profitability. On the other hand, Capital Adequacy Ratio did not affect profitability.