Open AccessMeasuring Banking Profitability Based on Quality Earning Assets and Net Performing Loan
Author(s) -
Nasrul Nasrul
Publication year - 2021
Publication title -
bongaya journal of research in management
Language(s) - English
Resource type - Journals
ISSN - 2615-8876
DOI - 10.37888/bjrm.v4i2.248
Subject(s) - profitability index , multicollinearity , return on assets , asset quality , loan , business , population , asset (computer security) , quality (philosophy) , regression analysis , sample (material) , actuarial science , econometrics , economics , finance , capital adequacy ratio , mathematics , statistics , computer science , microeconomics , philosophy , chemistry , demography , computer security , epistemology , chromatography , sociology , profit (economics)
This study aims to determine whether Earning Asset Quality affects Profitability, whether Non-Performing Credit affects Profitability, and to determine whether Earning Asset Quality and Non-Performing Credit have a simultaneous effect on Profitability. Collecting data using secondary data obtained from the financial statements using the cross-sectional technique. The population in this study is the financial statements PT Bank Negara Indonesia Tbk. Branch Makassar Period 2011 – 2019 taken while the sample amounted to 36 pieces. The results of such financial statements have been tested with the classical assumption in the form of normality assumptions, assumptions, and assumptions multicollinearity autokorellasy. Methods of data analysis using multiple linear regression analysis". "The first results showed that The Quality Of Productive Assets significant positive effect on The Profitability. Both Problem Loan does not affect a positive and significant impact on Profitability. Third, The Quality Of Productive Assets and Problem Loan influence simultaneously the value of The Profitability: