DETERMINANTS OF BANKING PROFITABILITY IN INDONESIA FROM 2016 -2021 : STUDY CASE ON ASIAN ORIGIN BANK IN INDONESIA

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.