Study reveals key factors impacting bank profitability in Southeast Asia.
The study looked at how different factors like Capital Adequacy Ratio, Net Interest Margin, Non-Performing Loan, and Loan to Deposit Ratio affect the Return On Asset of banks in Southeast Asia from 2012 to 2018. They used data analysis to see the impact of these variables on the banks' performance. The results showed that Capital Adequacy Ratio and Net Interest Margin have a positive influence on Return On Asset, while Non-Performing Loan does not have a significant effect. Surprisingly, Loan to Deposit Ratio was found to have a negative impact on Return On Asset.