Analysis of the Influence of CAR, NPF, FDR, and BOPO on the Profitability of Sharia Commercial Banks

Abstract

The aim of the paper is to investigate the impact of Capital Adequacy Ratio (CAR), Non-Performing Financing (NPF), Financing to Deposit Ratio (FDR), and Operating Cost to Operating Income (BOPO) on the profitability of Sharia Commercial Banks in Indonesia. The research aims to investigate the simultaneous and partial effects of these variables on Return on Assets (ROA) as a proxy for profitability. The study uses secondary data from annual reports of Sharia Commercial Banks from 2019 to 2023 originated from the Financial Service Authority. Using multiple regressions linear, the results of the research shows that CAR, FDR, NPF, and BOPO have a negative influence on Return on Assets (ROA).