This research aimed to examine the relationship between Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-performing Loans (NPL) and the ratio of operating expenses to operating income (BOPO) toward Return on Assets (ROA) as a measure of the profitability banking company.
The method used is multiple linear regression with samples 10 largest banks based on total assets during the period from 2012 to 2016 and listed on the Indonesia Stock Exchange (IDX). From research conducted using multiple linear regression analysis obtained the influence of each variable. CAR and LDR has a positive effect on ROA respectively 0,040, and 0,011, while NPL and BOPO has negative effect on ROA of – 0,040 and – 0.107. CAR, LDR and BOPO have a significant effect on ROA with a significance level of 0,001, 0,001 and 0,000 whereas the NPL has not significantly influence to ROA with level of significance respectively 0,215. Banking conditions in the period 2012-2016, has good profitability, the quality of earning assets (NPL) which is far below the standard required and the level of efficiency (ROA) which is good. CAR is on average far above the standard required, causing many idle funds banking that should be used to earn income. LDR which has limit of the standard required, resulting profitability of banks |