Factors Influencing Bank Profitability: A Study of Indonesian Commercial Banks

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Analysis reveals net interest margin and non-performing loan impact return on assets in Indonesian banks.

Significant impacts on return on assets are seen from net interest margin and non-performing loans.
The analysis indicated that capital adequacy ratio and loan to deposit ratio do not significantly affect return on assets.
Using panel data regression analysis, the study examined financial data from Indonesian commercial banks.
Findings suggest that maintaining a low non-performing loan ratio is crucial for ensuring bank profitability.

Meidi et al. (2025) studied this question.

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