The Influence of Credit Risk Management on the Profitability of Banks Listed on the Indonesian Stock Exchange

Felix Nathanael; Graficka Evoney; Aurum Zayyan; Henny Lestari

doi:10.37641/jimkes.v11i3.2283

Authors

Felix Nathanael Universitas Trisakti, Jakarta, Indonesia
Graficka Dea Evoney Universitas Trisakti, Jakarta, Indonesia
Aurum Zayyan Universitas Trisakti, Jakarta, Indonesia
Henny Setyo Lestari Universitas Trisakti, Jakarta, Indonesia

DOI:

https://doi.org/10.37641/jimkes.v11i3.2283

Keywords:

Capital Adequacy Ratio, Non-performing Loan, Loan Loss Provision, Loan to Deposit Ratio, Return on Asset

Abstract

In general, every company strives to make as much profit as possible from its business activities. Financial performance is a measure of the company's success so that goals can be achieved as expected by the company. The purpose of this study is to see how the capital adequacy ratio (CAR), non-performing loans (NPL), loan loss provision (LLP), loan to deposit ratio (LDR) have an impact on bank profitability, in this study the profitability ratio used is return on assets (ROA). Conventional commercial bank companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2022 are the samples used in this study. The data were tested using panel data regression analysis techniques. The results showed that (1) CAR has a positive impact on ROA, (2) NPL has a negative impact on ROA, (3) LLPR has no impact on ROA, and (4) LDR has no impact on ROA.

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