THE INFLUENCE OF BANK FINANCIAL RATIOS TOWARD PROFITABILITY IN STATE-OWNED BANKS (PERIOD OF 2003-2015)

Abstract

This research investigate the influence of bank financial ratio toward profitability in the state-owned banks (Persero) listed in the IDX period of 2003-2015. This uses quantitative research method and use secondary data from 4 state-owned bank was being use. The dependent use here is ROA and NPL, LDR and OEOI as the independent variables. This research uses Eviews9 as the statistical tool to process the raw data and hypothesis testing. The method used to test the whether the variables have positive or negative effect is the multiple regression analysis. From the result it showed that NPL, OEOI is negative significant influence to ROA. Similarly, LDR is positive and significant influence to ROA which is the value of probability is less than 5%. But, CAR is negative and non- significance influence to ROA. Result of analysis show that predictive ability of the four independent variable in adjusted R2 is 87.2% and the rest 12.7% influence by other variable outside the model.