Factors Affecting the Profitability of Banking Companies Listed in Indonesia Stock Exchange

DOI

10.2991/aebmr.k.220501.069How to use a DOI?

Keywords

Bank Profitability; Capital Adequacy Ratio; Non-Performing Loan; Net Interest Margin; Operational Efficiency

Abstract

The purpose of this research is to obtain empirical evidence of the effect of capital adequacy ratio, non-performing loan, net interest margin and operational efficiency on bank profitability which is represented by return on assets in banking companies listed on the Indonesia Stock Exchange in 2017-2019. This study uses purposive sampling as a sampling technique and uses 28 banking companies as research samples. The financial statements of banking businesses listed on the Indonesia Stock Exchange were utilized to compile the data for this study. Data processing in this study uses the Smart Pls30 program. The results of the study of capital adequacy ratio, non-performing loan, net interest margin are not significant to bank profitability, while operational efficiency has a significant effect on bank profitability.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Linda Santioso
AU  - Andreas Bambang Daryatno
PY  - 2022
DA  - 2022/05/11
TI  - Factors Affecting the Profitability of Banking Companies Listed in Indonesia Stock Exchange
BT  - Proceedings of the tenth International Conference on Entrepreneurship and Business Management 2021 (ICEBM 2021)
PB  - Atlantis Press
SP  - 453
EP  - 460
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220501.069
DO  - 10.2991/aebmr.k.220501.069
ID  - Santioso2022
ER  -