THE EFFECT OF NPL, LDR AND OPERATIONAL COST OF OPERATIONAL INCOME ON ROA – AJHSSR

THE EFFECT OF NPL, LDR AND OPERATIONAL COST OF OPERATIONAL INCOME ON ROA

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THE EFFECT OF NPL, LDR AND OPERATIONAL COST OF OPERATIONAL INCOME ON ROA

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ABSTRACT: This studyaims to determine the effect of Non-PerformingLoans, Loan to Deposit Ratio andOperationalCosts Operating Income on BankingProfitabilitywhichisproxied by Return On Assets. in 2014-2018.The total sample of 32 commercial bankswent public listed on the Indonesia Stock Exchange in the 2014-2018periodtaken by purposivesampling technique. The analysis technique usedis multiple linearregressionanalysis.The resultsshowedthat the Non-PerformingLoans (NPL) variable had a negative and significanteffect on ReturnOn Assets (ROA),Loan to Deposit Ratio(LDR)had a positive and significanteffect on Return On Assets (ROA)and OperationalCosts Operating Incomehad a negative and significanteffect on Return On Assets (ROA).

Keywords: NPL, LDR, BOPO, ROA