The influence of banking specific factors and macroeconomic factors on bank profitability in Indonesia / Muhammad Farel Akuan, Mahatma Kufepaksi and Ernie Hendrawaty

This study aimed to analyze the influence of bank-specific factors and macroeconomic factors on bank profitability in Indonesia from 2009 to 2023. The analyzed bank-specific factors included capital adequacy ratio, credit risk, loan to deposit ratio, and bank size. Meanwhile, the examined macroeconomic factors were Gross Domestic Product (GDP) and inflation rate. This study used secondary data obtained from bank financial reports and macroeconomic statistical data during the period. The population of this study covered all banks registered as Bank Issuers on the Indonesia Stock Exchange in 2023. The analysis techniques used were descriptive analysis and panel data regression using Eviews 10 software. The results indicated that the capital adequacy ratio had a negative influence on bank profitability, while credit risk and bank size had a positive influence on bank profitability. However, the loan to deposit ratio did not have a significant influence on bank profitability. In addition, GDP had a positive influence on bank profitability, while the inflation rate did not have a significant influence on bank profitability.