Profitability Analysis of State-Owned Banks in Indonesia

Abstract

This study aims to determine how the effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), and Operating Expenses on Operating Income (BOPO) on profitability in the specification of Return On Assets (ROA) at BUMN banks in Indonesia. The state-owned banks in Indonesia include Bank Rakyat Indonesia, Bank Negara Indonesia, Bank Tabungan Negara, and Bank Mandiri. The data analysis method used in this study is the panel data regression analysis method with the selected Fixed Effect Model. Hypothesis testing is done using the Coefficient of Determination Test (R2), Simultaneous Significance Test (F Test), and Partial Test (T Test). Data collection uses secondary data in the form of annual reports with panel data 2001-2022.The results of this study indicate that simultaneously, CAR, NPL, and BOPO have a significant effect on ROA. Partially, CAR has a negative and significant effect on ROA, NPL has a negative and significant effect on ROA. BOPO has a negative and significant effect on ROA. The coefficient of determination (R2) in this study is 81.44% and the remaining 18.56% is the influence of other variables that are not in the model or that are not included in the research variables.