The Effect of Non-Performing Loans (NPL), Operational Efficiency (BOPO), and CET1 Ratio on Financial Performance (Case Study of PT Bank Mandiri Tbk for the 2016-2025 Period)

Yunita Maha Rani (Universitas Pamulang)
Jamaludin

Escalate : Economics and Business Journal
Vol. 4 No. 3 (2026): Escalate : Economics and Business Journal

This study aims to analyze the impact of Non-Performing Loans (NPL), the ratio of Operating Expenses to Operating Income (BOPO), and Common Equity Tier 1 (CET1) on financial performance—proxied by Return on Assets (ROA)—at PT Bank Mandiri Tbk during the 2016–2025 period. The study employs a quantitative approach using secondary data spanning ten years, analyzed via multiple linear regression with the aid of SPSS 26. The results indicate that NPL has no significant effect on ROA (significance value of 0.264). BOPO has a significant negative effect on ROA (significance value of 0.019), while CET1 has a significant positive effect on ROA (significance value of 0.036). Simultaneously, NPL, BOPO, and CET1 significantly influence ROA, with a calculated F-value of 28.164 and a significance level of 0.001. The Adjusted R-squared value of 0.901 indicates that 90.1% of the variation in ROA can be explained by these three independent variables, while the remaining 9.9% is explained by factors outside the model.