KEY FACTORS BEHIND PROFIT GROWTH IN BANKING

Abstract

An indicator of successful company performance is achieving optimal profits. Firms that undergo an augmentation in their earnings indicate that their performance is going well. The study executed was undertakenintended to scrutinize the consequences of Loan to Deposit Ratio (LDR), Return On Assets (ROA) and Non-Performing Loans (NPL) on profit growth. The exploration implemented is based on a quantitative methodology in its implementation. The subjects selected for this investigation consisted of selected employing a targeted sample selection method carried out with reference to purposive sampling which was previously articulated. A total of 38 banking entities that fulfill the stipulated criteria have been identified and chosen to be subjects in this study. Information employed within this context study. Within the confines of this investigation comes from banking company financial reports for 2019-2023 published by the marketplace for securities in Indonesia (BEI). The information set decomposition procedure was implemented through employing a multifaceted linear regression analysis utilizing SPSS version 25.0 software. The research results reveal which in part, LDR has no impact on increasing profits, ROA does not have significant implications for profit development and NPL exerts an adverse effect uponon the dynamics of increasing profits within the realm of financial institutions organizations officially recorded on the Indonesian Securities Market during 2019-2023.