Niniek , Imaningsih

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45ANALYSIS OF CAR, NPL, LDR AND BOPO EFFECTS ON ROA(CASE STUDY ON GOPUBLIC GENERAL BANKS LISTED ININDONESIA STOCK EXCHANGENiniek ImaningsihFEB UPNV East Java lecturerABSTRACTThe growth and development of a country is very dependent on its financialinstitutions. Financial institutions, especially banking, are the backbone in driving the wheels ofthe economy. Banking functions as a financial intermediary, that is, as an intermediary betweenthose who have excess funds and those who have funds. One technique in the analysis offinancial statements is the analysis of financial ratios. Financial ratio analysis is a companyanalysis instrument that explains various changes in financial conditions or operatingachievements in the past and helps illustrate the pattern of changes to then show the risks andopportunities inherent in the company concerned. The soundness of a bank is an evaluation of acondition of financial statements at a bank in a certain period in accordance with Bank IndonesiaStandards.This study aims to examine the effect of Capital Adequacy Ratio (CAR), Non PerformingLoans (NPL), Loan to Deposit Ratio (LDR) and BOPO on Return on Assets (ROA). The data inthis study are secondary data, namely banking companies on the Indonesia Stock Exchange. Thenumber of samples used was 10 Commercial Banks listed on the Indonesia Stock Exchange forthe period 2007-2016 taken through purposive sampling. The analytical method used in thisstudy is to use multiple regression analysis which had previously been tested classic assumptionsfirst.The results showed that simultaneously the independent variable (X) significantlyinfluenced Return on Assets (Y). While partially the variables LDR (X3) and BOPO (X4)significantly influence ROA (Y). While Partially Variable CAR X1) and Variable NPL (X2)have no significant effect on ROA (Y).Keywords: CAR, NPL, LDR, BOPO46PreliminaryBanks must continue to maintain public trust so that people no longer hesitate in depositingfunds in the bank. More and more people who save money in the bank will increase bank lendingto the public. This is very importantconsidering the source of bank income comes from lending activities in the form of interestincome. In addition, the increasing lending by banks can encourage the growth and developmentof the national economy because it facilitates various parties in carrying out their activities,especially for companies, government and private agencies, and the community in order to meettheir funding needs.Predictions of a company's financial performance are generally carried out by internalparties (management) and external parties of the company that have a relationship with thecompany concerned, such as: investors, creditors, and the government. Munawir (2007: 8) statesthat the parties are investing capital requires information about the extent of the smooth activityand profitability of the company, the potential for dividends, because with this informationshareholders can decide to retain their shares, sell, or even add them.Munawir (2007: 7) also states that companies need financial accounting information otherthan as a basis for planning, controlling, and making financial, operating and investmentdecisions also needed to determine the company's profitability and profit distribution. Onetechnique in financial statement analysis is ratio analysis finance (Kasmir, 2008: 281). Financialratio analysis is a company analysis instrument that explains various changes in operatingconditions or achievements in the past and helps illustrate the pattern of changes to then show therisks and opportunities inherent in the company concerned. Financial ratios are basicallyarranged by combining the numbers in the financial statements. Financial ratio analysis can helpbusiness people, the government, and other users of financial statements in assessing thecompany's financial condition, banking companies are no exception (Sudarni, 2005)The soundness of a bank is an evaluation of a condition of financial statements at a bank ina certain period and time in accordance with Bank Indonesia Standards (Riyadi, 2006: 175). Toassess the health of a bank can be carved with a variety of health assessment methods will affectthe ability of banks and customer loyalty to the bank concerned.To assess banking financial performance, five aspects of valuation are generally used,namely capital, assets, management, earnings and liquidity which are commonly