Pengaruh Capital Adequacy Ratio, Loan to Deposit Ratio, dan Non Performing Loan terhadap Profitabilitas pada Bank Kategori KBMI IV di Indonesia Tahun 2014- 2023

Abstract

KBMI IV banks are the largest core-capital banking group in Indonesia and play a strategic role in maintaining the stability of the national financial system. Despite their strong capital base, the profitability of KBMI IV banks fluctuated during the 2014–2023 period due to changing economic conditions, including the COVID-19 pandemic. This study aims to analyze the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), and Non-Performing Loan (NPL) on profitability as measured by Return on Assets (ROA) in KBMI IV banks in Indonesia during the 2014–2023 period. This study employed a quantitative approach using multiple linear regression analysis on secondary data obtained from the annual reports of KBMI IV banks. The results indicate that, simultaneously, CAR, LDR, and NPL have a significant effect on ROA, with the model explaining 59.5% of the variation in profitability. Partially, CAR and LDR have a positive and significant effect on ROA, while NPL has a negative and significant effect and is the most dominant factor affecting bank profitability. The findings suggest that adequate capital management, effective credit distribution, and proper control of non-performing loans are essential to improving the profitability of KBMI IV banks in Indonesia.