Abstract:
The purpose of this study is to examine the impact of NIM, Operational Efficiency,
and LDR on Asian Bank Profitability in Indonesia. This study relied on quantitative
data from the company's audited financial statements. Three independent variables
and one dependent variable are present. This study's population is Asian banks in
Indonesia, with 10 samples drawn from banks that met specified criteria between
2016 and 2021. The Random Effect Model is the technique used for multiple linear
regression on panel data. The value of adjusted R-squared among NIM, OER, and
LDR is 47.5518%, impacting ROA at the same time. According to the findings of the
study, NIM, OER, and LDR all have a substantial impact on Asian banking
profitability in Indonesia. NIM is the most important variable in determining
profitability based on this research. Therefore, ensuring that the factors that determine
profitability in a bank run smoothly and continue to improve is crucial to
continuously increasing profitability and contributing to the country's economic
development. For the time being, investors and banking customers could benefit from
this research and assess this research better for the next improvement.
