Analysis Of The Effect Of Profitability Ratio On Return On Assets In PT. Bank Sumut
Keywords:
NPL, LDR, BOPO, NIM, CASA, ROA
Abstract
The research objective is to examine the effect of the Non Performing Loan (NPL), Loan to Deposit Ratio (LDR), Operating Expense to Operating Income (BOPO), Net Interest Margin (NIM), dan Current Account Saving Account (CASA) partially and simultaneously to PT. Bank Sumut Return on Asset (ROA). The population of this research is the branch office of PT. Bank Sumut which has been established during the observation period from 2014 to 2018. This research uses purposive sampling. The analytical tool used is panel data regression and data processing using software Stata 13. The results of this research show that the NPL and LDR ratios have a negative effect on ROA, while the BOPO, NIM, and CASA ratios have a positive effect on ROA.
References
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Akhter, S. & Roy, J. K. (2017). Analysis of Credit Risk, Liquidity, and Profitability of Selected Non-Bank Financial Institution : An Empirical Study. Journal of Business, 2(2), 16-23. http:/journalofbusiness.us
Almazari, A. A. (2013). Capital Adequacy, Cost Income Ratio and the Performance of Saudi Banks. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(4), 284-293. http:// www.hrmars.com
Almazari, A. A. (2014). Impact of Internal Factors on Bank Profitability : Comparative Study between Saudi Arabia and Jordan. Journal of Applied Finance & Banking, 4(1), 125-140.
Alshatti, A. S. (2015). The Effect of Credit Risk Management on Financial Performance of the Jordan Commercial Banks. Investment Management and Financial Innovation, 12(1), 338-345. http://www.businessperspectives.org
Altavilla, C., Boucinha, M., & Peydro, J. (2017) Monetary policy and bank profitability in a low interest rate environment. ECB Working Paper, No. 2105.
Al-Qudah, A. M., & Jaradat, M. A. (2013). The Impact of Macroeconomic Variables and Banks Characteristics on Jordanian Islamic Banks Profitability: Empirical Evidence. International Business Research, 6(10), 153–162. http://doi.org/10.5539/ibr.v6n10p153
Anjom, W., & Karim, A. M. (2016). Relationship between Non-Performing Loans and Masroeconomics Factor with Bank Specific Factor : A Case Study on Loan Portofolios - SAARC Countries Perspective. ELK Asia Pasific Journal of Finance and Risk Management, 7(2). http://www.elkjournals.com
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Borio, C., Gambacorta, L., & Hofmann, B. (2015) The influence of monetary policy on bank profitability. Bank for International Settlements Working Paper, No. 514.
Chege, L. M., & Bichanga, J. (2017). Non-Performing Loans dan Financial Performance of Banks : An Empirical Study of Commercial Banks in Kenya. International Journal of Management and Commerce Innovations, 4(2), 909-916. http://www.researchpublish.com
Choriri, G. dan. (2007). Teori Akuntansi.
Chou, T., & Buchdadi, A. D. (2016) Bank Performance and Its Underlying Factor : A Study of Rural Banks in Indonesia. Accounting and Finance Research, 5(3), 55-63. http://www.sciedupress.com
Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns, (June 1991), 49–65. http://doi.org/10.1177/031289629101600103
Genay, H., & Podjasek, R. (2014). “What is the impact of a low interest rate environment on bank profitability?”. Chicago FED Letter, no 324.
Geng, Z., et al. (2016). The effects of the interest rates on bank risk in China : A panel data regression approach. International Journal of Engineering Business Management, (Volume 8), 1-7. http://www.enb.sagepub.com
Grahita Chandrarin. (2017). Metode Riset Akuntansi. Malang.
Guru, B. K., Staunton, J., & Shanmugam, B. (2000). Determinants of Commercial Bank Profitability in Malaysia. Asian Academy of Management Journal, 5(2).
Haneef, S., et al. (2102). Impact of Risk Management on Non-Performing Loans and Profitability of Banking Sector of Pakistan. International Journal of Business and Social Science, 3(7), 307-315.
Hasanov, F. J., Bayramli, N., & Al-Musehel, N. (2018). Bank specific and Macroeconomic Determinants of Bank Profitability : Evidence from an Oil-Dependent Economy. International Journal of Finacial Studies, 6(78). http://www.mdpi.com
Houaton, E. F. B. dan J. F. (2001). Manajemen Keuangan. Jakarta.
