THE EFFECT OF CAPITAL ADEQUACY RATIO (CAR), OPERATIONAL COSTS ON OPERATIONAL INCOME (OCOI), NON PERFORMING LOAN (NPL), LOAN TO DEPOSIT RATIO (LDR), AND BANK SIZE ON BANKING PROFITABILITY IN INDONESIAN STOCK EXCHANGE IN 2014-2018

Abstract

Abstract: The Effect of Capital Adequacy Ratio (CAR), Operational Costs on Operational Income (OCOI), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), and Bank Size on Banking Profitability in Indonesian Stock Exchange in 2014-2018. This study aims to determine the effect of the variable Capital Adequacy Ratio (CAR), Operational Costs on Operational Income (OCOI), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), and Bank Size on Banking Profitability. The study was conducted by taking secondary data through the Indonesia Stock Exchange. The sampling technique in this study was purposive sampling technique and obtained a sample of 27 banks. The result showed that: (1) CAR had a positive and significant effect on ROA, (2) OCOI has a negative and significant effect on ROA, (3) NPL has no negative effect and is not significant on ROA, (4) LDR does not have a positive and significant effect on ROA, (5) Size has a positive and significant effect on ROA, (6) CAR, OCOI, NPL, LDR and Size together affect on ROA.

Keywords: Capital Adequacy Ratio (CAR), Operational Costs on Operational Income (OCOI), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Size, Profitability.