called CAMEL.47Four of the five aspects, namely capital, assets, earnings and liquidity are assessed usingfinancial ratios (Kasmir, 2010: 275). Capital aspects (capital) can be assessed through the CapitalAdequacy Ratio (CAR),Asset aspects are valued by Non Performing Loans (NPL), earnings aspects include ReturnOn Assets (ROA) and Operational Costs to Operating Income (BOPO), while liquidity aspectsare assessed by Loan to Deposit Ratio (LDR). Profitability is an important indicator to measurethe performance of a bank. Return On Assets (ROA) focuses on the company's ability to earnearnings in the company's operations by utilizing its assets. So in this study ROA is used as ameasure of banking performance. The main objective of bank operations is to achieve maximumprofitability. Profitability is the ability of banks to generate or earn profits effectively andefficiently. The greater the ROA of a bank, the greater the level of profit achieved by the bankand the better the bank's position in terms of asset use (Dendawijaya, 2009: 119).Theoretical basisUnderstanding BankUnderstanding banks according to Law Number 10 of 1998, banks are business entitiesthat collect funds from the public in the form of deposits and distribute them to the public in theform of credit and or other forms in order to improve the lives of many people. From thedescription above it can be explained that the bank is a companyengaged in the financial sector, meaning that banking business is always related to financialmatters. So, it can be concluded that the banking business includes three main activities, namely:raising funds, channeling funds and providing other bank services.Financial RatiosFinancial ratio analysis Is a method of analysis to determine the relationship of certain items inthe balance sheet or income statement individually or in combination of the two reports(Munawir,2007).By using ratio analysis it is possible to determine the level of performance of a bank. Accordingto Kasmir (2010) these financial ratios can be grouped into:1. Liquidity RatioLiquidity ratio analysis is an analysis conducted on the ability of banks to meet their short-termobligations or obligations that are past due. Some liquidity ratios that are often used in assessingthe performance of a bank are Quick Ratio, Investing Policy Ratio, Banking Ratio, Assets toLoan Ratio, Investment Portfolio Ratio,Ratio, Loan to Deposit Ratio (LDR), Investment Risk Ratio, Liquidity RiskRatio, Credit Risk Ratio, Deposit Risk Ratio. (Kasmir, 2010: 281).482. Solvency RatioSolvency ratio analysis is an analysis used to measure the ability of banks to meet their long-termobligations or the ability of banks to fulfill obligations in the event of bank liquidation. Inaddition, this ratio is used to determine the ratio between the volume (amount) of funds obtainedfrom various debts (short and long term) and sources of cash outside the bank's own modelwith the volume of the fund's investment in various types of assetsowned by a bank. Some of the ratios are Capital Adequacy Ratio,Primary Ratio, Risk assets Ratio, Secondary Risk Ratio, Capital Ratio, Capital Risk.(Cashmere,2010: 282)3. Profitability RatioRentability ratio analysis is a tool to analyze or measure the level of business efficiency andprofitability achieved by the bank concerned. In addition, ratios in this category can also be usedto measure the soundness of banks. In the calculation of profitability ratios, a reciprocalrelationship between posts is usually soughtcontained in the income statement with items on the bank's balance sheet in order to obtainvarious indications that are useful in measuring the level of efficiency and profitability of thebank concerned. Analysis of the profitability ratio of a bank is Return on Assets, Return onEquity,MethodologyOperational Definitions and Measurement variablesOperational definition is to define the concept that will be operated on the basis of a study in aresearch in the form of variables, both based on theory and empirical data with the aim to explainand explain some variables, both dependent variables (Dependent Variables) and independentvariables (Independent Variables).Several definitions of measurement of operational research variables are based on theory andempirical data, where existing variables indicate that there are functional relationships that definedependent variables specifically on independent variables. In this study the variables used aredistinguished jasi two namely:Dependent Variable (Variable Y)Is a variable that needs to be explained (explained variable). Variabledependent in this study is the profitability aspect which is measured by ROA.Independent Variable (Variable X)49Is a variable that explains or influences other variables (explanatory variables). The independentvariables in this study are the Capital Adequacy Ratio (X1), Non Performing Loans (X2),The operational definitions of each variable used in this research, both for the dependent variableand the independent variable include:1. Return On Assets (Y) ROA is expressed as a percentage (%).2. Capital Adequacy ratio (X1) CAR CAR is expressed as a percentage (%).3. Non Performing Loans (X2) NPL NPLs are expressed as a percentage (%).4. Loan to Deposit Ratio (X3) of income through loans extended. (RP)BOPO (X4) BOPO means more efficient banking in operating.Population and Sample Determination TechniquesPopulationPopulation according to Sugiyono (2008: 115) is a generalization area consisting of objects orsubjects that have certain qualities and characteristics. Defined by researchers to be studied andthen conclusions drawn.The population is also the number of all objects or individuals who have certain characteristics,clear and complete that will be examined (Hasan, 2008) The population in this study are bankingcompanies listed on the Indonesia Stock Exchange (IDX) within a period of time The populationin this study were 10 banks that had the highest assetsResearch Results and DiscussionDiscussionBased on the results of the analysis, the researcher can conclude that:Based on simultaneous hypothesis testing, the influence of CAR, NPL, LDR and BOPOobtained F count of 14,293> F table of 2.47 then Ho is rejected and Hi is accepted, which meansthat overall the independent variables namely CAR (X1), NPL ( X2), LDR (X3) and BOPO (X4)simultaneously and significantly affect the dependent variable, namely Rerurn On Assets (Y).Based on partial hypothesis testing, the effect of Capital Adequacy Ratio (X1) on Return onAssets (Y) obtained hasl t count of 0.455 <t50Ho is accepted and Hi is rejected, which means that the Capital Adequacy Ratio (CAR) has nosignificant and positive effects on Return on Assets (ROA).The insignificance of the CAR variable to ROA is likely due to the capital conditions ofcommercial banks that went public in the ten year period of observation (a certain period) whichis very good, where the average CAR is 16.71% (far above the minimum CAR standard of bankswhich is 8%). This condition explains that banks rely on loans as a source of income and do notuse all their potential capital to increase bank profitability (such as the development of productsand services outside of loans that can increase fee base income).This causes CAR not to be a factor that significantly influences bank profitability (Esther,Djumahir and Kusuma, 2013). With the high CAR value that has been exceeded the limits set byBank Indonesia, it is proven that the potential capital at the Public Go Bank is not usedtoincrease profits for the company so that CAR does not affectThe profitability of commercial banks goes public. This is reinforced by the results ofresearch from Endra, Catur Wahyu (2013), a study titled "Analysis of the effects of CAR, NIM,LDR, NPL and BOPO on the suitability of case studies at Public Banks that Go Public on theIndonesia Stock Exchange Period 2002-2010 "which states that the Capital Adequacy Ratio(CAR) variable has no significant effect on the Return on Assets (ROA) variable. So in this caseCAR does not affect ROA on Commercial Banks listing on the Stock Exchange Indonesia.Based on partial hypothesis testing, the effect of Non Performing Loans (X2) on Returnon Assets (Y) obtained t-test results of -1,189 <ttable of 1,985 then Ho is accepted and Hi isrejected, meaning that partially there is no significant and negative influence between NonPerforming Loans (NPL) and Return On Assets (ROA). No NPL has any effect on ROA,meaning that the level of the ratio does not affect the level of profit the bank receives. NPL isrelated to the risk of financing problems faced by banks. The NPL is not significant to ROAbecause there are sources of profit other than interest such as relatively high fee-based incomethat can cover the occurrence of problem loans. In addition to non-interest income, non-performing loans can also be covered by the Allowance for Impairment Losses (CKPN). Thiscauses the NPL to be a factor that has a significant effect on profitability at commercial