Kasmir. (2016). Analisis Laporan Keuangan. Jakarta : Raja Grafindo Persada
Kingu, P. S., Macha, S., & Gwahula, R. (2018). Impact of Non-Performing Loans on Bank's Profitability : Empirical Evidence from Commercial Banks in Tanzania. International Journal of Scientific Research and Management, 6(1), 71-79. http://ijsrm.in
Kumar, V., & Kishore, P. (2019). Macroeconomics and bank Specific Determinants of Non-Performing Loans in UEA Conventional Bank. Journal of Banking and Finance Management, 2(1), 1-12.
Lassalle, D. (2009). Determinants of Bank Profitability in Macao, 93–113. http://doi.org/10.5539/ijef.v6n12p46
Machfoedz, M. (1994). Financial Ratio Analysis and the Prediction of Earning Changes in Indonesia. Kelola.
Muda, M., Shaharuddin, A., & Embaya, A. (2013). Theory in DBA, Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia. International Journal of Economics and Financial Issues, 3(3), 559–569.
Naceur, S. (2003). The Determinants of the Tunisian Banking Industry Profitability : Panel Evidence. Universite Libre de Tunis Working Papers, 1–17. Retrieved from http://www.mafhoum.com/press6/174E11.pdf
Nguyen, D. T., Ta, H. T., & Nguyen, H. T. D. (2018). What Determines the Profitability of Vietnam Commercial Banks? International Business Research, 11(2), 231-245. http://doi.org/10.5539/ibr.v11n2p231
Owusu, G., Banerjee, R., & Antwi, J. (2002). Interest Rate Spread on Bank Profitability: The Case of Ghanaian Banks. Journal of Accounting, Business and Finance Research, 1(1), 34-45.
Ozgur, O., & Gorus, M. S. (2016). Determinant of Deposit Bank Profitability : Evidence from Turkey. Journal of Applied Economics and Business Research, 6(3), 218-231.
Ozurumba, B. A. (2016). Impact of Non-Performing Loans on the Performance of Selected Commercial Banks in Nigeria. Research Journal of Finance and Acounting, 7(16), 95-109. http://www.iiste.org
Petkovski, M., Kjosevski, J., & Jovanovski, K. (2018). Empirical Panel Analysis of Non-Performing Loans in the Czech Republic. What are their Determinants and How Strong is Their Impact on the Real Economy? Czech Journal of Economic and Finance, 68(5), 460-490.
Petria, N., Capraru, B., & Ihnatov, I. (2015). Determinants of Banks’ Profitability: Evidence from EU 27 Banking Systems. Procedia Economics and Finance, 20(15), 518–524. http://doi.org/10.1016/S2212-5671(15)00104-5
Putra, A. A. W. Y., & Badjra, I. B. (2015). Pengaruh Leverage , Pertumbuhan Penjualan Dan Ukuran Perusahaan Terhadap Profitabilitas. E-Jurnal Manajemen Universitas Udayana, 4(7), 2052–2067. https://doi.org/ISSN 2302-8912
Rahman, M. A., Asaduzzaman, M., & Hossin, M. S. (2017). Impact of Financial Ratio on Non-Performing Loans of Publicly Traded Commercial Banks in Bangladesh. International Journal of Financial Research, 8(1), 181-188. http://dx.doi.org/10.5430/ijfr.v81p181
Rengasamy, D. (2014). Impact of Loan Deposit Ratio (LDR) on Profitability : Panel Evidence from Commercial Banks in Malaysia. International Conference on Global Business, Economics, Finance and Social Science, (December 2014)
Rossi, S., et al. Determinants of Bank Profitability in The Euro Area : What Has Change During the Recent Financial Crisis? International Business Research, 11(5), 18-27. http://doi.org/10.5539/ibr.v11n5p18
Sabir, M., Ali, M., & Habbe, A. (2012). Pengaruh Rasio Kesehatan Bank terhadap Kinerja Keuangan Bank Umum Syariah dan Bank Konvensional di Indonesia. Jurnal Analisis, 1(1), 79-86.
Sheefeni, J. P. (2015) Evaluating the Impact of Bank Specific Determinants of Non-Performing Loans in Namibia. Journal og Emerging Issues in Economic, Finance and Banking, 4(2), 1525-1541. http://www.globalbizresarch.org
Sugiyono. (2016). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung: PT Alfabet.
Syahyunan. (2015). Manajemen Keuangan. Medan: USU Press. Retrieved from http://usupress.usu.ac.id
Topak, M. S., & Talu, N. H. (2017). Bank specific and Macroeconomic Determinants of Bank Profitability : Evidence from Turkey. International Journal of Economics and Finacial Issues, 7(2), 574-584. http://www.ecojournals.com
Yesmine, S., & Bhuiyah, M. S. (2015). Determinants of Banks' Financial Performance : A Comparative Study Between Nationalized and Local Private Commercial Banks of Bangladesh. International Journal of Business and Management Invention, 4(9), 33-39. http://www.ijbmi.org
Zainul, Z. R. (2018). Pengaruh Leverage, Likuiditas Dan Ukuran Perusahaan Terhadap Profitabilitas Pada Bni Syariah Di Indonesia Periode 2015-2017, 3(4), 147–160.
