The Effect of Financial Ratio (CAR, FDR, NPF and BOPO) on the Profitability Level in PT Bank Muamalat Indonesia TBK

The Effect of Financial Ratio (CAR, FDR, NPF and BOPO) on the Profitability Level in PT Bank Muamalat Indonesia TBK

Fitratin Nimah

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Wahyudin Maguni

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The Effect of Financial Ratio (CAR, FDR, NPF and BOPO) on the Profitability Level in PT Bank Muamalat Indonesia TBK

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Abstract

Profitability Ratio is a ratio to measure the level of profit obtained by a company. One of the Islamic banks in Indonesia since 1992, namely Bank Muamalat Indonesia (BMI). Based on financial report data for 2014-2016, BMI experienced a decline in assets, causing the profitability of the bank to decline. Therefore, BMI issued new shares through HMTD (Pre-emptive Rights) to obtain fresh funds in order to meet the shortage of liquidity that had occurred to BMIs for the past 4 years. Liquidity deficiency occurs due to a decrease in the rate of return of financing that reaches 6% above the maximal stipulations set by Bank Indonesia and has an impact on decreasing BMI income or profits, known as profitability. So this study was conducted to determine what factors affect the level of profitability in BMI since the last 4 years with indicators of assessment, among others: CAR (Capital Adequate Ratio), FDR (Financing Deposit Ratio), NPF (Non Performing Financing), and BOPO (Cost Operations on Operating Income). This research is a descriptive quantitative study using BMI financial report data for 2014-2017 taken from the BMI website as a data source. Data analysis in this study is multiple regression analysis and classic assumptions with SPSS 22 and Microsoft Excel analysis tools.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

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Not applicable for this article.

How to Cite This Article

Fitratin Nimah. 2019. \u201cThe Effect of Financial Ratio (CAR, FDR, NPF and BOPO) on the Profitability Level in PT Bank Muamalat Indonesia TBK\u201d. Global Journal of Management and Business Research - C: Finance GJMBR-C Volume 19 (GJMBR Volume 19 Issue C7).

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GJMBR Volume 19 Issue C7

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Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-C Classification JEL Code: G21

Submission ReceivedDecember 11, 2018
Peer Review Double Blind
Handling Editor
Accepted January 3, 2019
Published January 15, 2019

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December 17, 2019

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