A CORRELATION BETWEEN NON-PERFORMING LOANS (NPL) AND BANK PROFITABILITY: A CASE STUDY OF PT BANK RAKYAT INDONESIA (PERSERO) TBK, 2020–2024

Authors

  • Agung Setyo Nugroho Perbanas Institute
  • Adika Phalosa Adinata Perbanas Institute
  • Wahyu Setyaningrum Perbanas Institute
  • Fangky A Sorongan Perbanas Institute

Keywords:

Keywords:  Non-Performing Loans, Profitability, Loans

Abstract

Abstract –   This study aims to examine the correlation effect of Non-Performing Loans (NPL), NPL Ratio, Loans, and Credit on corporate profitability. The data utilized in this research is sourced from the annual financial reports of one of Indonesia’s state-owned banks, PT Bank Rakyat Indonesia (Persero) Tbk, covering the period from 2020 to 2024. The research employs a quantitative associative method, with data analysis conducted through a simple linear regression model. The findings reveal that the factors of Non-Performing Loans (NPL), NPL Ratio, Loans, and Credit demonstrate a positive linear relationship with the company’s profitability. However, the regression analysis indicates that the influence of Loans and NPL as dependent variables on BRI’s profitability, as the independent variable, is not statistically significant. This is attributed to BRI’s substantial revenue streams and other contributing factors that enhance and optimize the bank’s profitability.

Keywords:  Non-Performing Loans, Profitability, Loans

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Published

2025-08-08

Issue

Vol. 3 (2025): The 3rd Proceedings of the Perbanas International Seminar on Economics, Business, Management, Accounting and IT

Section

Articles