Akhter, S. & Roy, J. K. (2017). Analysis of Credit Risk, Liquidity, and Profitability of Selected Non-Bank Financial Institution : An Empirical Study. Journal of Business, 2(2), 16-23. http:/journalofbusiness.us
Almazari, A. A. (2013). Capital Adequacy, Cost Income Ratio and the Performance of Saudi Banks. International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(4), 284-293. http:// www.hrmars.com
Almazari, A. A. (2014). Impact of Internal Factors on Bank Profitability : Comparative Study between Saudi Arabia and Jordan. Journal of Applied Finance & Banking, 4(1), 125-140.
Alshatti, A. S. (2015). The Effect of Credit Risk Management on Financial Performance of the Jordan Commercial Banks. Investment Management and Financial Innovation, 12(1), 338-345. http://www.businessperspectives.org
Altavilla, C., Boucinha, M., & Peydro, J. (2017) Monetary policy and bank profitability in a low interest rate environment. ECB Working Paper, No. 2105.
Al-Qudah, A. M., & Jaradat, M. A. (2013). The Impact of Macroeconomic Variables and Banks Characteristics on Jordanian Islamic Banks Profitability: Empirical Evidence. International Business Research, 6(10), 153–162. http://doi.org/10.5539/ibr.v6n10p153
Anjom, W., & Karim, A. M. (2016). Relationship between Non-Performing Loans and Masroeconomics Factor with Bank Specific Factor : A Case Study on Loan Portofolios - SAARC Countries Perspective. ELK Asia Pasific Journal of Finance and Risk Management, 7(2). http://www.elkjournals.com
Arifin, Z. (2005). Teori Keuangan dan Pasar Modal.
Borio, C., Gambacorta, L., & Hofmann, B. (2015) The influence of monetary policy on bank profitability. Bank for International Settlements Working Paper, No. 514.
Chege, L. M., & Bichanga, J. (2017). Non-Performing Loans dan Financial Performance of Banks : An Empirical Study of Commercial Banks in Kenya. International Journal of Management and Commerce Innovations, 4(2), 909-916. http://www.researchpublish.com
Choriri, G. dan. (2007). Teori Akuntansi.
Chou, T., & Buchdadi, A. D. (2016) Bank Performance and Its Underlying Factor : A Study of Rural Banks in Indonesia. Accounting and Finance Research, 5(3), 55-63. http://www.sciedupress.com
Donaldson, L., & Davis, J. H. (1991). Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns, (June 1991), 49–65. http://doi.org/10.1177/031289629101600103
Genay, H., & Podjasek, R. (2014). “What is the impact of a low interest rate environment on bank profitability?”. Chicago FED Letter, no 324.
Geng, Z., et al. (2016). The effects of the interest rates on bank risk in China : A panel data regression approach. International Journal of Engineering Business Management, (Volume 8), 1-7. http://www.enb.sagepub.com
Grahita Chandrarin. (2017). Metode Riset Akuntansi. Malang.
Guru, B. K., Staunton, J., & Shanmugam, B. (2000). Determinants of Commercial Bank Profitability in Malaysia. Asian Academy of Management Journal, 5(2).
Haneef, S., et al. (2102). Impact of Risk Management on Non-Performing Loans and Profitability of Banking Sector of Pakistan. International Journal of Business and Social Science, 3(7), 307-315.
Hasanov, F. J., Bayramli, N., & Al-Musehel, N. (2018). Bank specific and Macroeconomic Determinants of Bank Profitability : Evidence from an Oil-Dependent Economy. International Journal of Finacial Studies, 6(78). http://www.mdpi.com
Houaton, E. F. B. dan J. F. (2001). Manajemen Keuangan. Jakarta.
Kasmir. (2016). Analisis Laporan Keuangan. Jakarta : Raja Grafindo Persada
Kingu, P. S., Macha, S., & Gwahula, R. (2018). Impact of Non-Performing Loans on Bank's Profitability : Empirical Evidence from Commercial Banks in Tanzania. International Journal of Scientific Research and Management, 6(1), 71-79. http://ijsrm.in
Kumar, V., & Kishore, P. (2019). Macroeconomics and bank Specific Determinants of Non-Performing Loans in UEA Conventional Bank. Journal of Banking and Finance Management, 2(1), 1-12.
