ANALYSIS OF THE INFLUENCE OF CAR, NPF, OEOR AND INFLATION TO THE PROFITABILITY OF SHARIA BANK IN INDONESIA

Abstract

This research is conducted to study about the influence of CAR, NPF, OEOR, and Inflation toward the profitability of Sharia Bank in Indonesia in period 2010 - 2019. Purposive sampling is the sampling method that this research uses to take samples. The samples used for this research are 4 Sharia Banks in Indonesia. The data analysis methods to analyze the data observed are descriptive analysis, classical assumption test, coefficient of determination, multiple regression analysis and hypothesis analysis. The results of this research show that CAR, NPF, OEOR, and Inflation simultaneously influence the ROA of Sharia Bank. CAR has significant and positive influence on ROA, NPF Finance has no significant influence on ROA, OEOR has significant and negative influence on ROA, and Inflation has no significant influence on ROA. CAR, NPF, OEOR, and inflation simultaneously significantly influence ROA. The result of the adjusted R square is 0.0862, meaning that CAR, NPF, OEOR, and inflation simultaneously explaining 86.2% of ROA.