Determinant of Profit Growth Regional Development Bank

Suwarno, Muhammad Miqdad, Yosefa Sayekti

Abstract: This research aims to analyzes the effect of Capital Adequacy Ratio (CAR), Non Performing Loan (NPL), Loan Deposit Ratio (LDR), Return on Equity (ROE), and Net Interest Margin (NIM) to profit growth of regional development bank in Indonesia. Data used in this research are secondary data that is Annual Report of regional development bank in Indonesia at 2012 2016. The populations in this research are the regional development bank in Indonesia at 2012 2016 periods. Sampling method is purposive sampling. The model of analysis used in this research is multiple linier regressions. Results of this research show that Non Performing Loan (NPL) and Loan Deposit Ratio (LDR) have positively effect but not significant to profit growth of regional development bank in Indonesia. Net Interest Margin (NIM) have negatively effect but not significant o profit growth of regional development bank in Indonesia. Return on Equity (ROE) and Capital Adequacy Ratio (CAR) have positifvely and significant effect to profit growth of regional development bank in Indonesia.

Keywords: Capital Adequacy Ratio CAR, Non Performing Loan NPL, Loan Deposit Ratio LDR, Return on Equity ROE, dan Net Interest Margin NIM to profit growth