THE EFFECT OF CAPITAL ADEQUACY RATIO (CAR), NON-PERFORMANCE FINANCING (NPF), AND OPERATIONAL COSTS OF OPERATING REVENUE (BOPO) ON THE PROFITABILITY OF SHARIA BANKS IN INDONESIA (STUDY ON ISLAMIC COMMERCIAL BANKS IN INDONESIA FOR THE PERIOD 2016-2020)
Profitability is a ratio that describes whether a business entity has a very good opportunity in the future, which comes from sales, use, and utilization or use of capital. A bank looks good from the performance of management in generating maximum profit per the company’s target. This study aims to determine the relationship between capital adequacy ratios (CAR), Non-Performance Financing operating income operating costs (BOPO) on profitability. This study aims to determine the existence of capital adequacy ratio (CAR) and operational income operating costs (BOPO) on profitability in Islamic banking in Indonesia for the 2016-2020 period. The sampling technique in this study was purposive sampling and obtained 12 banks with a study period of 5 years. The results showed that the capital adequacy ratio, non-performing finance, and operational costs of operating income simultaneously affected profitability. Partially, the capital adequacy ratio does not affect profitability, and non-performing finance does not affect profitability. While the operational costs of operating income harm profitability.
Capital Adequacy Ratio (CAR), Non-Performance Financing (NPF), Operational Cost of Operating Income (BOPO).