Analysis of Factors Affecting Bank Profitability with Total Assets Minimum 1 (One) Billion

Abstrak

This research was conducted to examine the effect of variable banking ratio, funds
interest rate, interest spread, fee based income ratio and inefficiency ratio of
Profitability (ROA). Profitability is used to measure the effectiveness of management
based on results generated from the loan repayment and investment. The ratio is
important for the bank's profitability is Return On Assets (ROA). Financial ratios that
affect the ROA is the banking ratio, funds interest rate, interest spread, fee based
income ratio and inefficiency ratio. The sampling technique used was purposive
sampling with the criteria of commercial bank serving the financial statements. The
analysis technique used is the classical assumption of the analysis, multiple
regression analysis and hypothesis test with a level of significance of 8,841%. The
results of the research simultaneously (test F) states that the banking ratio, funds
interest rate, interest spread, fee based income ratio and inefficiency ratio jointly
affect the profitability (ROA) of banks. While the results show that the correlation
coefficient between profitability (ROA) of banks with 5(five) independent variables
of 60,336%. And the result of research partially (t) states that the variable interest
spread did not have a significant effect on profitability (ROA) of banks. And variable
banking ratio, funds interest rate, fee based income ratio and inefficiency ratio
significant effect on profitability (ROA) of banks.