The Effect Of NPF, FDR, And BOPO On ROA Of Islamic Commercial Banks For The Period 2017-2022

Abstract

Return On Assets (ROA) is a ratio to measure bank management in managing assets in order to obtain overall profit (profit). The smaller the NPF value, the greater the ROA value. The greater the FDR value, the greater the ROA value. The smaller the BOPO value, the greater the ROA value. The purpose of this study was to determine the effect of NPF, FDR, and BOPO on ROA. This type of research is quantitative research using secondary data in the form of annual data published by each Islamic Commercial Bank in 2017-2022 with data analysis techniques is panel data regression with a significance level of 5%. The results showed that NPF had an effect on ROA. FDR has no effect on ROA. BOPO has an effect on ROA. Simultaneously, NPF, FDR, and BOPO affect ROA. These results indicate that Islamic Commercial Banks must continue to pay attention to the level of financial ratios such as NPF, FDR, and BOPO to remain stable, so that it will have an impact on increasing the acquisition of ROA at Islamic Commercial Banks.