| Abstrakt: |
The ability of a bank to generate profits from its operational activities is a crucial factor in assessing its financial performance. The fluctuations in profitability, as measured by the Return on Assets (ROA), can be attributed to various factors such as the Capital Adequacy Ratio (CAR), Financing to Deposit Ratio (FDR), Non- Performing Financing (NPF), and Operating Expenses Operating Income (BOPO). This research aims to investigate the impact of CAR, FDR, NPF, and BOPO on the ROA of Sharia Commercial Banks (BUS) in Indonesia, both individually and collectively. The purpose of this study is to examine how the Capital (CAR), Liquidity (FDR), Credit Risk (NPF), and Efficiency (BOPO) ratios impact the Profitability (ROA) of Sharia Commercial Banks in Indonesia from 2019 to 2021. This research follows a descriptive quantitative approach, utilizing the Annual financial statements of 11 selected Sharia Commercial Banks during the mentioned time frame. These financial statements were collected from the official websites of each respective bank. For this study, the researchers utilized panel data regression analysis as their method. The outcomes of the simultaneous hypothesis tests (Test F) for CAR, FDR, NPF, and BOPO variables indicate a noteworthy impact on the profitability (ROA) of Islamic Commercial Banks. In the partial test (Test t), it was found that the CAR variable does not possess a considerable positive influence on the ROA of Islamic commercial banks. Conversely, the FDR variable exhibits a significant negative influence on ROA, whereas the NPF and BOPO variables exhibit a meaningful positive influence on ROA. [ABSTRACT FROM AUTHOR] |
