The Effect of Liquidity, Operational Efficiency, Credit Quality, and Capital on Profitability at PT BPR Kerta Raharja 2021–2025 Period

Evi Yulianti (Universitas Ekuitas Indonesia)
Cecep Taofiqurrochman (Universitas Ekuitas Indonesia)

Advances In Social Humanities Research
Vol. 4 No. 8 (2026): Advances In Social Humanities Research

Profitability is a key indicator reflecting a bank’s financial performance in generating earnings through the utilization of its assets. A decline in profitability may be influenced by various internal factors, including liquidity, operational efficiency, credit quality, and capital adequacy. This study aims to analyze the development of liquidity, operational efficiency, credit quality, capital adequacy, and profitability, as well as to examine the partial and simultaneous effects of liquidity, operational efficiency, credit quality, and capital adequacy on profitability at PT BPR Kerta Raharja during the 2021–2025 period. This study employed a quantitative approach with descriptive and verification methods. Secondary data were obtained from the quarterly financial reports of PT BPR Kerta Raharja for the 2021–2025 period, consisting of 20 observations. Data analysis was conducted using multiple linear regression preceded by classical assumption tests, followed by the coefficient of determination (R²), partial t-tests, and simultaneous F-tests. Descriptively, the Loan-to-Deposit Ratio (LDR) tended to increase, while the Operating Expenses to Operating Income (BOPO) ratio and Non-Performing Loan (NPL) ratio showed increasing trends. The Capital Adequacy Ratio (CAR) remained relatively stable, whereas Return on Assets (ROA) fluctuated with a declining tendency. Partially, LDR had a positive and significant effect on ROA (p = 0.006), BOPO had a negative and significant effect (p = 0.000), while NPL (p = 0.997) and CAR (p = 0.477) did not demonstrate significant effects. Simultaneously, all four variables significantly affected ROA (F = 72.97; p = 0.000), with a coefficient of determination of 95.1%. Liquidity and operational efficiency were the dominant factors influencing profitability, while credit quality and capital adequacy did not show significant partial effects. Improving ROA requires integrated management of intermediation functions, operational cost efficiency, credit quality, and capital structure.