ANALYSIS OF THE INFLUENCE OF CAPITAL ADEQUACY RATIO, LON TO DEPOSIT RATIO AND RETURN ON ASSETS ON PROFIT (CASE STUDY ON CENTRAL ASIA TIRE, INDONESIAN PEOPLE'S BANK, MANDIRI BANK, INDONESIAN BANK, AND CIMB NIAGA BANK FOR 2014 – 2019 PERIOD)

Abstract

The rapid development in the banking world has a high level of complexity and affects the performance of a bank. This study aims to examine the effect of CAR, LDR, and ROA on earnings listed on the Indonesia Stock Exchange. The population in this study are foreign exchange commercial banks, totaling 5 banks. The type of data used in this study is secondary data obtained from the annual financial statements of banks published on the Indonesia Stock Exchange for the period 2014-2019.The sampling technique in this study used purposive sampling with 4 criteria and the sample in this study amounted to 5 banks. The analytical method used is multiple linear regression analysis.Hypothesis testing using the t test shows that the CAR variable has a significant positive effect on Profit, LDR has a significant positive effect on Profit and ROA has a significant positive effect on Profit. CAR, LDR and ROA together have a significant positive effect on profit.