The Effect of Net Interest Margin, Bank Size, and Non- Performing Loans on Return on Assets of Conventional Banks  Listed on the Indonesia Stock Exchange (2021–2025 Period)

Dela Najirah; Farida Farida; Nana Trisnawati; Maya Syafriana Effendi

Dela Najirah Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Persada Indonesia Y.A.I, Jakarta
Farida Farida Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Persada Indonesia Y.A.I, Jakarta
Nana Trisnawati Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Persada Indonesia Y.A.I, Jakarta
Maya Syafriana Effendi Program Studi Manajemen, Fakultas Ekonomi dan Bisnis, Universitas Persada Indonesia Y.A.I, Jakarta

Keywords: Net Interest Margin, Bank Size, Non Perfoming, Return On Asset

Abstract

This study aims to analyze the effect of Net Interest Margin, Bank Size, and Non-Performing Loans on Return on Assets of Conventional Banks Listed on the Indonesia Stock Exchange during the 2021–2025 period. This study uses a quantitative approach with a panel data method using the Eviews application. The study sample used 42 banks, with secondary data obtained from company financial reports and the official IDX website. The results show that partially, Net Interest Margin (NIM) has a significant effect on Return on Assets (ROA), as evidenced by the value (4.300793 > 1.9716) with a probability value of 0.0000 < 0.05. Bank Size (BS) significantly influences Return on Assets (ROA), as evidenced by the value (2.397509 > 1.9716) with a probability value of 0.0176 < 0.05. Non Performing Loans (NPL) do not significantly influence Return on Assets (ROA), as evidenced by the value (0.615967 < 1.9716) with a probability value of 0.5388 > 0.05. Simultaneously, Net Interest Margin (NIM), Bank Size (BS), and Non-Performing Loans (NPL) significantly influence Return on Assets (ROA), as evidenced by the value (4.481924 > 2.650) with a probability value of 0.0000 < 0.05.

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