THE IMPACT OF CAPITAL ADEQUACY RATIO (CAR) AND NON PERFORMING LOAN (NPL) ON THE PROFITABILITY OF STATE OWNED BANKS LISTED ON THE INDONESIA STOCK EXCHANGE DURING 2015-2024

Hastri (Sekolah Tinggi Ilmu Ekonomi Makassar Bongaya)
Edy Jumady (Sekolah Tinggi Ilmu Ekonomi Makassar Bongaya)
Zulfikry Sukarno (Sekolah Tinggi Ilmu Ekonomi Makassar Bongaya)

Jurnal Riset Ekonomi dan Bisnis
Vol. 19 No. 2 (2026): AGUSTUS

This study aims to evaluate and analyze the impact of non-performing loans (NPLs) and the capital adequacy ratio (CAR) on the profitability of state-owned banks listed on the Indonesia Stock Exchange during the period from 2015 to 2024. This study uses secondary data obtained from the annual financial reports of these banks. In a purposive sampling process, four banks with a ten-year observation period and a total of forty observations were included. The analysis was conducted using multiple linear regression with SPSS version 26. The results of the study show that the “non-performing loans” (NPL) variable is the most important factor influencing the return on assets (ROA), while the capital adequacy ratio (CAR) has a positive and significant effect on ROA. This study indicates that business management should optimize their financial ratios by maintaining credit quality and limiting the proportion of non-performing loans. To improve a bank’s profitability, credit risk management is crucial.