banksthat have gone public (Nur Aini, 2013). This is reinforced by the results of research by AnggitaPuji Santoso (2012), a study titled "The Effect of CAR, NPL and LDR on ROA (Case Study onCommercial Banks Listing on the Indonesia Stock Exchange in 2007)" which states that the NonPerforming Loan variable (NPL) has a negative and not significant effect on Rertun On Assets(ROA). So in this case NPL does not affect ROA at the BankGeneral Listing on the Indonesia Stock Exchange.Based on partial hypothesis testing, the influence of Loan to Deposit Ratio (X3) onReturn on Assets (Y) obtained t-test results of 2,948> t table 1,985 then Ho is rejected and Hi isaccepted, meaning that the Loan to Deposit Ratio (LDR) has a significant effect and positive onReturn On Assets (ROA), this is because when the LDR gets bigger it happens that the volumeof lending to banks will increase. The greater the volume of lending will cause an increase in51bank profitability because banks gain income through credit interest, so that the LDR has asignificant positive effect on ROA.This is reinforced by the results of research from Catur Wahyu Endra (2013), a studytitled "Analysis of the effects of CAR, NIM, LDR, NPL and BOPO on the case study fitabilityon Commercial Banks that Go Public on the Indonesia Stock Exchange Period 2002-2010 "statesthat the Loan to Deposit Ratio (LDR) variable has a positive and significant effect on Return onAssets (ROA). So in this case the LDR Affects ROA on Commercial Banks listing on the IndonStock ExchangeCONCLUSIONFrom the results of the study showed the variable CAR, NPL. LDR and BOPO togetherhave a significant effect on ROA. Related, any changes that occur in the independent variablesnamely CAR, NPL, LDR and BOPO simultaneously or jointly will affect the ROA at PublicBanks Go Public in Indonesia.By looking at the results of the significant test of the Independent Variable on the Return onAsset (Y) Value, it can be seen that the Loan to Deposit Ratio (X3) and BOPO (X4) variables arevariables that are significantly related to Return on Assets (Y) while the Capital Adequacy Ratiovariable (X1) and Non Performing Loans (X2) no impact on Return On Assets (Y)SuggestionBased on the conclusions above, the following are some suggestions for consideration as follows:1. Banking companies on the Indonesia Stock Exchange need to return the value of the CapitalAdequacy Ratio (CAR) which is above the minimum limit set by Bank Indonesia of 8%. A CARthat is too high causes idle funds (idle funds) to increase and not increase to generate profits forbanking companies.REFERENCESBank Indonesia. (2016). Financial Stability Review. Taken fromhttp://www.bi.go.id/statistik/perbankan/indonesia/Default.aspx.Bilian, Fenandi and Purwanto. (2015). Analysis of the Effect of CAR, NIM, BOPO and LDRAgainst the Profitability of Bank PerseroBudisantoso. Totok and Nuritomo. (2013). Banks and other financial institutions. Third Edition.Jakarta: Salemba Empat.52Dendawijaya, Lukman. 2009. Banking Management Second Edition. Jakarta: Ghalia Indonesia.Endra, Chess Wahyu. (2013). Analysis of the Effect of CAR, NIM, LDR, NPL, and BOPO onProfitability (Studies in Commercial Banks that Go Public on the Indonesia Stock ExchangePeriod 2002-2010).Esther, Djumahir and Kusuma. (2013). Analysis of Financial Ratios to Commercial Banks inIndonesia.Ghozali, Imam. (2009). Multivariate Analysis Application with SPSS Program. Semarang:UNDIP.Gudjarati, Damodar. (2010). Basic Econometrics. Jakarta: Erlangga Publisher.Cashmere. (2008). Banking management. 2008 Revised Edition. Jakarta: PT Raja GrafindoPesada.Cashmere. (2010). Banking management. 9. Jakarta Edition: PT Raja Grafindo Persada.Lesmana, Yuanita. (2008). Consistency Between Discretionary Accrual and RatioCAMEL In Measuring Bank Soundness. Indonesian businessmaAyuningrum's daughter, Anggrainy. (2011). Analysis of the Influence of CAR, NPL, BOPO,NIM and LDR on ROA (Study on Public Go Public Banks Registered on the Indonesia StockExchange in 2005-2009).R.G Sakul, Dechrista. (2012). Factors Affecting Return on Assets (ROA) in National PrivateBanks in Indonesia for the Period of 2006-2010.

Analysis Of Car, Npl, Ldr And Bopo Effects On Roa Case Study On Go Public General Banks Listed in Indonesia Stock Exchange

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Analysis Of Car, Npl, Ldr And Bopo Effects On Roa Case Study On Go Public General Banks Listed in Indonesia Stock Exchange

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