Authors : Jamal Hanaffy

Volume/Issue : Volume 8 - 2023, Issue 12 - December

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DOI : https://doi.org/10.5281/zenodo.10435454

Abstract : This study was conducted to examine the effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR) and Operating Expenses on Operating Income (OEOI) variables on the Profitability of Digital Banks listed on the IDX for the 2019-2022 period. The sample of this study is a digital bank listed on the IDX, namely 4 companies. This study uses the documentation method obtained from financial reports published on the website www.idx.co.id. The analysis technique used is multiple linear regression. The results showed that: (1) CAR has a significant positive effect on profitability, (2) NPL has no significant effect on profitability, (3) LDR has a negative and significant effect on profitability, and (4) Operating Efficiency Ratio has a negative and significant effect on profitability.

Keywords : Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operating Efficiency Ratio (BOPO), Profitability.