Lassalle, D. (2009). Determinants of Bank Profitability in Macao, 93–113. http://doi.org/10.5539/ijef.v6n12p46
Machfoedz, M. (1994). Financial Ratio Analysis and the Prediction of Earning Changes in Indonesia. Kelola.
Muda, M., Shaharuddin, A., & Embaya, A. (2013). Theory in DBA, Comparative Analysis of Profitability Determinants of Domestic and Foreign Islamic Banks in Malaysia. International Journal of Economics and Financial Issues, 3(3), 559–569.
Naceur, S. (2003). The Determinants of the Tunisian Banking Industry Profitability : Panel Evidence. Universite Libre de Tunis Working Papers, 1–17. Retrieved from http://www.mafhoum.com/press6/174E11.pdf
Nguyen, D. T., Ta, H. T., & Nguyen, H. T. D. (2018). What Determines the Profitability of Vietnam Commercial Banks? International Business Research, 11(2), 231-245. http://doi.org/10.5539/ibr.v11n2p231
Owusu, G., Banerjee, R., & Antwi, J. (2002). Interest Rate Spread on Bank Profitability: The Case of Ghanaian Banks. Journal of Accounting, Business and Finance Research, 1(1), 34-45.
Ozgur, O., & Gorus, M. S. (2016). Determinant of Deposit Bank Profitability : Evidence from Turkey. Journal of Applied Economics and Business Research, 6(3), 218-231.
Ozurumba, B. A. (2016). Impact of Non-Performing Loans on the Performance of Selected Commercial Banks in Nigeria. Research Journal of Finance and Acounting, 7(16), 95-109. http://www.iiste.org
Petkovski, M., Kjosevski, J., & Jovanovski, K. (2018). Empirical Panel Analysis of Non-Performing Loans in the Czech Republic. What are their Determinants and How Strong is Their Impact on the Real Economy? Czech Journal of Economic and Finance, 68(5), 460-490.
Petria, N., Capraru, B., & Ihnatov, I. (2015). Determinants of Banks’ Profitability: Evidence from EU 27 Banking Systems. Procedia Economics and Finance, 20(15), 518–524. http://doi.org/10.1016/S2212-5671(15)00104-5
Putra, A. A. W. Y., & Badjra, I. B. (2015). Pengaruh Leverage , Pertumbuhan Penjualan Dan Ukuran Perusahaan Terhadap Profitabilitas. E-Jurnal Manajemen Universitas Udayana, 4(7), 2052–2067. https://doi.org/ISSN 2302-8912
Rahman, M. A., Asaduzzaman, M., & Hossin, M. S. (2017). Impact of Financial Ratio on Non-Performing Loans of Publicly Traded Commercial Banks in Bangladesh. International Journal of Financial Research, 8(1), 181-188. http://dx.doi.org/10.5430/ijfr.v81p181
Rengasamy, D. (2014). Impact of Loan Deposit Ratio (LDR) on Profitability : Panel Evidence from Commercial Banks in Malaysia. International Conference on Global Business, Economics, Finance and Social Science, (December 2014)
Rossi, S., et al. Determinants of Bank Profitability in The Euro Area : What Has Change During the Recent Financial Crisis? International Business Research, 11(5), 18-27. http://doi.org/10.5539/ibr.v11n5p18
Sabir, M., Ali, M., & Habbe, A. (2012). Pengaruh Rasio Kesehatan Bank terhadap Kinerja Keuangan Bank Umum Syariah dan Bank Konvensional di Indonesia. Jurnal Analisis, 1(1), 79-86.
Sheefeni, J. P. (2015) Evaluating the Impact of Bank Specific Determinants of Non-Performing Loans in Namibia. Journal og Emerging Issues in Economic, Finance and Banking, 4(2), 1525-1541. http://www.globalbizresarch.org
Sugiyono. (2016). Metode Penelitian Kuantitatif, Kualitatif dan R&D. Bandung: PT Alfabet.
Syahyunan. (2015). Manajemen Keuangan. Medan: USU Press. Retrieved from http://usupress.usu.ac.id
Topak, M. S., & Talu, N. H. (2017). Bank specific and Macroeconomic Determinants of Bank Profitability : Evidence from Turkey. International Journal of Economics and Finacial Issues, 7(2), 574-584. http://www.ecojournals.com
Yesmine, S., & Bhuiyah, M. S. (2015). Determinants of Banks' Financial Performance : A Comparative Study Between Nationalized and Local Private Commercial Banks of Bangladesh. International Journal of Business and Management Invention, 4(9), 33-39. http://www.ijbmi.org
Zainul, Z. R. (2018). Pengaruh Leverage, Likuiditas Dan Ukuran Perusahaan Terhadap Profitabilitas Pada Bni Syariah Di Indonesia Periode 2015-2017, 3(4), 147–160.
