The Effect of Risk Profile, Income, and Capital Profiles on Earnings Changes in Banking Industries

Abstract

This study aims to determine the effect of the Risk Profile measured by Non-Performing Loans (NPL) and Loan to Deposit Ratio (LDR), Earnings are measured by Return on Assets (ROA) and Capital measured with Capital Adequacy Ratio (CAR) to changes in earnings. The population in the study included 28 banking companies listed on the Indonesia Stock Exchange 2013-2015. The sampling technique used was purposive sampling and obtained as many as 12 samples company. The data used in this study is secondary data namely financial statements that meet the criteria. Data were taken from the report finance obtained from Bank Indonesia which can be accessed through www.idx.co.id. Data analysis used multiple linear regression analysis. The results showed that there were variables that had an effect on profit changes are ROA variables while NPL, LDR, and CAR variables have no effect on changes in earnings.