The Effect of Capital Adequacy Ratio (CAR), Loan To Deposit Ratio (LDR) And Net Profit Margin (NPM) on Financial Performance of Bank DKI

Sri Retnaning Sampurnaningsih(1*), Cahya Irani(2), Sahroni Sahroni(3), Zulfitra Zulfitra(4), Denok Sunarsi(5),

(1) University Of Pamulang, Tangerang Selatan, Banten, Indonesia.
(2) University Of Pamulang, Tangerang Selatan, Banten, Indonesia.
(3) University Of Pamulang, Tangerang Selatan, Banten, Indonesia.
(4) University Of Pamulang, Tangerang Selatan, Banten, Indonesia.
(5) University Of Pamulang, Tangerang Selatan, Banten, Indonesia.
(*) Corresponding Author



The purpose of this study was to determine the effect of Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Net Profit Margin (NPM) on Financial Performance at PT Bank DKI, period 2010 - 2019. The method used is descriptive quantitative by using classical assumption test, Multiple Linear Regression, T-test, F-test, and Coefficient of Determination Test. The t-test results showed that CAR has no significant effect on ROA. LDR has no significant effect on ROA. NPM has a significant positive effect on ROA. The F-test results showed that simultaneously CAR, LDR, NPM have a significant effect on ROA at PT Bank DKI for the 2010-2019 period. The coefficient of determination test results showed the contribution of the independent variables Capital Adequacy Ratio (CAR), Loan to Deposit Ratio (LDR) and Net Profit Margin (NPM) to Return On Assets (ROA), (by Adjusted R2) is 72.5% and the remaining 27.5% is influenced by other factors. The limitation of this research is the sampling of research using the financial statements of 2010 – 2019. The variables taken are only limited to banking fundamental factors, namely liquidity ratios and profitability ratios. This research is expected to enrich information as a reference as well as literature on banking financial performance by using banking fundamental ratios, namely Capital Adequacy Ratio (CAR), Loan to Deposits (LDR), Net Profit Margin (NPM) and Return On Assets (ROA).


Capital Adequacy Ratio; Net Profit Margin; Loan to Deposit Ratio; Return On Assets.

Full Text:



Adrian, T., & Shin, H. S. (2011). Financial intermediary balance sheet management. Annu. Rev. Financ. Econ., 3(1), 289–307.

Alagathurai, A., & Nimalathashan, B. (2013). Corporate governance and banking performance: A comparative study between private and state banking sector in Sri Lanka. Ajanthan, A., S. Balaputhiran, and B. Nimalathashan." Corporate Governance and Banking Performance: A Comparative Study between Private and State Banking Sector in Sri Lanka." European Journal of Business and Management, 5(2013), 92–100.

Albulescu, C. T. (2015). Banks’ profitability and financial soundness indicators: A macro-level investigation in emerging countries. Procedia Economics and Finance, 23, 203–209.

Apătăchioae, A. (2015). The performance, banking risks and their regulation. Procedia Economics and Finance, 20, 35–43.

Bassem, B. S. (2012). Social and financial performance of microfinance institutions: Is there a trade-off? Journal of Economics and International Finance, 4(4), 92–100.

Behera, A. K., Nayak, N. C., & Das, H. C. (2015). Performance measurement in banking & software firm: An empirical research. Global Journal of Flexible Systems Management, 16(1), 3–18.

Chang, C.-P., & Lee, C.-C. (2010). Globalization and economic growth: A political economy analysis for OECD countries. Global Economic Review, 39(2), 151–173.

Choiriyah, C., Saprida, S., & Sari, E. (2021). Development of Sharia Banking System In Indonesia. Mizan: Journal of Islamic Law, 5(1), 17–28.

Dinçer, H., Yüksel, S., & Çetiner, İ. T. (2019). Strategy selection for organizational performance of Turkish banking sector with the integrated multi-dimensional decision-making approach. In Handbook of research on contemporary approaches in management and organizational strategy (pp. 273–291). IGI Global.

Fatima, N. (2014). Capital adequacy: A financial soundness indicator for banks. Global Journal of Finance and Management, 6(8), 771–776.

Ginevičius, R., & Podviezko, A. (2013). The evaluation of financial stability and soundness of Lithuanian banks. Economic Research-Ekonomska Istraživanja, 26(2), 191–208.

Hadad, M. D., Hall, M. J. B., Kenjegalieva, K. A., Santoso, W., & Simper, R. (2011). Productivity changes and risk management in Indonesian banking: A Malmquist analysis. Applied Financial Economics, 21(12), 847–861.

Liébana-Cabanillas, F., Nogueras, R., Herrera, L. J., & Guillén, A. (2013). Analysing user trust in electronic banking using data mining methods. Expert Systems with Applications, 40(14), 5439–5447.

Loayza, N. V. (2016). Informality in the Process of Development and Growth. The World Economy, 39(12), 1856–1916.

Moussaoui, K. A., & Varela, P. (2010). Exploring consumer product profiling techniques and their linkage to a quantitative descriptive analysis. Food Quality and Preference, 21(8), 1088–1099.

Nastiti, N. D., & Kasri, R. A. (2019). The role of banking regulation in the development of Islamic banking financing in Indonesia. International Journal of Islamic and Middle Eastern Finance and Management.

Omar, A., Sultan, N., Zaman, K., Bibi, N., Wajid, A., & Khan, K. (2011). Customer perception towards online banking services: Empirical evidence from Pakistan. Journal of Internet Banking and Commerce, 16(2).

Raut, R., Cheikhrouhou, N., & Kharat, M. (2017). Sustainability in the banking industry: A strategic multi‐criterion analysis. Business Strategy and the Environment, 26(4), 550–568.

Salman, A., & Nawaz, H. (2018). Islamic financial system and conventional banking: A comparison. Arab Economic and Business Journal, 13(2), 155–167.

Schaffer, M. (2019). The role of competition, innovation, and regulation on financial intermediary risk. Managerial Finance.

Sobol, I. (2016). Development of Islamic banking in Indonesia. Prace Naukowe Uniwersytetu Ekonomicznego We Wrocławiu, 447, 168–177.

Stroeva, O. A., Mironenko, N. V, Lyapina, I. R., & Petrukhina, E. V. (2016). Peculiarities of formation of socially oriented strategy of economic growth of national economy.

Surroca, J., Tribó, J. A., & Waddock, S. (2010). Corporate responsibility and financial performance: The role of intangible resources. Strategic Management Journal, 31(5), 463–490.

Vania, A. S., Nugraha, E., & Nugroho, L. (2018). Does Earning Management Happen in Islamic Bank?(Indonesia and Malaysia Comparison). International Journal of Commerce and Finance, 4(2), 47–59.

Venkataramana, N., Azash, S., & Ramakrishnaiah, K. (2012). Financial performance and predicting the risk of bankruptcy: A case of selected cement companies in India. International Journal of Public Administration and Management Research, 1(1), 40–56.

Wu, H.-Y. (2012). Constructing a strategy map for banking institutions with key performance indicators of the balanced scorecard. Evaluation and Program Planning, 35(3), 303–320.

Article Metrics

Abstract view : 396 times | PDF view : 108 times


  • There are currently no refbacks.

Copyright (c) 2022 Sri Retnaning Sampurnaningsih, Cahya Irani, Sahroni Sahroni, Zulfitra Zulfitra, Denok Sunarsi

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Diterbitkan oleh:

Program Studi Ilmu Administrasi Publik

Program Pascasarjana Universitas Negeri Makassar


JIAP Index By:


View My Stats

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.