Strong Capital and Interest Margins Boost Bank Profits in Indonesia
The study looked at how Capital Adequacy Ratio, Non Performing Loans, and Net Interest Margin affect bank profitability in Indonesia. They analyzed data from 34 banking companies over a 5-year period. The results showed that Capital Adequacy Ratio and Net Interest Margin have a positive impact on Return on Assets, while Non Performing Loans have a negative impact on Return on Assets.