JRK Vol. 2 No. 3 September 2024 DETERMINAN PROFITABILITAS BANK PEREKONOMIAN RAKYAT (BPR) DI PROVINSI NUSA TENGGARA BARAT PERIODE 2020-2023

Abstract

This research aims to analyze the influence of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR), Non-Performing Loans (NPL), Operational Costs and Operational Income (BOPO) on Return on Assets (ROA) at Bank Ekonomi Rakyat. in West Nusa Tenggara province for the 2020-2023 period. The data collection method in this research is a survey sample with a research sample of 18 People's Economic Banks obtained using a purposive sampling technique. This research is quantitative research with an analysis method using the Partial Least Square (PLS) approach using SmartPLS 4.0 software. This research also uses descriptive statistical analysis, R-Square test, Q-Square test, and path coefficient test using the bootstrapping method. The research results show that CAR has a positive and significant effect on ROA, LDR has a negative and insignificant effect on ROA, NPL has a negative and significant effect on ROA, and BOPO has a negative and significant effect on ROA. People's Economic Bank should pay more attention to developments in the company's financial performance, especially the CAR, LDR, NPL and BOPO ratios so that it can make the right decisions to increase profitability.